Final answer:
Managerial accounting involves the creation and assessment of internal financial data to assist management in decision-making. It includes cost accounting, budgeting, forecasting, and financial analysis tailored to internal strategic planning and operational control.
Step-by-step explanation:
Simply put, managerial accounting is the generation and analysis of internal financial information to support management decision-making. Unlike financial accounting, which is focused on providing information to external parties such as investors, managerial accounting is concerned with providing relevant data to managers inside the organization. The data involves various forms of accounting such as cost accounting, budgeting, forecasting, and various financial analysis tools that aid in strategic planning, product design, performance management, and operational control.