Management accounting is the accounting that is concerned with following up on the company’s own financial reports and related to decision-making, planning and control of operational processes, and management accounting is defined as the activity used in preparing financial statements about the organization in order to contribute to providing the necessary support for administrative decisions.

Another definition of management accounting is that it is the financial report related to the factors affecting decision-making, management planning and operations control, as management accounting is concerned with focusing on control and planning in order to achieve special goals in the company.
The concept of managerial accounting appeared for the first time in 1950, during the formation of a team called management accounting through the Anglo-American Council, and the task of the team was to visit a group of industrial facilities located in the United States, in order to draft a report on the nature of work in them.

Then the report was published under the title (Management Accounting) and it contained a definition of the concept of this type of accounting by explaining accounting information in a way that helps management to prepare special policies in the daily operations of establishments, according to the International Federation of Accountants known by its acronym (IFAC). It is developed through the following basic stages:

- The stage of financial control and cost determination before 1950:
It is the stage in which the characteristics of managerial accounting did not appear, but the companies’ interest was linked to determining the cost, which later led to the emergence of cost accounting, which is one of the most important foundations of managerial accounting. Introduction to the idea of ​​management accounting.

The stage of control and administrative planning (1950 AD - 1965 AD):
It is the stage in which the term management accounting appeared and became one of the administrative tools. The task of the management accountant relied on providing information with the aim of applying management planning, providing assistance to management in making decisions and preparing the appropriate plan to achieve the goals using many methods such as financial control and decision analysis.

- The phase of helping to reduce the waste of resources (1965 AD - 1985 AD):
It is the stage associated with the interest of management accounting in following up on investment and special decisions in finance, as it was concerned with following up on external relations, which contributed to the development of the methods used in management accounting within most of the company’s functions, beginning with control and planning, and then formulating investment decisions, leading to the preparation of budgets. Management accounting relied on the use of quantitative analysis through the use of modern technology to reduce costs and improve quality.

- The stage of effective use of resources (1985 - 1995):
It is the stage that focused on searching for advanced scientific methods in order to determine costs and build value based on the effective use of available resources and modern technology in order to face developments in the economy.

The stage of the technological revolution (after 1995 AD):
This is the stage in which technology spread in all economic fields, such as trade and industry, and this resulted in the emergence of large investments that imposed on management accounting the adoption of a management philosophy consistent with these developments, which led to the emergence of modern tools, such as target costs and activity-based management.

Management accounting seeks to achieve a set of goals, which are:
- Providing appropriate assistance to managers in establishments by providing them with the appropriate tools to apply the accounting and financial evaluation, which contributes to the follow-up of administrative performance in detail and overall at one time.
- Implementing a deep foundation in data analysis, according to the application of appropriate methodologies based on the integration of management and accounting tools.
Contribute to building a future outlook towards profitable performance and private financial achievement in the institution in order to issue appropriate recommendations to achieve harmony between the systems of the administrative process and the special requirements of the future plan.

- Studying the potential risks that affect the vitality and continuity of work, and then developing the necessary models to overcome any potential financial or administrative damages, whether at the present or the future.
- Participation in the development of financial budgets because management accounting budgets cover all financial activities in the institution and are characterized as realistic, that is, they can be implemented depending on the capabilities of the institution, and these budgets allow the possibility of adjusting them in line with changes in the circumstances affecting the state of the institution.