👉 Administration math, often referred to as management accounting or cost accounting, involves the preparation and analysis of financial data to assist managers in decision-making processes within an organization. It focuses on providing detailed, relevant information about costs, revenues, and profitability to help managers understand the financial health and operational efficiency of the business. This includes techniques like budgeting, variance analysis, cost-volume-profit (CVP) analysis, and activity-based costing (ABC), which help in forecasting, performance evaluation, and strategic planning. Unlike financial accounting, which is primarily concerned with external reporting to stakeholders, administration math is internal and tailored to support the organization's management needs.
