Abstract:

Management accounting is an essential component of hospital management that involves identifying, measuring, analyzing, and interpreting financial and non-financial information to support decision-making. In hospitals, management accounting helps managers make informed decisions about resource allocation, cost management, and performance evaluation. Hospitals set budgets for various departments, and management accounting helps to track expenses and compare them to the budget. This information can be used to identify areas where costs can be reduced or where additional funding is required. Additionally, management accounting allows hospital managers to evaluate the performance of individual departments and identify areas where improvement is needed. By analyzing key performance indicators, managers can make informed decisions to improve the quality of care while reducing costs. Overall, management accounting plays a critical role in hospital management and is essential for making informed decisions that support high-quality patient care.