This work aims to meet the needs of students of management by covering the key areas in management accounting to a reasonable depth. It is for students on full or part-time MBA programmes and other business management courses. It explains what management accounting can and cannot do. The first chapter of the book contains a summary of financial accounting and could be used as a stand-alone text on short courses. The capital investment material in chapter 7 has been revised for this second edition and a new chapter on the presentation and communication of managing accounting reports has been added (chapter 10). Other topics new to this edition are activity-based accounting, joint costs, agency theory and the economics of scale.