What is the primary purpose of managerial accounting?

The primary purpose of managerial accounting is to provide information for internal decision-making. This branch of accounting focuses on generating detailed reports and analyses tailored to the needs of managers and internal users, which help them make informed decisions about operations, budgeting, and performance evaluation. Managerial accounting emphasizes the specific needs of the organization, such as planning and controlling business activities, improving efficiency, and enhancing profitability. By analyzing cost behavior, profitability, and performance metrics, managerial accounting equips decision-makers with relevant data necessary for strategic planning and effective management of resources.

In contrast, other options highlight functions that are generally the focus of financial accounting, which caters to external stakeholders or compliance requirements. Therefore, while gathering data for tax reporting and regulatory compliance is essential, these functions do not represent the core objective of managerial accounting, which is fundamentally aimed at facilitating internal management decisions.