Cost and Management Accounting information is used by different stakeholders. The users of the information can be broadly categorised into internal…

(a) Internal Users Internal users, who use the Cost and Management Accounting information may include the followings: (a) Policy Makers- The policy makers are those who formulate strategies (i) to achieve the goals (short & long term both) to fulfil the objectives of the organisation. (ii) to position the organisation into the competitive market environment. (iii) to design the organisational structure to get the policy and strategies implemented. etc. (b) Managers- The managers use the information (i) to know the cost of a cost object and cost centre (ii) to know the price for the product or service (iii) to measure and evaluate performance of responsibility centres (iv) to the know the profitability-product-wise, department-wise, customer-wise etc. (v) to evaluate the strategic options and to make decisions (c) Operational level staff- The operational level staff like supervisors, foreman, team leaders require information (i) to know the objectives and performance goals for them (ii) to know product and service specifications like volume, quality and process etc. (iii) to know the performance parameters against which their performance is measured and evaluated. (iv) to know divisional (responsibility centre) profitability etc. (d) Employees- Employees are concerned with the information related with time and attendance, incentives for work, performance standards etc. External Users External users, who use the Cost and Management Accounting information may include the followings: (a) Regulatory Authorities- Regulatory Authorities are concerned with cost accounting data and information for different purpose which includes tariff determination, providing subsidies, rate fixation etc. To do this the regulatory bodies require information on the basis of some standards and format in this regard. (b) Auditors- The auditors while conducting audit of financial accounts or for some other special purpose audit like cost audit etc. require information related with costing and reports reviewed by management etc. (c) Shareholders- Shareholders are concerned with information that effect their investment in the entity. Management communicates to the shareholders through periodic communique, annual reports etc. regarding new orders received, product expansion, market share for products etc. (d) Creditors and Lenders- Creditors and lenders are concerned with data and information which affects an entity's ability to serve lenders or creditors. For example, any financial institutions which provides loan to an entity against book debts and inventories are more concerned with regular reporting on net debt position and stock balances.