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Management accounts tell the management and board of directors whether their individual products are profitable by breaking down all the company's costs and allocating them to individual products. Each product line should contribute to the company's fixed overheads and profits. The company should focus on those products which make the greatest contribution. Management accounting (or cost accounting as it is known) involves making forecasts of the progress of individual products and then measuring the variances from those forecasts in the actuals. Management accounting is particularly important for companies producing highly competitive consumer products.

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