Final Paper
Week 6 Final Paper
Diana Leigh
BUS630: Managerial Accounting
Wendy Achilles
April 15th, 2013
Introduction Managerial accounting is an internal business function that deals with the day‐to‐day operation of a business. A managerial accountant gathers and reports information that helps managers in decision making and unlike financial accounting it does not have to follow established standards and principles. It is concerned with such matters as profitability in relation to both cost and volume of sales, budgeting, making decisions about pricing, and the general productivity of the business (Schneider, 2012). This information is of value to managers and helps them to make decisions about projects, new products or services, reorganization of departments, and other internal matters. How important are the new approaches such as just in time, activity based costing and flexible forecasting, to managerial accounting?
Definition of managerial accounting The definition of managerial accounting, also called cost accounting, is that, it is the process of identifying, measuring, analyzing, interpreting, and communicating information within an organization to achieve the organizations goals. Managerial accounting is not subject to the same rules and principles as is financial accounting (Schneider, 2012). Financial accounting is mandatory and its statements must comply with the generally accepted accounting principles (GAAP). These statements are used to report the company’s status to external users such as; investors and creditors. With managerial accounting operational reports, are only used inside a company to help managers make decisions. Managerial accounting emphasizes the future while the past is the emphasis with financial accounting.
Role of managerial accounting and the management accountant in a business or organization Managerial accountants add value to an organization by maintaining accounting records,
Diana Leigh
BUS630: Managerial Accounting
Wendy Achilles
April 15th, 2013
Introduction Managerial accounting is an internal business function that deals with the day‐to‐day operation of a business. A managerial accountant gathers and reports information that helps managers in decision making and unlike financial accounting it does not have to follow established standards and principles. It is concerned with such matters as profitability in relation to both cost and volume of sales, budgeting, making decisions about pricing, and the general productivity of the business (Schneider, 2012). This information is of value to managers and helps them to make decisions about projects, new products or services, reorganization of departments, and other internal matters. How important are the new approaches such as just in time, activity based costing and flexible forecasting, to managerial accounting?
Definition of managerial accounting The definition of managerial accounting, also called cost accounting, is that, it is the process of identifying, measuring, analyzing, interpreting, and communicating information within an organization to achieve the organizations goals. Managerial accounting is not subject to the same rules and principles as is financial accounting (Schneider, 2012). Financial accounting is mandatory and its statements must comply with the generally accepted accounting principles (GAAP). These statements are used to report the company’s status to external users such as; investors and creditors. With managerial accounting operational reports, are only used inside a company to help managers make decisions. Managerial accounting emphasizes the future while the past is the emphasis with financial accounting.
Role of managerial accounting and the management accountant in a business or organization Managerial accountants add value to an organization by maintaining accounting records,
References: Chai-Amonphaisal, K. & Ussahawanitchakit, P. (2010). Decision-making/ Strategic Planning. Retrieved from; Institute of Management Accountants. (2011) Ethical Behavior for Practitioners of Management Accountants and Financial Management, Retrieved from; Walther, L. (2012). Introduction to Managerial Accounting. Principles of Accounting.com. Retrieved from; http://www.principlesofaccounting.com/chapter17/chapter17.html