BUS 121 - Managerial AccountingChapter 1: Introduction to Managerial AccountingI.The Organization and the Work of ManagementA.Made up of people; hired to work together to attain goals.B.Strategic plan is drafted which flows from goals to objectives.C.The work of management in the organization:1.Planning.2.Directing and Motivating.3.Controlling.a.Measuring and evaluating performance.b.Use of Feedback.II.Comparison: Financial vs. Managerial AccountingA.Financial Accounting: Outside Reporting; Managerial Accounting: Internal Reporting.B.Financial Accounting: Historical; Managerial Accounting: Emphasis on the Future.C.Financial Accounting: Reporting is strict, according to GAAP; Managerial Accounting: Reporting is flexible, useful in analysis and decision-making. Emphasis on relevance of the information.III.Organizational Structure and Need for InformationA.An evolving emphasis of “decentralization” in decision-making; close to the source.
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