BUS 254 chapter 1 notes

BUS 254 chapter 1 notes - Managerial Accounting = concerned...

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Managerial Accounting = concerned with providing information to managers for internal use (planning, controlling, decision making) Reports capturing sales, costs, orders received, benchmarking are created Financial Accounting = concerned with providing information to external users Follows GAAP and annual and quarterly statements are prepared Manager’s activities are planning, directing and motivating, and controlling Planning Selecting a course of action and specifying how action will be implemented Looking at alternatives picking best one Also look at demand for resources against alternatives Revenues and Costs Budgets = detailed plan for the future in quantitative terms Prepared by controller (manager in charge of Acc Department) Directing and Motivating Oversee day-to-day activities and make sure everything functions smoothly Motivate and direct people (assigning job, answer questions, settle disputes, etc.) Controlling Control = process of instituting procedures and obtaining feedback to ensure everything is functioning effectively and towards company goals Feedback = Accounting and other reports helping managers monitor performance and problems Performance Report = comparing budgeted data to actual data The Planning and Control Cycle = flow of management activities (plan direct control plan) Differences between managerial and financial accounting
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BUS 254 chapter 1 notes - Managerial Accounting = concerned...

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