CHAPTER 1 NOTES_10 - 1 CHAPTER 1 NOTES Managerial...

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CHAPTER 1 NOTES Managerial Accounting Basics Managerial accounting is a field of accounting that provides economic and financial information for managers and other internal users . Managerial accounting applies to all types of businesses—service, merchandising, and manufacturing—and to all forms of business organizations—proprietorships, partnerships and corporations. Moreover, managerial accounting is needed in not-for-profit entities as well as in profit-oriented enterprises. The role of the managerial accountant has changed in recent years. Whereas in the past their primary concern used to be collecting and reporting costs to management, today they also evaluate how well the company is using its resources and providing information to cross-functional teams comprised of personnel from production, operations, marketing, engineering, and quality control. Managerial accountants are now responsible for strategic cost management . This means they help evaluate how well the company is using its resources . They are also responsible for collecting various types of non-financial information. Comparing Managerial and Financial Accounting There are both similarities and differences between managerial and financial accounting: Similarities : both fields of accounting deal with the economic events of a business and require that the results of that company's economic events be quantified and communicated to interested parties and both use the same underlying accounting system. Principal differences : (1) primary users of reports, (2) types and frequency of reports, (3) purpose of reports, (4) content of reports, and (5) verification process. The distinguishing features of managerial accounting are:
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This note was uploaded on 03/03/2012 for the course ACCT 2460 taught by Professor Farrar during the Winter '12 term at Conestoga.

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CHAPTER 1 NOTES_10 - 1 CHAPTER 1 NOTES Managerial...

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