The distinguishing features of managerial accounting

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The distinguishing features of managerial accounting are: Primary users of reports—internal users: officers and managers. Types and frequency of reports—internal reports issued as frequently as needed. Purpose of reports—special-purpose for specific decisions. Content of reports—pertains to subunits of the business and are very detailed; extends beyond double-entry accounting system to any relevant data; standard is relevance to decisions. Verification process—no independent audits . Management Functions Management performs three broad functions within an organization: a. Planning requires management to look ahead and to establish objectives. b. Directing involves coordinating a company's diverse activities and human resources to produce a smooth-running operation. c. Controlling is the process of keeping the firm's activities on track. 1
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Organizational Structure In order to assist in carrying out management functions, most companies prepare organization charts to show the interrelationships of activities and the delegation of authority and responsibility within the company. Shareholders own the corporation, but they manage it through a board of directors . The Chief Executive Officer (CEO) has overall responsibility for managing the business. The Chief Financial Officer (CFO) is responsible for all of the accounting and finance issues the company faces. The CFO is supported by the controller and the treasurer . Business Ethics All employees are expected to act ethically in their business activities and an increasing number of organizations provide their employees with a code of business ethics.
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