ACCT 2209 Lecture Notes - Lecture 1: Total Quality Management, Financial Accounting, Business Process
Document Summary
Managerial accounting provides information for managers of an organization who direct and control its operations. Financial accounting provides information to shareholders, creditors, and others who are outside the organization. Primary external to the organization investors, creditors, regulatory bodies. Must follow prescribed accounting standards (international financial reporting standards ifrs) Primary internal to the organization mangers and other decision makers. Individual organizational units or the entire organization as necessary. No prescribed standards or prescribed format; extent of detail decided by management. Reasons for increased relevance & importance of managerial accounting: expanded competitive boundaries globalization, organizations need to find new ways of going business, ethical responsibility and corporate governance. The main idea underlying this model is to eliminate waste. Companies incorporate practices with this goal in mind. Just-in-time (jit: receive customer orders, schedule production, receive materials just in time for production, complete parts just in time for assembly into products, complete products just in time to shop to customers.
