ACCT 2550 Lecture 1: Financial Vs. Managerial Accounting
26 Jun 2019
School
Department
Course
Professor
Document Summary
Provide services, not products (e. g. accounting firms, barbers, law offices, etc. Sell other company"s products (e. g. retail stores, wholesalers, etc. A company"s mission, vision, objectives and values (i. e. environment, customers, employees, society, etc. Selecting a course of action with plans on how to implement. Day-to-day activities, making decisions, managing resources and people. Procedures for making-adjustments according to feedback information (i. e. a performance report). Provides information to shareholders, creditors, and others who are outside the organization. Provides information for managers of an organization who direct and control its operations. Reasons for increased relevance & importance of managerial accounting. Organizations need to find new ways of doing business. The main idea underlying this model is to eliminate waste. Companies incorporate practices with this goal in mind. Ethical practices build trust and promote productive relationships. Unethical behavior is often the result of managers focusing on short term results at any cost.
