BU247 Lecture Notes - Management Accounting, Financial Statement, Cost Accounting
Document Summary
Nonfinancial management accounting info includes measures related to customer satisfaction and loyalty, process quality and timeliness, innovation, and employee motivation. Financial accounting retrospective; reporting and summarizing in financial terms the results of past decisions. Primarily orientated to external stakeholders, such as investors, creditors, regulations, and tax authorities stresses the form in which it is communicated. Rules for how the content gets developed and how the content will be presented. Both retrospective and prospective" incorporates forecasts and estimates about future events, as well as feedback about past. Primarily orientated to needs of employees and managers inside the organization. No prescribed form or rules about its content; that gets determined by manager judgments about what best meets their needs for actionable info. A good management accounting system can become a source of competitive advantage. Early 19th century systems to measure the cost of producing individual products. As enterprises grew in scale and scope, the demands for accurate costing info increased.
