ACTG 2020 Lecture Notes - Lecture 1: Cost Leadership, Management Accounting, Rede Ferroviária Nacional
Document Summary
Managerial accounting week 1 chap 1 & 2. Managerial accounting the provision of accounting information for a company"s internal users. Uses firm"s accounting system and formats to tailor towards managers. Managerial accounting has 3 broad objectives: provide info for planning organization"s actions, provide info for controlling the organization"s actions, provide info for making effective decisions. Information needs for planning, controlling, and decision making. In particular managers and empowered workers need comprehensive, up-to-date info for: planning. Detailed formulation of action to achieve a particular end. Ex: achieve objective of increasing short term and long-term profitability by improving overall quality of products: controlling. The managerial activity of monitoring a plan"s implementation and taking corrective action as needed is called controlling. Achieved by comparing actual performance with expected performance (may introduce replanning, continuing as planned, etc. : and decision making. Cannot plan or control the org without making decisions regarding competing alternatives. Managerial (internal accounting) is for internal users vs external with financial.
