ACCT 211 Study Guide - Quiz Guide: Management Accounting, General Idea, Investopedia
Document Summary
Our textbook defines managerial accounting as, an area of accounting aimed mainly at serving the decision-making needs of internal users (wild & shaw). While this definition gives a general idea, it fails to truly describe the purpose of managerial accounting and why it can be so useful. Managerial accounting works to connect managers of a company with vital information that will allow them to achieve that company"s goals. In order to achieve this, managerial accounting works to provide information on the price of a company"s products and services, plan future activities, and compare planned and actual results (wild & shaw). In general, this form of accounting looks at two major costs, those of planning and control decisions. Planning involves long-term and short-term decisions that involve the future goals and development of a company. Control involves watching over the activities of a company and their employees as well as reviewing any potential planning decisions.
