MGT323H5 Chapter Notes - Chapter 1: Chief Operating Officer, Corporate Social Responsibility, Fiduciary
Document Summary
Cost accounting measures and reports financial and nonfinancial information related to the costs of acquiring and using resources. The goal is to present fair information to external parties of how business activities during a specific time period affected the economic health of a company. This is called economic substance which is the financial outcome of all the different types of business transactions that happened. Financial accountants report financial outcomes based on gaap. Reports formatted in a way similar to balance sheets, income statements, and statements of cash flows are common to both management accounting and financial accounting: management accounting measures analyzes and reports financial and nonfinancial information to internal managers. The goal is to use past performance to predict the future. The internal reports should inform manages of the financial results of actual operations and show how activities can be changed to affect and improve what will happen in the future.
