[COMMERCE 2AB3] - Midterm Exam Guide - Ultimate 66 pages long Study Guide!
6 Feb 2017
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Field of accounting that provides economic and financial information for managers and other internal users. Applies to: all types of businesses. Service, merchandising, and manufacturing: all forms of business organizations. In the past managerial accountants were primarily engaged in cost accounting: collecting and reporting costs to management. Now they are responsible for strategic cost management: helps management evaluate how well the company is employing its resources, managerial accountants work alongside people from production, marketing, and engineering when company makes critical strategic decisions. Ma(cid:374)agerial a(cid:272)(cid:272)ou(cid:374)ta(cid:374)t(cid:859)s role i(cid:374) a(cid:374) orga(cid:374)izatio(cid:374: determine product costs, also held responsible for evaluating how well the company is employing its resources. Financial accounting reports are general-purposed and intended for external users. Managerial accounting reports are special-purpose and issued as frequently as needed. Ma(cid:374)agers(cid:859) activities and responsibilities can be classifies into 3 broad functions: planning. Requires management to look ahead and to establish objectives.
