[ACTG 2020] - Midterm Exam Guide - Everything you need to know! (53 pages long)

• School: York University
• Department: Accounting
• Course: ACTG 2020
• Professor: Joelle Pokrajac

Document Summary

Benefit: provides managers with information that improves decisions and creates organizational value. Helps inform managers of the impact that certain decisions will have on key performance measures (financial and nonfinancial) and on the success of the organization. Managerial accounting the provision of accounting information for a company"s internal users: not bound by any formal criteria, prepared for managers. 3 broad objectives: provide information for planning organization"s actions, provide information for controlling the organization"s actions, provide information for making effective decisions. Many companies are increasingly deciding to release their managerial accounting information through various reports. Accounting system needs to be flexible enough to provide both financial and managerial accounting information. Key point is flexibility should be able to supply different information for different purposes. Controlling the managerial activity of monitoring a plan"s implementation and taking corrective action as needed: compare actual performance with expected performance, need to evaluate and correct the steps that being taken to implement the plan.