COMMERCE 2AB3 Chapter 1: Chapter 1 - MA.docx
4 Mar 2014
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Document Summary
Accounting systems provide information such as financial statements and performance reports. Managers use financial and cost accounting information to: administer each of the activity or functional areas for which they are responsible, and, coordinate those activities or functions within the framework of the organization as a whole. An ideal management information system (mis) comprises databases (data warehouses / info- barns) consisting of detailed bits of information that can be used for multiple purposes. Cost accounting measures and reports financial and nonfinancial information, which relates to the cost of either acquiring or utilizing resources in an organization. Financial accounting focuses on reporting to external parties in a standardized format. Managers are responsible for issuing financial statements that are free from material misstatement to investors, government regulators and other parties outside the organization. It is past-oriented and must be prepared in accordance to gaap. Management accounting focuses on reporting to internal parties.
