Textbook Notes (280,000)
CA (160,000)
Queen's (3,000)
COMM (600)
Chapter 1

COMM 112 Chapter Notes - Chapter 1: Geek Squad, Management Accounting, Cost Accounting


Department
Commerce
Course Code
COMM 112
Professor
Teri Shearer
Chapter
1

This preview shows page 1. to view the full 4 pages of the document.
1
WHAT IS MANAGERIAL ACCOUNTING
The provision of accounting information for a company’s internal users
Designed to support the information needs of mangers
There are no GAAPS or IFRS
Three broad objectives:
o To provide info for planning the organizations actions
o To provide info for controlling the organisations actions
o To provide info for making effective decisions
Mangers need up to date info for the following activities:
o Planning the detailed formulation of action to achieve a particular end
Requires set objectives
Ex: a form may set objectives of increasing short term and long term profitability by improving
overall quality of its products
Management needs to development plans that implement change and positive results
They should be clearly specified and detailed
o Controlling monitoring a plan’s implementation and taking corrective actions as needed
The implementation of the plan created before
Usually achieved by comparing actual performance with expected performance
This can be used to evaluate or correct the steps being taken
Based on feedback, manager can decide to let the plan continue as is or change it
The accounting for the planning and controlling can be financial or nonfinancial
o Decision making process of choosing amount competing alternatives
It is intertwined with planning and control
You can't plan and control without making decisions regarding competing alternatives
Supply information that triggers decision making
MANGERIAL VS FINANCIAL
CURRENT FOCUS OF MANAGERIAL ACCOUNTING
Changed to match technology advancements
Provides info that improves company’s planning, control and decision making
Evaluating the business from a cross-functional perspective
Providing info useful in improving total quality
New methods of estimating product cost and profitability
You're Reading a Preview

Unlock to view full version