ACC 406 Chapter Notes -Chief Financial Officer, Management Accounting, Total Quality Management

• School: Ryerson University
• Department: Accounting
• Course: ACC 406
• Professor: Alison Beavis

Document Summary

Managerial accounting: the provision of accounting information for a company"s internal users. Not bound by any formal criteria such as gaap or ifrs. To provide information for planning the organization"s actions. To provide information for controlling the organization"s actions. To provide information for making effective decisions. Companies release their information through csr reports. Examples: corporate sustainability report, social responsibility report, citizenship report. Planning: the detailed formulation of action to achieve a particular end. Requires setting objectives and identifying methods to achieve those objectives. Controlling: monitoring a plan"s implementation and taking corrective action as needed. Usually achieved by comparing actual performance with expected performance. Decision making: the process of choosing among competing alternatives. An important role of managerial accounting is to supply information that facilitates decision making. Financial accounting: primarily concerned with producing information for external users (investors, creditors, suppliers, government agencies, labour unions) This information is used for investment decisions, stewardship evaluation, monitoring activity, regulatory measures.