ACC 406 Chapter Notes - Chapter 1: Cost Leadership, Formal System, Financial Accounting

• School: Ryerson University
• Department: Accounting
• Course: ACC 406
• Professor: All Accounting410

Document Summary

Managerial accounting for internal users (managers, executives and workers) Not bound by any formal system such as gaap or ifrs. Deals with specific decisions, departments, products and jobs. Financial accounting is for external users (investors, creditors and suppliers) Three objectives: 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. Planning requires setting objectives and identifying methods to achieve those objectives. Controlling refers to a plans implementation and monitoring by managers to ensure that it is being carried out as intended. Based on feedback managers may decide to take corrective action and do midstream replanning. Decision making is the process of managers choosing among competing alternatives. More detailed approach to determining the cost of goods and services. Emphasizing cost of activities / task that must be done to produce a product or offer a service.