BU247 Chapter Notes -Management Accounting, Financial Statement, Cost Accounting
Document Summary
Management accounting as defined by the institute of mgmt. Accountants: profession that involves: partnering in management decision making, devising planning and performance systems, providing expertise in financial reporting and control to assist management in the formulation and implementation of strategy. Nonfinancial management accounting info includes measures related to customer satisfaction and loyalty, process quality and timeliness, innovation, and employee motivation. Financial accounting retrospective; reporting and summarizing in financial terms the results of past decisions. Primarily orientated to external stakeholders, such as investors, creditors, regulations, and tax authorities stresses the form in which it is communicated. Rules for how the content gets developed and how the content will be presented. Both retrospective and prospective; incorporates forecasts and estimates about future events, as well as feedback about past. Primarily orientated to needs of employees and managers inside the organization. No prescribed form or rules about its content; that gets determined by manager judgments about what best meets their needs for actionable info.
