ACTG 2020 Chapter Notes - Chapter 1: Triple Bottom Line, Total Quality Management, Lean Accounting
27 Feb 2016
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Document Summary
Managerial accounting is the provision of accounting information for a company"s internal users to manage the organization. 3 broad objectives: provide info for planning, controlling, making effective decisions. Planning requires setting objectives and identifying methods to achieve those objectives. The managerial activity of monitoring a plan"s implementation and taking corrective action as needed is referred to as controlling. Control is usually achieved by comparing actual performance with expected performance. The process of choosing among competing alternatives is called decision making. This managerial function is intertwined with planning and control in that a manager cannot successfully plan and control the organization"s actions without making decisions regarding competing alternatives. But also: motivating managers and other employees towards organization"s goals, measuring/evaluating performance of subunits, activities, managers, and other employees. Managerial accounting subjective info. possible based on decisions, departments, products and jobs. Manage customers"/clients"/beneficiaries" expections: strategic business model and financial business model, define products/services, manage these products in the long run.
