ACC 406 Lecture Notes - Lecture 1: Activity-Based Costing, Management Accounting, Industrial Engineering
Document Summary
Provide accounting information for a company"s internal users. Not bound by any formal criteria; gaap, ifrs. Apply to all types of organizations; service and not-for-profit (cid:1) (cid:1) (internal accounting system) (cid:1) (cid:1) (cid:1) organizations. Three main objectives: (cid:1) objectives (cid:1) (cid:1) (cid:1) (cid:1) (cid:1) To provide information for planning the organization"s actions. Setting objectives and identifying methods to achieve those. To provide information for controlling the organization"s actions. Monitoring a plan"s implementation and taking corrective action so the plan is being carried out. Often achieved by comparing actual performance with expected performance. Targeted users: external (investors, creditors, customers, suppliers, govt. agencies, & labour unions) Type of information: produces objective and verifiable information (financial statements) Targeted users: internal (managers, executives & workers) Restrictions: not required to follow any guidelines. Type of information: financial and nonfinancial information (more subjective), includes historical but focus on future events. Degree of aggregation: performance of entities, products lines, departments, and managers.
