ACCTG 102 Lecture Notes - Lecture 1: Cost Accounting, Decision-Making, Management Accounting
Document Summary
In acct 120, we discuss that financial statements (f/s) are produced for external users like creditors, stockholders. The f/s represent the principal product of financial accounting. Managerial accounting focuses on reports used for internal use. Managerial accounting (ma) basics: ma provides economic and financial info for managers and other internal users: Assisting management in profit planning and preparing budgets. Management accounting applies to all businesses: manufacturing, service, merchandising, sole proprietor, partnerships and corporations. Managerial vs financial: similarities each deals with economic events of an entity, both require economic events to be quantified, summarized and communicated to interested parties. The differences are driven by needs of the users. The institute of management accountants has established a code of ethical standard to guide. What changes are necessary when find derivations from targeted objectives. A system of budgets, responsibility centers and performance evaluations are used in a large company.
