ACCT 2102 Lecture 1: ACCOUNTING AS A TOOL FOR MANAGEMENT
Document Summary
Chapter 1: accounting as a tool for management. The process of identification, measurement, accumulation, analysis, preparation, interpretation, and communication of financial information used by management to plan, evaluate, and control within an organization and to assure appropriate use of and accountability for its resource. (old definition) A profession that involves partnering in management decision making, devising planning and performance management systems, and providing expertise in financial reporting and control to assist management in the formulation and implementation of an organization"s strategy (new definition) Financial and nonfinancial data from operations -> is processed by decision makers. As needed, even if information is not exact. Managerial acct focus on making decision that affect the future performance of the business while financial acct focus on the past decision and the effect on current performance of the business. Things they do: planning, controlling, events you do to make sure the plan stay on track, evaluating, decision making. Focus on internal decision making -> managerial.
