BUS-111 Lecture Notes - Lecture 3: Cost Accounting, Financial Statement, Management Accounting
Document Summary
Financial accounting measures in dollars, the activities of an org: used internally by managers to validate activities that were done well and highlight areas needing adjustments. Sec requires financial statements for public company, whereas private companies only need it for audits and obtaining loans. Cost accounting takes quantitative approach, where managerial takes quantitative and qualitative approach. Financial accounting prepared in specific intervals of time whereas managerial and cost are prepared on as-needed basis. (ex) cost accountants determines company will save 0. 50 per component if purchased elsewhere. Managers will use 0. 50 pc saving as well as nonfinancial, to make decision whether to go forward. Cost accounting = number, managerial accounting is a decision. Offer wide range of accounting, auditing, consulting, and tax prep services. Provide info for internal users and decision makers, implement and monitor internal controls. (ex) calculating/tracking costs of providing goods and services, analyze financial performance, develop budgets.
