Managerial accounting focuses on the generation of information for use by management in both making decisions and establishing control. The internal accounting system is generally designed to serve both purposes, but this gives rise to a trade-off in the system. One system that is designed to perform two functions cannot do so as well as a system designed to serve just one function. What tends to happen is that the ability to provide information useful for decision-making is partially sacrificed to provide better control or vice versa.
Write a brief [2-3 page] paper stating whether internal accounting systems should be focused on both decision-making and control, or just one, or on neither - and in that case, indicate what you think should be the focus of internal accounting systems.
Managerial accounting focuses on the generation of information for use by management in both making decisions and establishing control. The internal accounting system is generally designed to serve both purposes, but this gives rise to a trade-off in the system. One system that is designed to perform two functions cannot do so as well as a system designed to serve just one function. What tends to happen is that the ability to provide information useful for decision-making is partially sacrificed to provide better control or vice versa.
Write a brief [2-3 page] paper stating whether internal accounting systems should be focused on both decision-making and control, or just one, or on neither - and in that case, indicate what you think should be the focus of internal accounting systems.
