COMM-2016EL Study Guide - Midterm Guide: Management Accounting

• School: Laurentian
• Department: Commerce and Administration
• Course: COMM-2016EL
• Professor: Kayla Levesque

Document Summary

Management accounting is the process of identifying, measuring, accumulating, analyzing, preparing, interpreting and communicating information that helps managers fulfill the organizations objectives. Management accounting exists because managers require information to make decisions. Unlike financial accounting, management accounting focusses on internal users. There are three types of decisions that must be made by management accountants, operational control, management control and strategic planning decisions. Operational control decisions ensure tasks are carried out efficiently and effectively. Management control decisions ensure resources are used efficiently and effectively and strategic planning decisions focus on the objectives of the organization and the manner in which resources are purchased and utilized. Enables internal and external parties to evaluate an organizations performance and position. Attention directing- reporting and interpreting of information that helps managers to focus on operating problems, imperfections, inefficiencies and opportunities. Commonly associated with current planning and control and with the analyses and investigation of recurring routine internal accounting reports.