ACC 200 Study Guide - Midterm Guide: Financial Accounting Standards Board, International Accounting Standards Board, Total Quality Management
17 Nov 2017
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Document Summary
New methods of estimating product and service cost and profitability. Evaluating the business from a cross-functional perspective. Providing information useful in improving total quality management. Financial accounting provides information for external users: Investors, creditors, customers, suppliers, government agencies, and labor unions. Investment decisions, stewardship evaluation, monitoring activity, and regulatory measures. Not so closely focused on cost as managerial. Financial statements must follow rules defined by: Managerial accounting produces information for internal users, such as managers, executives, and workers. Managerial accounting identifies, collects, measures, classifies, and reports financial and nonfinancial information to internal users in planning, controlling, and decision making. Today"s companies need focused, accurate information on the cost of products and services produced. Activity based costing (abc) is a more detailed approach to determine the cost of goods and services. Abc improves costing accuracy by emphasizing the cost of the many activities or tasks that must be done to produce a product or service.
