ACCT 2001 Chapter : Chapter 14
Document Summary
Managerial accounting: provides economical and financial information to managers and internal users, applies to all types and forms of businesses, managerial vs. financial, similarities, deal with economic events of a business. Determining unit cost of manufacturing a prodeuct is managerial and reporting total cost of goods manufactured and sold is financial. Require economics events of the company to be quantified and communicated to interested parties: differences, managerial. Users internal users (officers and managers. Types and frequency of reports internal and as frequently as needed. Content pertains to subunits of the business, very detailed, standard is relevant to decisions. Verification process- no independent audits: financial. Users external users (stockholders, creditors, regulators) Types and frequency of reports financial statements and quarterly and annually. Contents pertains to business as a whole, highly condensed, limited to double entery accounting and cost data, generally accepted accounting prinicpals: management functions. Verification process audited by cpa: planning.
