33:010:275 Chapter Notes - Chapter 1: Management Accounting, Financial Statement, Research And Development

• School: Rutgers University
• Department: Accounting
• Course: 33:010:275
• Professor: S A V I T A S A H A Y

Document Summary

Used by management to plan, evaluate, and control within the organization and to interpretation, assure appropriate use of and accountability for its resources: accounting discipline overview. Managerial accounting measures, analyzes, and reports financial and nonfinancial information to help managers make decisions to fulfill organizational goals. Financial accounting focus on reporting to external users including investors, creditors, and governmental agencies. Financial statements must be based on gaap: differences between managerial and financial accounting. Indirect effects on employee behavior: strategic and management accounting. Strategy specifies how an organization matches its own capabilities with the opportunities in the marketplace to accomplish its objectives. Strategic cost management focuses spe(cid:272)ifi(cid:272)ally o(cid:374) the (cid:272)ost di(cid:373)e(cid:374)sio(cid:374) (cid:449)ithi(cid:374) a fir(cid:373)"s overall strategy. Management accounting helps answer important questions such as: Will we have enough cash to support our strategy or will we need to seek additional sources: management accounting and value. Creating value is an important part of planning and implementing strategy.