COMM 305 Lecture Notes - Lecture 3: Enterprise Resource Planning, Double-Entry Bookkeeping System, Corporate Social Responsibility
23 Sep 2017
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Document Summary
Managerial accounting (aka management accounting) is needed in all types of businesses (service, merchandising, manufacturing) bc it provides tools that help management make decisions and evaluate their effectiveness. It applies to all forms of business organization (proprietorship, partnerships, corporations) Needed in not-for-profit entities as well as profit-oriented ones. Primary users: internal users (officers, department heads, managers, supervisors) Type & frequency: internal, as often as needed. Purpose: provide special-purpose information for a particular user for a specific decision. Content: the reporting standard is relevant to the decision being made, it may extend beyond the double entry accounting system. Planning: requires management to look ahead and to establish objectives. Directing: involves coordinating a company"s diverse activities and human resources to produce a smoothly running operation. Controlling: process of keeping the activities on track. Companies are evaluating their performance with regard to their corporate social responsibility.
