ACCOUNTG 331 Lecture Notes - Lecture 1: Customer Service, Management Accounting, Financial Accounting
24 Jan 2017
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Document Summary
Management accounting measures, analyzes, and reports financial and nonfinancial information to help managers make decisions to fulfill organizational goals. Financial accounting focuses on reporting to external users including investors, creditors, banks, suppliers, and governmental agencies. Financial statements must be based on gaap: financial statements are a legal requirement in the united. States: past-oriented (reports on 2013 performance prepared in 2014, annual and quarterly reports on company as a whole. Strategy and management accounting: strategy specifies how an organization matches its own capabilities with the opportunities in the marketplace. There are two broad strategies: cost leadership and. Goal of all companies: increase its market share: strategic cost management describes cost management that specifically focuses on strategic issues, management accounting helps answer important questions, such as: Non-competitive markets: companies in non-competitive markets can set prices how they wish; they employ cost managers, companies in competitive markets with lots of similar products have set prices.
