prologue Flashcards
financial vs managerial users
external vs internal
financial vs managerial types of reports
financial statements vs internal reports
financial vs managerial rules
GAAP/IFRS vs no rules
financial vs managerial mandatory
yes vs no
financial vs managerial emphasis on
past transactions, objectivity/verifiability, precision, companywide reports vs future, relevance, timliness, segment reports
is managerial accounting required
no but all big companies use it
managerial accounting helps managers with what
planning, controlling, decision making
planning plus example
selecting a course of action and specifying how it will be attained.
ex: replacing labor with automated equipment
plans are often accompanied by what
a budget
controlling plus example
process of keeping the comapny’s activities on track and determining whether planned goals are being met
parts of controlling
system of evaluation, performance report, and investigating variances
system of evaluation
like budgets, used in large businesses to determine if planned objectives are being met
performance report
used to determine whether business segment is meeting goals for sales, profit, and expense
investigating variances
allow managers to find better ways of doing things
decision making
managerial accountants help managers make good decisions
