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What is the primary criterion for the preparation of managerial accounting reports?
Wiki User
∙ 12y ago
meet managers need
Wiki User
∙ 12y ago
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What are the distinguishing features of managerial accounting?
How would you describe the difference between financial and managerial accounting? First, the primary users of reports in financial accounting is external users: stockholders, creditors, and regulators. The primary users of managerial accounting is internal users: officers and managers. Second, the types and frequency of reports for financial accounting uses financial statements and they are quarterly and annually. Managerial accounting uses internal reports and as frequently as needed. Third, the purpose of reports for financial accounting is general-purpose and managerial accounting is special-purpose for specific decisions. Fourth, content of reports for financial accounting is limited to double-entry accounting and cost data, highly aggregated (condensed), pertains to business as a whole, and generally accepted accounting principles. Managerial accounting is extended beyond double-entry accounting to any relevant data, very detailed, pertains to subunits of the business, and standard is relevance to decisions. Last, financial accounting verification process is audit by CPA and managerial accounting verification process is no independent audits.
What are the two primary organizations in the US that are responsible for setting standards related to the preparation of accounting information?
Financial Accounting Standards Board (FASB) and Public Company Accounting Oversight Board (PCAOB)
What is the primary purpse of accouting?
what is the primary purpose of accounting
What are the primary objectives of the accounting function in an organization?
The primary objectives of the accounting function in an organization are to process financial information and to prepare financial statements at the end of the accounting period.
Who are the primary users of financial accounting information?
creditors
What is the primary criterion for the preparation of managerial reports?
meet managers need
What are the distinguishing features of managerial accounting?
How would you describe the difference between financial and managerial accounting? First, the primary users of reports in financial accounting is external users: stockholders, creditors, and regulators. The primary users of managerial accounting is internal users: officers and managers. Second, the types and frequency of reports for financial accounting uses financial statements and they are quarterly and annually. Managerial accounting uses internal reports and as frequently as needed. Third, the purpose of reports for financial accounting is general-purpose and managerial accounting is special-purpose for specific decisions. Fourth, content of reports for financial accounting is limited to double-entry accounting and cost data, highly aggregated (condensed), pertains to business as a whole, and generally accepted accounting principles. Managerial accounting is extended beyond double-entry accounting to any relevant data, very detailed, pertains to subunits of the business, and standard is relevance to decisions. Last, financial accounting verification process is audit by CPA and managerial accounting verification process is no independent audits.
What are the two primary organizations in the US that are responsible for setting standards related to the preparation of accounting information?
Financial Accounting Standards Board (FASB) and Public Company Accounting Oversight Board (PCAOB)
Which climate group has precipitation as its primary criterion?
B Group
What is the primary accounting setting body in the US?
The FASBis the primary accounting setting body in the US
What is the primary purpse of accouting?
what is the primary purpose of accounting
Differences and similarities between managerial accounting and Financial Accounting?
* Cost accounting relies on financial accounting information (unbiased, support material) * both are concerned with responsibility or stewardship to the organization: financial accounting has responsibility to the whole company while cost accounting is concerned with responsibility for parts (costs and revenues) * Both require accounting information that must be relevant, timely, and accurate.
What are the primary objectives of the accounting function in an organization?
The primary objectives of the accounting function in an organization are to process financial information and to prepare financial statements at the end of the accounting period.
Who are the primary users of financial accounting information?
creditors
Who are the primary users of management accounting information?
Management
Does accounting fall in the business primary occupation?
Partially accounting fall under the business primary occupation also we can say accounting is "the language of business". Accounting is an essential business function that involves recording transactions, summarizing data, and then reporting and analyzing the results on a periodic basis.
Could you use managerial accounting tools to assess the profitability of an organization other than a manufacturing business or are the topics you are learning only related to manufacturing?
Managerial accounting deals with financial information resulting from a company's production process or other internal functions. Where financial accounting focuses on measuring a company's overall financial performance, managerial accounting focuses on individual business functions or processes. College courses typically focus on a few important areas of managerial accounting relating to accounting tools most commonly used by business owners and managers.Cost AllocationsCost allocation refers to the attribution of business costs to the goods and services the company produces. This process can be based variably on job-, process-, production output- or activity-based calculations. Managerial accountants review expenditures relating to materials, labor and overhead, breaking down the data to calculate how much of each resource makes it into each item produced. Many instructors focus on these concepts extensively, since each method usually includes several steps that are technically complex.BudgetsBudgets are an accounting tool that companies use to outline future cash expenditures. Managerial accounting not only focuses on overall company budgets, but also on specific variances relating to the production process. Accountants attempt to trace every budget variance to determine whether variances are favorable or unfavorable. Unfavorable variances are not necessarily bad if the company needs to produce more items to meet demand. Instructors often create exercises in which students complete individual budgets for business processes and compile one company budget from this information.ForecastingForecasting in managerial accounting typically relates to a break-even or cost/volume/profit analysis. Accountants prepare this information to determine how many items a company must sell to pay for business expenditures. This information can also tell owners and managers how many items a company must sell to make a certain level of profit. While other forecast methods may be taught, these are the primary approaches found in managerial accounting. Instructors typically give students basic information and require them to calculate certain sales figures.
