Touro University International
ACC 202
Module 1 Case Assignment
Managerial accounting provides information to decision makers, which is one factor in the decision making process of corporate managers. It is the process “process of identification, measurement, accumulation, analysis, preparation, interpretation and communication of information used by management to plan, evaluate and control within an entity and to assure appropriate use of and accountability for its resources” (Wikipedia). Managerial accounting is concerned with the provisions and use of accounting information to managers within organizations, to assist management making decisions and managerial control functions.
Management accountants record and analyze the financial information of the companies for which they work. Among their other responsibilities are budgeting, performance evaluation, cost management, and asset management. Usually, management accountants are part of executive teams involved in strategic planning or the development of new products. They analyze and interpret the financial information that corporate executives need in order to make sound business decisions. They also prepare financial reports for other groups. Management accountants have dual reporting relationship in today’s corporation. They are responsible to the business management team while at the same time also have reporting relationships and responsibilities to the corporation’s finance organization.
Financial accountancy is the branch of accountancy concerned with the preparation of financial statements for external decision makers, such as stockholders, suppliers, banks and government agencies. The fundamental need for financial accounting is to reduce principal-agent problem by measuring and monitoring agent’s performance.
In contrast to financial accountancy information, management accounting information is confidential and used by management, instead of publicly reported; forward-looking,...