Unit 1 Introduction to Managerial Accounting
American InterContinental University
In this report we will be going over the objectives and characteristics of an internal accounting system, the importance of accounting information to the company, and the ethics in business and the managing accountant’s role.
“HOW THE INTERNAL ACCOUTNING SYSTEM WORKS ON THE INSIDE” Introduction: The managerial accounting system is developed to give data that management can use to make accurate decisions (Shanker, N.D.). For i.e. manufacture businesses uses the system to help them with the cost and managing the manufacturing procedure (Shanker, N.D.). Hospitals uses the system to help them with insurance billing and other in-house needs (Shanker, N.D.). Internal managerial accounting system is totally different with different purposes for each business that it’s working for, giving for functionalities and the results to that company (Shanker, N.D.). The objectives of an internal accounting system are made to set a company’s goal on a daily basis and long-term goals is to make sure that a company’s accounting department can plan ahead for the future financial projects (ehow.com, N.D. or N.A.). The internal accounting system has to be sure that they have certain characteristics to be able to get each of those accounting objectives and to lighten the work load on all accounting workers that’ll be using this system (ehow.com, N.D. or N.A.). For the short-term objectives of an internal accounting system has to do with finishing the daily accounting tasks, for i.e. finishing payroll for the businesses workers and maintaining the income amount and purchases that the company has made (ehow.com, N.D. or N.A.). Having the monthly budget reports for each department is an important responsibility (ehow.com, N.D. or N.A.). The internal accounting system must make these methods easy for the accounting workers to use...
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