Final Essay – Managerial Accounting
Discussing the importance of managerial accounting for managers and business leaders who are not accountants. Understanding accounting principles, job costing, decisions for capital investments, and central versus decentralized business units.
In business, accounting principle is necessary for report annual and quarterly reports, IRS, shareholders, creditors. We can understand how we earning money through out the accounting method. Unfortunately all managers and leaders are not accountant. Then what should we do? I want to talk about that subject. Managerial Accounting is the provision of accounting information for a company’s internal users.Unlike financial accounting, managerial accounting is not bound by any formal criteria such as generally accepted accounting principles. The detailed formulation of action to achieve a particular end is the management activity called planning. The managerial activity of monitoring a plan’s implementation and taking corrective action as needed is referred to as controlling. Financial Accounting is primarily concerned with producing information for external users, including investors, creditors, customers, suppliers, government agencies, and labor unions. Financial accounting’s orientation is historical and is used for investment decisions, stewardship evaluation, monitoring activity, and regulatory measures. Financial statements must conform to certain rules and conventions defined by agencies like the Securities and Exchange Commission (SEC), the Financial Accounting Standards Board (FASB), and the International Accounting Standards Board (IASB). Managerial Accounting produces information for internal users, such as managers, executives, and workers. Thus, managerial accounting could be properly called internal accounting, and financial accounting could be called...