review materials
Management Advisory Services JRMORENO
Management Accounting Framework
Managerial Accounting and Management’s Need for Accounting Information
Review of the working definition of Management (or managerial) Accounting
Management accounting is the application of appropriate techniques and concepts in processing the historical and projected economic data of an entity to assist management in establishing a plan for reasonable economic objectives making of rational decisions with a view toward achieving these objectives. (AAA Committee on Management Accounting)
The Purpose of Management Accounting
To provide Information to persons within an organization that enables them to make informed judgments and effective decisions which further the organization’s goals
Basic functions:
1. To assist management in determining policies and in making plans.
2. To assist management in the planning, directions coordination, and control of operations.
3. To maintain records and procedures that will adequately protect all interests related to the business.
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RQ1. Which of the following is not a characteristic of managerial accounting?
a. Its purpose is to assist managers in planning and controlling business operations.
b. Information must be developed in conformity either with generally accepted accounting principles or with income tax rules
c. Reports are used primarily by insiders rather than by persons outside of the business entity.
d. Information may be tailored to assist in specific managerial decisions.
RQ2. Which of the following is a distinguishing feature of managerial accounting?
a. It describes the operating results of a business to the creditors of the business.
b. It is designed to assist managers in planning and controlling the operations of a business.
c. It focuses upon overall performance of the entire company, not upon individual
Management Accounting Framework
Managerial Accounting and Management’s Need for Accounting Information
Review of the working definition of Management (or managerial) Accounting
Management accounting is the application of appropriate techniques and concepts in processing the historical and projected economic data of an entity to assist management in establishing a plan for reasonable economic objectives making of rational decisions with a view toward achieving these objectives. (AAA Committee on Management Accounting)
The Purpose of Management Accounting
To provide Information to persons within an organization that enables them to make informed judgments and effective decisions which further the organization’s goals
Basic functions:
1. To assist management in determining policies and in making plans.
2. To assist management in the planning, directions coordination, and control of operations.
3. To maintain records and procedures that will adequately protect all interests related to the business.
`````````````````````````````````````````````````````````````````````````````````
RQ1. Which of the following is not a characteristic of managerial accounting?
a. Its purpose is to assist managers in planning and controlling business operations.
b. Information must be developed in conformity either with generally accepted accounting principles or with income tax rules
c. Reports are used primarily by insiders rather than by persons outside of the business entity.
d. Information may be tailored to assist in specific managerial decisions.
RQ2. Which of the following is a distinguishing feature of managerial accounting?
a. It describes the operating results of a business to the creditors of the business.
b. It is designed to assist managers in planning and controlling the operations of a business.
c. It focuses upon overall performance of the entire company, not upon individual