Managerial Accounting Analysis of Concepts and Techniques
Managerial Accounting Analysis of Concepts and Techniques
Managerial Accounting BUS 630
Managerial Accounting Analysis of Concepts and Techniques
Introduction/Thesis Statement Managerial accounting is a concept used in businesses to manage internal systems. Understanding the importance of effective decision making, planning and control creates a foundation for value within the company on a more in depth level. Planning and controlling is measured by performance based on budgeting accounts. Understanding the concepts and techniques used in managerial accounting helps to insure functioning operations within each department and has the ability to create a completive edge. Competitively speaking, managerial accounting gives employees who understand the techniques and concepts an advantage towards promotions. Companies are seeking employees that will grow with the company and become an asset.
Part 1
Managerial Accounting Defined and Explained Managerial accounting also called management accounting is the part of accounting that provides economic and financial information for managers and other internal users (Etramway, 2007). Managerial accounting provides valuable information to managers who direct and control operations inside the organization. Managerial accounting is contrasted with financial accounting that provides valuable information to stockholders, creditors and other members that are outside of the organization (Geense, 2005). Management uses managerial accounting to determine what it needs to run the business. Managerial accounting provides information on the costs of an organization’s products and services, budgets, performance reports and activities such as planning and controlling which can direct managers in the right direction when making decisions about products costs, selling prices, unit quantities and demands on capability recourses. Outside organizations such as Securities and Exchange Commission (SEC), Internal Revenue
Managerial Accounting BUS 630
Managerial Accounting Analysis of Concepts and Techniques
Introduction/Thesis Statement Managerial accounting is a concept used in businesses to manage internal systems. Understanding the importance of effective decision making, planning and control creates a foundation for value within the company on a more in depth level. Planning and controlling is measured by performance based on budgeting accounts. Understanding the concepts and techniques used in managerial accounting helps to insure functioning operations within each department and has the ability to create a completive edge. Competitively speaking, managerial accounting gives employees who understand the techniques and concepts an advantage towards promotions. Companies are seeking employees that will grow with the company and become an asset.
Part 1
Managerial Accounting Defined and Explained Managerial accounting also called management accounting is the part of accounting that provides economic and financial information for managers and other internal users (Etramway, 2007). Managerial accounting provides valuable information to managers who direct and control operations inside the organization. Managerial accounting is contrasted with financial accounting that provides valuable information to stockholders, creditors and other members that are outside of the organization (Geense, 2005). Management uses managerial accounting to determine what it needs to run the business. Managerial accounting provides information on the costs of an organization’s products and services, budgets, performance reports and activities such as planning and controlling which can direct managers in the right direction when making decisions about products costs, selling prices, unit quantities and demands on capability recourses. Outside organizations such as Securities and Exchange Commission (SEC), Internal Revenue
References: Accounting Coach. (2013). Activity Based Costing. Retrieved July 13, 2013, from Accounting Coach: http://www.accountingcoach.com/online-accounting-course/35Xpg01.html Cooper, R., & Slagmulder, R Etramway. (2007, June 25). Introduction to Managerial Accounting. Retrieved 12 2013, July, from YouTube: http://www.youtube.com/watch?v=pBCRmjnwWgo Geense, I Johnson, R. (2013). Managerial Accountant 's Role in Business Planning. Retrieved July 10, 2013, from Chron: http://smallbusiness.chron.com/managerial-accountants-role-business- planning-38322.html Kershaw, R Mohr, A. (2013). Managerial Accounting Techniques. Retrieved July 101, 2013, from eHow oney: http://www.ehow.com/info_8488985_managerial-accounting-techniques.html Schneider, A Shpak, S. (2013). Five Types of Budgeting in Managerial Accounting . Retrieved July 14, 2013, from Chron: http://smallbusiness.chron.com/five-types-budgets-managerial-accounting- 50928.html Snyder, S Vitez, O. (2013). What is the Role of MAnagement Accounting. Retrieved July 11, 2013, from eHow money: http://www.ehow.com/about_5523550_role-management-accounting.html Vitez, O Wright, N. (2009, July). Quality Control. Retrieved July 13, 2013, from Peoria Magazines.com: http://www.peoriamagazines.com/ibi/2009/jul/quality-control-accounting Thank you Dr