Question

Exercise 2-15 Introduction to managerial accounting

Answer 1

Introduction to Mangerial Accounting:

Managerial accounting is concerned with generating information for internal users including all levels of management and others within the organization for their decision making . The main activites carried out by managers are planning, directing and motivating, and controlling. All these activites involves decision making . Managerial accounting is a resource for these decision making . So the main users of mangerial accounting is managers who plan for and control an organisation.

The managerial accounting is manily focuses on the needs of the manager, and places more emphasis on the future and emphasis on relevance for planning and control . It is is not governed by GAAP and no prescribed format for reporting hence it is not mandatory for an organisation.