Question

• With the knowledge you have gain from this course, explain how you would consider utilizing managerial accounting and financial accounting in your business operations.

Answer 1

Management accounting helps managers within a company make decisions.

Also known as cost accounting, management accounting is the process of identifying, analyzing, interpreting and communicating information to managers to help achieve business goals.

The data collected encompasses all fields of accounting that informs the management of business operations relating to the costs of products or services purchased by the company. Management accountants use budgets to quantify the business’ plan of operations.

Performance reports are used to note the deviation of actual results compared what was budgeted.