Accounting Books National Open University of Nigeria PDF Pages English This note consists basically of the treatment of accounting transactions according to the provisions of relevant accounting standards. The aim of this note is to introduce you to basic principles of accounting and to understand how financial documents are posted into accounting record in order to determine the profit or loss of an organisation.
Regardless of your college major or intended career path, most of you will become managers one day. Fortunately, none of you will likely fall into this persona given that you have taken the initiative to attend college. As you learned in financial accounting, accounting is the language of business.
As a manager, if you do not understand the language, you will not be able to use it to make decisions. Understanding managerial accounting will help you move up the ladder more quickly, regardless of your chosen career path.
As an student in a college class, you likely want to how your performance will be evaluated. Your expectations in a business environment are similar.
You want to know what your boss will expect, i. The more you know about accounting, the more quickly you will advance in a company. Ultimately, accounting is the language of business. Tools of Performance Measurement Managers use a number of tools to measure performance.
The approach to measurement depends on what will be measured and against what benchmark the performance will be measured. A benchmark can be viewed as a goal to achieve, or a standard that management expects its employees to achieve. A significant management component involves planning, which is accomplished through the use of budgets.
Recall from financial accounting that the primary purpose of being in business is to make a profit, which ultimately adds value to a company.
For example, as a manager you may be given a budget that tells you how much to spend, how many units to produce, or how many customers to process. Budgets become benchmarks that management will use as measurement tools. At the end of the period, your actual performance will be compared to the budget amounts to see how well you have performed.
You must understand what the numbers in budgets represent and how the managers that prepare budgets determine the amounts. This is another link to maximizing your performance evaluation.
For example, if a large portion of your grade in your managerial accounting course was based on attendance, you would maximize performance by attending class every day. It will provide you with an understanding of what goes into the benchmarks by which you will be evaluated.
What is Managerial Accounting? Managerial accounting is often referred to as management accounting. Planning primarily occurs in the budgeting process. Controlling occurs when managers compare actual performance with budgeted amounts to identify differences and then act upon any differences that appear to be significant.
Comparing Managerial and Financial Accounting So how does managerial accounting differ from financial accounting? Both provide information to users to make decisions. One difference between the two concerns which users for which the information is provided.
Financial accounting provides information to stockholders, creditors, and others who are external to the company.
Managerial accounting focuses on users inside the company. This internal group includes all levels of management, and sometimes various employee groups. A number of other distinctions exist between financial and managerial accounting. These appear in Figure that follows. Compared to financial accounting, managerial accounting: A manager might decide to compare administrative costs at the east and west divisions, determine the cost difference if a new type of plastic is used to manufacture rulers, or any number of other non-standard analyses that may help with decision-making.
External users want to know what actually happened, not what is being planned, or how a company analyzes its costs.
Emphasis on Past or Future Managerial accounting emphasizes the future, while the past is the emphasis with financial accounting. What appears in financial accounting reports is historical in nature, representing results of transactions that have already occurred.
Managerial accounting is often considered forward-looking in that much of it represents expectations for the future. While managerial accounting often considers past results as a basis for estimating future performance, financial accounting specifically avoids including forecasted information to avoid misleading external users.
Timeliness Managerial accounting is more timely than financial accounting in that analyses are created as needed, rather than periodically at the end of accounting periods as occurs with financial accounting.
Timely reporting often forces the use of estimated amounts which may not be as accurate as actual results. This sacrifice of accuracy is given up in order to get information more quickly so decisions can be made as quick as possible. Emphasis Managerial accounting focuses on small components such as segments and products, while financial accounting focuses on the company as a whole.Learn managerial accounting online.
Free notes on cost bahaviour, cost volume profit analysis, capital budgeting and more. Introduction to Managerial Accounting, 7/e by Brewer/Garrison/Noreen is based on the market-leading text, Managerial Accounting, by Garrison, Noreen and Brewer.
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Management accounting or managerial accounting is the process of identifying, analyzing, recording and presenting financial information that is used for internally by the management for planning, decision making and control. Introduction to Managerial Accounting [Peter C. Brewer Professor, Ray H Garrison, Eric Noreen] on ashio-midori.com *FREE* shipping on qualifying offers.
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