Unit 1 Managerial Accounting

In: Business and Management

Submitted By marinewife
Words 499
Pages 2
Unit 1 IP
By Amber Brooker
June 14, 2013
ACCT310

Abstract
In this essay I am a manager in an accounting department and would like to hire another managerial accountant. The CEO is not convinced, so I must convince him.

Manager Report
Accounting has two different purposes: the first is reporting for external users and other is for internal users like management. Because of this, accounting can be put into two different categories: financial accounting and managerial accounting.
Financial Accounting gives us a view of the financial position of the company. It is management’s responsibility to keep the accounting records in a way that gives us the correct view of the company; it must be free from any material misstatement, which may distort the reader. In order for it to be conveyed properly, management has to follow certain rules and regulation such as GAAP, IAS, etc. Managerial accounting helps with the planning & control, as well as the decision making activities of the company. The success of the business depends on the planning and the correct decision making in keeping the facts and figures related to the situation, this is what the managerial accounting does.
So, Financial Accounting is used for external reporting purpose and the managerial accounting is used for internal reporting purpose. Financial Accounting emphasizes on the financial aspect and the Managerial Accounting is the planning and decision making aspect.
Most of the time, reports are created or made for management purposes and don’t meet the requirement of certain standards, like inventory valuation. The absorption costing method is allowed – but only while the under cost accounting reports are created by using direct costing- because it is not allowed to report by this method. But, if the adjustment is done for the difference in direct costing and absorption costing, then…...

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