Introduction to Managerial Accounting

After studying this chapter you should be able to:

• Identify the major differences and similarities between financial and managerial accounting.
• Understand the role of management accountants in an organization.
• Understand the importance of upholding ethical standards.
    
  
  
  1. What is managerial accounting?
     Managerial accounting is concerned with providing information to managers-that is, people inside an organization who direct and control its operation...... What is managerial accounting
     
      
  2. Difference between financial and managerial accounting (Financial accounting vs. managerial accounting):
     Financial accounting reports are prepared for the use of external parties such as shareholders and creditors, whereas managerial accounting reports are prepared for managers inside the organization...... Click here to read full article.
     
      
  3. Need for managerial accounting information:
     Every organization-large and small-has managers. Someone must be responsible for making plans, organizing resources, directing personnel, and controlling operations.......Click here to read full article.
     
      
  4. History of managerial accounting:
     Managerial accounting has its roots in the industrial revolution of the 19th century. During this early period, most firms were tightly controlled by a few owner-managers who borrowed based on personal relationships and their personal assets......Click here to read full article.
     
      
  5. Code of conduct for management accountants:
     Practitioners of management accounting and financial management have an obligation to the public, their profession, the organization they serve, and themselves, to maintain the highest standards of ethical conduct......Click here to read full article.
     
      
  6. The certified management accountants (CMA):
     A management accountant who possesses the necessary qualification and who possesses a rigorous professional exam earns the right to be known as a certified Management Accountant (CMA)......Click here to read full article.