Unit 6: Lesson 20: Providers & Uses if Management and Financial Accounting

Managerial Accounting

They are known as cost managers or a cost accountant.

Financial Accounting

Known as a controller, financial statement accountant, and sometimes a bookkeeper.

Three Functions of Managerial Accounting

1. Planning

2. Controlling

3. Evaluating

Planning (Managerial)

1, Recognize problems or oppurtunties

2. Identifiy alternatives

3. Analyze Alternatives

4. Choose and implement the best alternative(s).

Long Run Planning

Includes Strategic planning and Capital Budgeting.

Short Run Planning

Includes Production and Process Priortizing and operational budgeting.

Strategic Planning

executive level decision making process. Involves identifying decision making process. Involves identifying organizations mission, goals, right investments, etc…

Capital Budget

Planning of the purchase of assets.

Production & Process Priortizing

Process of maximizing the return on their capital investments.

Operational Budgeting

Short-term planning of a company’s day-to-day revenues, expenses, and profits.

Controlling

Process of tracking actual performance.

Variances

Deviations between actual results and budgeted or standard results.

Evaluating

Involves analyzing results, providing feedback to managers and other employees, rewarding performance, and identifying problems.