Big4WallStreet Finance Blog — #management accounting
Management Accounting (Part 2)
accounting cost accounting cost per unit costs fixed costs management accounting semi variable costs variable costs
Management Accounting
accounting break even analysis budgeting controlling cost decision making finance management accounting planning
1. Intro to Management Accounting a. Definition “Management accounting is a system which analyses historical, actual and forecast data to provide managers the information for decision making.” b. The management accounting department The department provides management information for: Planning: budget for the year, budget updates during the year, long term plan beyond the year. Controlling: how do the revenues and costs compare with the budgeted ones and those of the previous periods. What are the variances? What are the reasons for the variances? Decision Making: profitability assessment, buildup of selling prices, product costs comparisons (inventory, manufacturing, labor etc..), make...
Why? Financial & Management Accounting
#financial accounting #financial management #financial modeling #management accounting
Financial accounting statements are prepared for the benefit of those outside the company.
WHY?
Are you profitable?
Do you collect your “net profit”?
What are you worth?
Do you collect your “net worth”?