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MANAGERIAL ACCOUNTING

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Managerialaccounting, or management accounting, is a set of practices and techniques aimed at providing managers with financial information to help them make decisions and maintain effective control overcorporate resources. For example, managerial accounting answers such questions as:

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www.FBT-Global.com/CIMA-London• What is the company's average cost per unit of labor (enterprise wide or within specific departments)?
• How many dollars in sales does each marketing dollar bring in?
• What is the requiredrate of return to make a new investment worthwhile?
• Which activities require the greatest expenditures and which earn the greatest profits (and how can the organization maximize the former andminimize the latter)?
Managerial accounting procedures are intended primarily to supply knowledge to decision makers within an organization. Financial accounting, in contrast, is concerned withproviding information to stockholders, government agencies, creditors, and others who are outside the organization. A corollary of that difference is that financial accounting procedures generally must...