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Essay Details:
Essay text:
Management accounting produces information for the managers in a company to help fulfill organizational objectives.
“Financial accounting produces reports for external parties such as stockholders, suppliers, banks, and government regulatory agencies,” (p.5) and must adhere to the standards set by the generally accepted accounting practices (GAAP). However, a general purpose accounting system suits both needs.
Managers need the answers to questions that help an organization to achieve their goals. Some examples of these questions would be whether the company is doing well or poorly (scorecard), attention directing questions that focus on comparing actual results to expectations, and problem-solving questions that target specific areas of the organization, and recommend a course of action...
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Common topics in this essay:
- discuss the role of the financial accounting and managerial accounting functions in organizations
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