《management企业管理类英文版PPT课件5.pptVIP

1-* * There are seven key differences between managerial accounting and financial accounting: ? Users: Financial accounting reports are prepared for external parties, whereas managerial accounting reports are prepared for internal users. ? Emphasis on the future: Financial accounting summarizes past transactions. Managerial accounting has a strong future orientation. ? Relevance of data: Financial accounting data should be objective and verifiable. Managerial accountants focus on providing relevant data even if it is not completely objective and verifiable. ? Less emphasis on precision: Financial accounting focuses on precision when reporting to external parties. Managerial accounting aids decision makers by providing reasonable estimates more quickly, rather than waiting for precise data later. ? Segments of an organization: Financial accounting is concerned with reporting for a company as a whole. Managerial accounting focuses more on the segments of a company. Examples of segments include product lines, sales territories, divisions, departments, etc.. ? Generally Accepted Accounting Principles (GAAP): Financial accounting conforms to GAAP. Managerial accounting is not bound by GAAP. ? Managerial accounting – not mandatory: Financial accounting is mandatory because various outside parties require periodic financial statements. Managerial accounting is not mandatory. 1-* * Learning objective number 2 is to understand the role of management accountants in an organization. 1-* * Decentralization is the delegation of decision-making authority throughout an organization by giving managers the authority to make decisions relating to their area of responsibility. An organization chart shows how responsibility is divided among managers and it shows formal lines of reporting and communication. 1-* * An organization chart also shows line and staff positions in an organization. A person in a line position i