Accounting Is Easy

CHAPTER 1 : INTRODUCTION TO MANAGERIAL ACCOUNTING

First of all, what is accounting?

Accounting is a systematic process of identifying, recording, measuring, classifying, verifying, summarizing, interpreting and communicating financial information.

Do you know what is managerial accounting?

Managerial accounting is the practice of identifying, measuring, analyzing, interpreting and communicating financial information to managers for the pursuit of an organization's goals. It varies from financial accounting because the intended purpose of managerial accounting is to assist users internal to the company in making well-informed business decisions.

Then, let proceed to the main topic....

           

Let us see the comparison between Managerial and Financial Accounting..

MANAGERIAL ACCOUNTING	ASPECTS	FINANCIAL  ACCOUNTING
Internal	Type of Users	External
Future Oriented	Timing of Report	Past performance
Special purpose for specific decision	Purpose report	General purpose –overall
Financial & Non Financial	Type of report	Financial
Pertains to sub-units of the business, product or customer	Focus of report	Pertains to business as a whole
Many times as required by the management	Frequency of report	Once- at the end of accounting period
No Standardized forms – Depend on management needs	Form of report produced	Standardized report
No need to comply with accounting standard	Rules and Regulation	Need to comply with accounting standard

Now you know the comparison between Managerial and Financial Accounting 

So now, let see the functions of MANAGEMENT...

THE FUNCTIONS OF MANAGEMENT

NEXT, Let see the....

CHARACTERISTIC OF MANAGERIAL ACCOUNTING INFORMATION

You almost reach the final of the topic......

Next, let's see the 

ROLES OF MANAGEMENT ACCOUNTING INFORMATION

DECISION MAKING	Process of selecting a logical choice from the available options.
PLANNING	Helps in provide the product information you want to sell, the market and appropriate price.
BUDGETING	Provides past performance data as a guide for future performance planning.
THE MOTIVATION PROCESS	Budgeting and performance reports can affect the motivation of workers in an organization.

Last but no least,

Another important things that you should know in this topic is..

ROLES OF MANAGEMENT ACCOUNTANT

And that concludes our first chapter of the Managerial Accounting, "Introduction to Managerial Accounting" Matriculation Syllabus. Hope that these notes could be beneficial to all candidates who are currently studying in the matriculation programme.

To strengthen your understanding even more, you can try this cross-word puzzle to test how much you gained from these notes or how much you still need to improve to be the best in this chapter.

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