Definition of accounting, Managerial Accounting

Assignment Help:

Definition of accounting

Accounting is the procedure of recognizing measuring and communicating economic information to allow informed judgments and decisions by the user’s information.

It is therefore anxious with providing information which will help decision makers in making fine decisions.

To understand accounting one should understand:

•    The attributes of fine information
•    Procedure of measuring and communicating information
•    The decision making procedure
•    Users of information

Users of information

The users of information can be sub-divided into two groups:

1) Internal users who are parties in the organization e.g. the management or the staff.

2) External users who on the other hand, are parties outside the organization e.g. the shareholder, creditors, government, customers, etc.


Related Discussions:- Definition of accounting

Which of the following costs is an example of a cost, Which of the followin...

Which of the following costs is an example of a cost that remains the same in total as the number of units produced changes?

Cash planning, Firms need cash to invest in inventory, receivables and fixe...

Firms need cash to invest in inventory, receivables and fixed assets and to create payments for operating expenses, so as to increase earnings and sales and make sure the smooth ru

Special order manufacturer, Viti Ltd, located in southern Viti Levu, manufa...

Viti Ltd, located in southern Viti Levu, manufactures a variety of industrial valves and pipe fittings that are sold to customers in the eastern states. Currently, the company is o

Case of variable quantity-discounts structures, The case of variable quanti...

The case of variable quantity discounts In practice, suppliers may offer different discounts for different quantities purchased. For illustration:    Segment        Quantity

Flexible budgeting, FLEXIBLE BUDGETING Flexible budget may be used in one ...

FLEXIBLE BUDGETING Flexible budget may be used in one of two ways: Planning and Control. At the planning stage when budgets are set, to reduce the effect of uncertainty. For ex

Model construction, Model Construction The success of a simulation exer...

Model Construction The success of a simulation exercise is related to the predictive quality of the underlying model, so that considerable care should be taken with model const

Line of credit, It is a commitment by a bank to lend a specific amount of f...

It is a commitment by a bank to lend a specific amount of funds on demand identifies the maximum amount of unsecured credit the bank will allow the customer to borrow at any time.

Intro to Managerial Accounting, I don''t know how to do a variable income s...

I don''t know how to do a variable income statement. Here is my assignment: The Used Books Company is a small online retailer operating out of a garage apartment. The owner buys

Basic assumption of transportation model, Basic Assumption of Transportatio...

Basic Assumption of Transportation Model The basic assumption of the model is that the transportation cost on a given route is directly proportional to the number of units tran

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd