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Managerial and Financial Accounting
ACC/300
University of Phoenix
November 17, 2008
Introduction
In this research paper the focus of managerial and financial accounting will be discussed along with the policies and regulations that an accountant must follow when performing an independent calculation of any financial records. The laws that make the work of an accountant neutral will be discussed along with why the records must meet a true and correct standard for any party that reviews them.
With the multitude of applications that accounting accomplishes in the modern business world can be easy to forget end purposes accounting is designed to achieve. Managerial accounting is designed for the purpose of the decision makers within the company. Financial accounting is designed to accomplish the needs of those outside of the organization. Whether financial or managerial, is important that the data is accurate since so many important decisions are based upon it.
Managerial accounting is focused on supplying the organization’s managers with the present financial information necessary to their decision making process in managing their profit performance. An organization’s income and profits based on the structure of revenues and costs as well as the volume of activity that it achieves (Gould, 2008). The information is presented in a form that resembles the income statement (for external use) but is referred to as an internal profit and loss (P&L) or internal profit report. Not normally expressed externally, activity is measured in number of units sold, and expenses are segmented to variable and fixed. Sales revenue and cost of goods sold round out the five areas of da ...