Chapter one
Managerial accounting is concerned with providing information to managers that is people inside an organaization who control its operations.
There are some differents between the managerial and financial accounting :
no. table managerial financial
1 whom its concered to provide info inside an organization out side the organaization
2 type of data essential data wich it actually run inside scorecard by with company past performance is judged
3 type of the information some how confidential clear and avilable and puplic
4 obligation non obligation the copmany obligate to provide the financial reports
5 specified and accurate more specified and accurat limited
6 follow the GAAP don’t follow must follow
7 purposes and future goals best methods and ways to reduce the expenses providing the out side users of all the
helping managers to make best decisions information they need for different using
8 kind of the information financial , non financial and operating information mostly financial information
9 kind of data depend on expectation depend on real facts that did happen and more limited
The cost of the managerial accounting:
the costs of the what managerial accounting needs to provide and present it reports and data must be less than the benefits and profits expected to make
nature and characteristics of the information and data:
1- financial information:
can be measured by money
2- non financial information:
employees, specialises
3- quantitative information:
instruments, work hours
4- qualitative information:
skills, competed.
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Types and kinds of the information that the managerial accountting provide related to whom use it:
1- strategic information:
used by senior management ( the upper ) whom it concern at the general purposes of the firm as it resourcing and needed policies .
information nature:
A- cover all the firm.
B- mid and long terms.
C- all kind of information with concern of the
surrounded enviroment.
D- non specified information.
examples:
A- government decisions and it effect on the firm.
B- recent and future situation of a material that the firm product.
C- the competing that the firm facing and it share at the market.
2- tactical information :
used by mid management
main purpose to work on the decisions that the senior management put and change it to facts and operations.
nature:
A- cover short terms around two years.
B- more specified than the strategic information.
examples:
A- how to provide resourcing to do more operations ( raising the capital(.
B- what better buying machine X or Y.
D- what area should the firm open a new pranch X or Y.
3- operational information:
used by the lower management workers and employees
general purposes to work on the output of the mid management
nature:
A- more specifies.
B- cover short terms.
C- more related to the daily operations at the firm.
Examples:
A- type and kind of the materials.
B- type of the addition transporting.
C- quantity of the daily product.
E- how much firm needed of the daily commercial.
The characters of the managerial information:
1- relevance : so it must have :
A- bearing on the future not past.
B- different under competing alternatives.
2- accuracy.
3- time lines.
4- completenes.
5- understanability.
6- comparability.
7- objectivity.
8- be reliability.
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Managerial problems and decisions according to the ferquency and complexity:
A- repetitive or programed decisions:
1- daily or weekly.
2- routinely and repetitively.
3- repetitively but not routinely.
4- more surely and well known.
5- dont need for extra efforts according to the experiences of handling it.
6- need historical information.
7- source of the information from inside the firm.
B- unique or non-programmed decision:
1- non-repetitively from time to time.
2- may be token ones time only.
3- not sure.
4- need more extra efforts.
5- sources from in/out side the firm.
6- related to only with the future.
END OF CHAPTER ONE