Managerial accounting : Managerial accounting is the process of interpreting the financial information, and communicating it to the internal users, and managers in order to help them in the decision making process to achieve the goals of the organization. To explain: The term managerial accounting is a field of accounting that provides economic information for all interested parties.
Managerial accounting : Managerial accounting is the process of interpreting the financial information, and communicating it to the internal users, and managers in order to help them in the decision making process to achieve the goals of the organization. To explain: The term managerial accounting is a field of accounting that provides economic information for all interested parties.
Definition Definition Process by which financial information is analyzed, interpreted, and communicated to managers to support the achievement of an organization's goals. The main objective of managerial accounting is to maximize profits and minimize losses.
Chapter 1, Problem 1Q
(a)
To determine
Managerial accounting: Managerial accounting is the process of interpreting the financial information, and communicating it to the internal users, and managers in order to help them in the decision making process to achieve the goals of the organization.
To explain: The term managerial accounting is a field of accounting that provides economic information for all interested parties.
(a)
Expert Solution
Answer to Problem 1Q
Disagree
Explanation of Solution
In the field of accounting, the managerial accounting provides both economic and financial information for managers and other internal users. Thereby, it does not provide economic information for all interested parties.
Conclusion
Thus, the term managerial accounting is a field of accounting that provides economic information for all interested parties is disagreed.
(b)
To determine
Managerial accounting: Managerial accounting is the process of interpreting the financial information, and communicating it to the internal users, and managers in order to help them in the decision making process to achieve the goals of the organization.
To explain: The belief of J that the managerial accounting serves only manufacturing firms of J, is correct.
(b)
Expert Solution
Answer to Problem 1Q
J is incorrect.
Explanation of Solution
This is because managerial accounting applies to all types of businesses such as service, merchandising and manufacturing. Thereby, it cannot serve only the manufacturing firms. Hence, J’s belief is incorrect.
Conclusion
Hence, the belief of J that the managerial accounting serves only manufacturing firms of J is incorrect.
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