Financial and managerial accounting assist in decision making. However, the practicality of the application of financial and managerial accounting is questionable for decision making in the organization.
What are the reason for the difficulty in the application of financial and managerial accounting in daily decision making in the organization?
What are the solutions so as to apply financial and managerial accounting for decision making in the organization?
Some problems need a rational decison making approach. Some are bounded rationality, while others require intutitive and a creative approach. The decision making process is clear and financial and managerial accounting fits into that process. It is whether the problems can be resolved satisfactorily.
Some problems need a rational decison making approach. Some are bounded rationality, while others require intutitive and a creative approach. The decision making process is clear and financial and managerial accounting fits into that process. It is whether the problems can be resolved satisfactorily.
Find some answers in:
THE QUALITY OF ACCOUNTING INFORMATION AND USER'S SOCIAL RESPONSIBILITY: SOCIAL ASPECT. International Journal of Advances in Management and Economics http://www.managementjournal.info/index.php/IJAME/article/view/617/514
Mostly managerial accounting, not financial accounting, can be helpful in decision making by the entity's respective management. However, both can be useful when they are correct and accurate.
Managerial accounting - is to produce useful information for a company's internal use, as well Financial accounting has some internal uses. The final accounts or financial statements produced through financial accounting are designed to disclose the firm's business performance and financial health.
Reasons why it difficult to apply financial and managerial accounting for decision making in the organization
- Managerial accounting is created for a company's management , financial accounting is created for its investors, creditors and industry regulators .
- The information of financial accounting contain data for a defined period of time , managerial accounting looks past performance and creates business forecast.
- Reports generated , in managerial accounting are only circulated internally , financial accounting information is released for public consumption and is highly anticipated by investors.
Managerial accounting is much different from financial accounting. Also known as management accounting or cost accounting, managerial accounting provides information to managers and other users within the company in order to make more informed decisions. The overriding roles of managers (planning, controlling, and evaluating) lead to the distinction between financial and managerial accounting. The main objective of management accounting is to provide useful information to managers to assist them in the planning, controlling, and evaluating roles.
Unlike managerial accounting, financial accounting is governed by rules set out by the Financial Accounting Standards Board (FASB), an independent board made up of accounting professionals who determine and publicize the standards of financial accounting and reporting in the United States. Larger, publicly traded companies are also governed by the US Securities and Exchange Commission (SEC), in the form of the generally accepted accounting principles (GAAP), the common set of rules, standards, and procedures that publicly traded companies must follow when they are composing their financial statements.
Financial accounting provides information to enable stockholders, creditors, and other stakeholders to make informed decisions. This information can be used to evaluate and make decisions for an individual company or to compare two or more companies. However, the information provided by financial accounting is primarily historical and therefore is not sufficient and is often synthesized too late to be overly useful to management. Managerial accounting has a more specific focus, and the information is more detailed and timelier. Managerial accounting is not governed by GAAP, so there is unending flexibility in the types of reports and information gathered. Managerial accountants regularly calculate and manage “what-if” scenarios to help managers make decisions and plan for future business needs. Thus, managerial accounting focuses more on the future, while financial accounting focuses on reporting what has already happened. In addition, managerial accounting uses nonfinancial data, whereas financial accounting relies solely on financial data.
Managerial accounting - is to produce useful information for a company's internal use, as well Financial accounting has some internal uses. The final accounts or financial statements produced through financial accounting are designed to disclose the firm's business performance and financial health.
Reasons why it difficult to apply financial and managerial accounting for decision making in the organization
- Managerial accounting is created for a company's management , financial accounting is created for its investors, creditors and industry regulators .
- The information of financial accounting contain data for a defined period of time , managerial accounting looks past performance and creates business forecast.
- Reports generated , in managerial accounting are only circulated internally , financial accounting information is released for public consumption and is highly anticipated by investors.
inconclusion
Some problems need a rational decison making approach. Some are bounded rationality, while others require intutitive and a creative approach. The decision making process is clear and financial and managerial accounting fits into that process. It is whether the problems can be resolved satisfactorily.
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Why is it difficult or even sometimes impractical to apply financial and managerial accounting for decision making in the organization?
Beatrice Kamara
Feb 4, 2020
Answer
Managerial accounting - is to produce useful information for a company's internal use, as well Financial accounting has some internal uses. The final accounts or financial statements produced through financial accounting are designed to disclose the firm's business performance and financial health.
Reasons why it difficult to apply financial and managerial accounting for decision making in the organization
- Managerial accounting is created for a company's management , financial accounting is created for its investors, creditors and industry regulators .
- The information of financial accounting contain data for a defined period of time , managerial accounting looks past performance and creates business forecast.
- Reports generated , in managerial accounting are only circulated internally , financial accounting information is released for public consumption and is highly anticipated by conclusion
Some problems need a rational decison making approach. Some are bounded rationality, while others require intutitive and a creative approach. The decision making process is clear and financial and managerial accounting fits into that process. It is whether the problems can be resolved satisfactorily.
rview
Research
Info
Filter by content type: Answers
Answers
What are the common and Unrecognizable mistakes in Formulating and Clarifying Research Topics
Beatrice Kamara
Feb 4, 2020
Answer
•Select an untestable research topic which means the variables included cannot be proved right through the use of scientific procedures. •Select an inconsistent topic whic
… Read more
View
Recommend
Why is it difficult or even sometimes impractical to apply financial and managerial accounting for decision making in the organization?
Beatrice Kamara
Feb 4, 2020
Answer
Managerial accounting - is to produce useful information for a company's internal use, as well Financial accounting has some internal uses. The final accounts or financial statements produced through financial accounting are designed to disclose the firm's business performance and financial health.
Reasons why it difficult to apply financial and managerial accounting for decision making in the organization
- Managerial accounting is created for a company's management , financial accounting is created for its investors, creditors and industry regulators .
- The information of financial accounting contain data for a defined period of time , managerial accounting looks past performance and creates business forecast.
- Reports generated , in managerial accounting are only circulated internally , financial accounting information is released for public consumption and is highly anticipated by conclusion
Some problems need a rational decison making approach. Some are bounded rationality, while others require intutitive and a creative approach. The decision making process is clear and financial and managerial accounting fits into that process. It is whether the problems can be resolved satisfactorily.
Managerial accounting - is to produce useful information for a company's internal use, as well Financial accounting has some internal uses. The final accounts or financial statements produced through financial accounting are designed to disclose the firm's business performance and financial health. Reasons why it difficult to apply financial and managerial accounting for decision making in the organization - Managerial accounting is created for a company's management , financial accounting is created for its investors, creditors and industry regulators . - The information of financial accounting contain data for a defined period of time , managerial accounting looks past performance and creates business forecast. - Reports generated , in managerial accounting are only circulated internally , financial accounting information is released for public consumption and is highly anticipated by investors. inconclusion Some problems need a rational decison making approach. Some are bounded rationality, while others require intutitive and a creative approach. The decision making process is clear and financial and managerial accounting fits into that process. It is whether the problems can be resolved satisfactorily.
Managerial accounting is much different from financial accounting. Also known as management accounting or cost accounting, managerial accounting provides information to managers and other users within the company in order to make more informed decisions. The overriding roles of managers (planning, controlling, and evaluating) lead to the distinction between financial and managerial accounting. The main objective of management accounting is to provide useful information to managers to assist them in the planning, controlling, and evaluating roles.
Unlike managerial accounting, financial accounting is governed by rules set out by the Financial Accounting Standards Board (FASB), an independent board made up of accounting professionals who determine and publicize the standards of financial accounting and reporting in the United States. Larger, publicly traded companies are also governed by the US Securities and Exchange Commission (SEC), in the form of the generally accepted accounting principles (GAAP), the common set of rules, standards, and procedures that publicly traded companies must follow when they are composing their financial statements.
Financial accounting provides information to enable stockholders, creditors, and other stakeholders to make informed decisions. This information can be used to evaluate and make decisions for an individual company or to compare two or more companies. However, the information provided by financial accounting is primarily historical and therefore is not sufficient and is often synthesized too late to be overly useful to management. Managerial accounting has a more specific focus, and the information is more detailed and timelier. Managerial accounting is not governed by GAAP, so there is unending flexibility in the types of reports and information gathered. Managerial accountants regularly calculate and manage “what-if” scenarios to help managers make decisions and plan for future business needs. Thus, managerial accounting focuses more on the future, while financial accounting focuses on reporting what has already happened. In addition, managerial accounting uses nonfinancial data, whereas financial accounting relies solely on financial data.
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