National Association of Accountants of the United States issued its first definition in 1981 with the document
entitled Defining Management Accounting, which management accounting defined as: "... The process of
identifying, measuring, accumulation, analysis, preparation, interpretation, and communication of financial
information used by management to plan, evaluate, and control organization and ensure proper use and management
responsibility resources. Management Accounting also includes the preparation of financial reports for nonmanagement
groups such as shareholders, creditors, regulatory agencies and tax authorities ".
Therefore, managerial accounting is concerned with providing information to managers. People are within an
organization, leading and controlling its operations. In contrast, financial accounting concerns the provision of
information to shareholders, creditors, and those who are outside, or other organizations.
Still, financial accounting and managerial accounting are providing the most important information for business.
In business management, but requires management accounting information. Every organization which are large
or small – as managers. Someone must be responsible for developing plans, organizing, resources, and personnel
National Association of Accountants of the United States issued its first definition in 1981 with the document
entitled Defining Management Accounting, which management accounting defined as: "... The process of
identifying, measuring, accumulation, analysis, preparation, interpretation, and communication of financial
information used by management to plan, evaluate, and control organization and ensure proper use and management
responsibility resources. Management Accounting also includes the preparation of financial reports for nonmanagement
groups such as shareholders, creditors, regulatory agencies and tax authorities ".
Therefore, managerial accounting is concerned with providing information to managers. People are within an
organization, leading and controlling its operations. In contrast, financial accounting concerns the provision of
information to shareholders, creditors, and those who are outside, or other organizations.
Still, financial accounting and managerial accounting are providing the most important information for business.
In business management, but requires management accounting information. Every organization which are large
or small – as managers. Someone must be responsible for developing plans, organizing, resources, and personnel
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