Introduction to Managerial Accounting
This technical note is an introduction to managerial accounting, as the title indicates.
Accounting systems are measurement procedures that aim to provide useful information about a company. However, there are different users of accounting information. For example, the information that a creditor needs before entering into a loan contract with a company is not necessarily the same information that a manager needs to run the company. While the creditor is interested in information about a firm's ability to repay its debt, the manager is more interested in other information such as product profitability, deviations from the budget, or divisional performance. Thus, these different types of information require accounting systems with different measurement criteria.
Accounting systems are measurement procedures that aim to provide useful information about a company. However, there are different users of accounting information. For example, the information that a creditor needs before entering into a loan contract with a company is not necessarily the same information that a manager needs to run the company. While the creditor is interested in information about a firm's ability to repay its debt, the manager is more interested in other information such as product profitability, deviations from the budget, or divisional performance. Thus, these different types of information require accounting systems with different measurement criteria.
Collection: IESE (España)
Ref: CN-223-E
Format: PDF
Number of pages: 3
Publication Date: Jun 5, 2014
Review date: Nov 22, 2018
What material is included in this case:
Description
This technical note is an introduction to managerial accounting, as the title indicates.
Accounting systems are measurement procedures that aim to provide useful information about a company. However, there are different users of accounting information. For example, the information that a creditor needs before entering into a loan contract with a company is not necessarily the same information that a manager needs to run the company. While the creditor is interested in information about a firm's ability to repay its debt, the manager is more interested in other information such as product profitability, deviations from the budget, or divisional performance. Thus, these different types of information require accounting systems with different measurement criteria.
Read more
Accounting systems are measurement procedures that aim to provide useful information about a company. However, there are different users of accounting information. For example, the information that a creditor needs before entering into a loan contract with a company is not necessarily the same information that a manager needs to run the company. While the creditor is interested in information about a firm's ability to repay its debt, the manager is more interested in other information such as product profitability, deviations from the budget, or divisional performance. Thus, these different types of information require accounting systems with different measurement criteria.
Learning Objective
MBA and EMBA
Leave your rating
"Introduction to Managerial Accounting"
Register for free with IESE Publishing and enjoy all the advantages
What type of account do you want to create?
Choose account type
Professors
Academic Institutions
Companies
Individuals