...managerial accounting system consists of information that management uses to make decisions about the operations of the business. As per the request of the CEO, I am writing a memo to provide information of the characteristics of managerial accounting and why it is necessary for another managing accountant within our company. The Seven Characteristics of Managerial Accounting There are seven characteristics of an managerial accounting system which is comprised of users and decision makers, purpose of information, flexibility of practice, timeliness of information, time dimension, the focus of information and the nature of information (Wild & Shaw, 2012). There is often confusion between financial and managerial accounting, therefore, the following will give detail of the explanation of the seven characteristics of managerial accounting versus financial accounting. This information should also aid with the understanding of why another managing accountant is needed. Users and decision makers. In managerial accounting, this characteristic refers to the internal management, unlike financial accounting that involves external users such as investors and creditors (Wild & Shaw, 2012). Purpose of Information. Management uses informational reports of the company’s financial activities to make important decisions about the ongoing operations of the business. External users use this information to determine the outlook of the financial standing of the company in order to continue...
Words: 781 - Pages: 4
...Users of financial information and their informational needs Users of accounting information are either internal or external to the organization. These users need information to help them make informed or reliable decisions or judgements with regards to the organization. Different groups have different demands for the financial information contained in a set of accounts. Information needs of internal users: These include: i) Management: This category is made up of the senior employees who run the organization on a day- to- day basis. They are interested in information such as, Finance of the organization (working capital) The growth prospects (value of shares and dividends) ii) Employees: This is the group of workers in the organization made up of existing potential and past employees. The members of this group are concerned with job security and future prospects. Therefore, they need information to assess the company’s profitability, liquidity and growth prospects. Employees need information about; The financial state of the organization ( for their salaries) The growth and stability of the organization ( new investments ) to ensure continuity of employment. Profitability. Others are informational needs of external users including iii) Customers: Those who buy from the organization either for cash or on credit are interested in; The profitability The growth and stability ( new product lines) Customers will also need information or price so they can...
Words: 281 - Pages: 2
...Abstract This essay is written to inform of the difference in financial accounting and managerial accounting. What is account first and foremost accounting is an information system that reports on the economic activities and financial condition of a business or other organization. Financial accounting and managerial accounting plays different roles in society. This essay is also written to inform the readers of the financial statements used in accounting and what impact each statement has on the accounting process. Accounting provides information that helps answer such questions, by taking a look at what it would cost, and how the costs are relevant to the survival of a business. Accounting is an information system that reports on the economic activities and financial conditions of a business or other organization. Do not underestimate the importance of accounting information. Communicating economic information is so important that accounting is frequently called the language of business. (Edmonds, 2012) Here are some questions about the role of accounting in Society according to Edmonds, Olds, McNair, and Tsay (2009). How should society allocate its resources? Should we spend more to harvest food or cure disease? Should we build computers or cars? Should we invest money in IBM or General Motors? Accounting provides information that helps answer such questions, by taking a look at what it would cost, and how the costs are relevant to whether a business survive or not. (Edmonds...
Words: 2005 - Pages: 9
...Interdisciplinary Journal of Information, Knowledge, and Management Volume 2, 2007 Approach to Building and Implementing Business Intelligence Systems Celina M. Olszak and Ewa Ziemba University of Economics, Katowice, Poland olszak@ae.katowice.pl ewa.ziemba@ae.katowice.pl Abstract Abstract: The article aims at describing processes of building Business Intelligence (BI) systems. Taking the BI systems specifics into consideration, the authors present a suggested methodology of the systems creation and implementation in organisations. The considerations are focused on objectives and functional areas of the BI in organisations. Hence, in this context the approach to be used while building and implementing the BI involves two major stages that are of interactive nature, i.e. BI creation and BI “consumption”. A large part of the article is devoted to presenting objectives and tasks that are realised while building and implementing BI. Key words: Business Intelligence, methodology of BI construction, designing BI, business decision-making, knowledge management Introduction Socio-economic reality of contemporary organisations has made organisations face some necessity to look for instruments that would facilitate effective acquiring, processing and analysing vast amounts of data that come from different and dispersed sources and that would serve as some basis for discovering new knowledge. For long time management information systems (MIS) have been supporting organisations in their...
Words: 6255 - Pages: 26
...success of Kudler, the information provided in these tables is available for the end user to determine inventory levels and when ordering is needed. The design of data tables organizes the financial data into department, financial codes, items and then sums of total amount of transaction. Data tables maximize the visual and informational presentation for the financial data. The user can easily identify information about each item as belonging to certain department, and how many items were received at the given cost for a certain period. It allows finding total amount and quantity on hand for an item and calculating average price for an item. Entity relationship diagram illustrates the hierarchy of how information reviewed by end users. The data represented in entity relation diagrams (E-R) includes the business entities and the relationship among them. E-R diagrams use four symbols: rectangles to represent entities, diamonds to describe relationship, ovals describe the entity, characteristics, and connecting lines depicts relationships. Recommendation for improvements to the Data Tables The Pivot Table is two-dimensional statistical summay of database information and can be improved by arranging the codes chronologically and sorting the data by compiling the list of product inventory levels. This will facilitate monitoring items for a department that has different items to sell. Data sorting will allow visualizing faster and finding the data they need to make effective...
Words: 411 - Pages: 2
...in relation to offences and infringements relating to copyright material. Higher penalties may apply, and higher damages may be awarded, for offences and infringements involving the conversion of material into digital or electronic form. EDITH COWAN UNIVERSITY Use of Theses This copy is the property of the Edith Cowan University. However the literary rights of the author must also be respected. If any passage from this thesis is quoted or closely paraphrased in a paper or written work prepared by the user, the source of the passage must be acknowledged in the work. If the use desires to publish a paper or written work containing passages copied or closely paraphrased from this thesis, which passages would in total constitute an infringing copy for the purposes of the Copyright Act, he or she must first obtain the written permission of the author to do so. USERS AND ACCOUNTING INFORMATION PREFERENCES OF GOVERNMENT DEPARTMENT FINANCIAL REPORTS by Helen R Mignot B (Bus) A thesis submitted in partial fulfilment of the requirements for the award of Master of Business (Accounting) at the Faculty of Business Edith Cowan University Date of Submission: 05 February 1996 ACKNOWLEDGMENTS AND DEDICATION I wish to thank all those who provided...
Words: 6259 - Pages: 26
...her primary source of information for remote accounting services. Remote accounting service providers; in order to provide the right services to E-Controller’s customers he or she needs to understand whether his or her perspectives on accounting services is different from the users perspectives and, if so, how. By asking remote accounting service providers and users a few questions concerning accounting needs, management can learn a great deal about the satisfaction level of accounting's internal customers and how accounting services might be improved for remote access. The success of E-Controller is to put customer services and the satisfaction of the customers at the top of the list on preforming well. Unfortunately, the work of remote accountants remains a mystery to most of its customers in which not being able to see him or her face to face. Informational needs of accounting remote customers are not being met. In order to be objective to the views of the quality of remote accounting services, accounting management may use consultants or independent internal evaluations. Service quality is meeting or exceeding the expectations of customers. Quality remote accounting services are the customer’s needs in using and consider important in carrying out his or her work. Informational needs of the customers are likely to view data information as important as strategies within the organization. Remote accounting services can request information on the organization or...
Words: 725 - Pages: 3
...their AIS to track employees, customer, inventory, orders, and sales. Kudler’s products have perishable inventory that must be properly tracked. This brief will evaluate database tables from an accounting perspective. In addition, gives recommendations for improvement, pivot table, and entity relationship diagram will help the company have a better decision-making process. Assessment of the design elements of the data tables from an accounting perspective. Data Table analysis is vital to the success of the business, the data given in these tables is available for the end user to determine how much inventory is available and when it require to order more inventory. The purpose of the data tables will arranges the financial data into department, financial codes, items, and sums of total amount of transaction. Data table get the most out of the informational and visual presentation for the financial data. The user of the data can easily to identify the item belongs to certain department and how many items were received at the given cost for a certain period. In addition, the data allows in finding quantity and total amount on hand for an item and calculating average price of the item. Kudler Fine Foods data tables the company has now, organized per department and location by a general codes in a general ledger. For example the codes differentiated per department, product, and locations, in addition, the first two digits show the location (10) La Jolla, (11) Del Mar, (12)...
Words: 874 - Pages: 4
...12.5 Human Resource management Information Systems A human resource information system (HRIS) supports the human resources function of an organization with information. The name of this function reflects the recognition that people who work in a firm are frequently its most valuable resources. The complexity of human resource management has grown immensely over recent years, primary due to the need to conform with new laws and regulations. A HRIS has to ensure the appropriate degree of access to a great variety of internal stakeholders, including, the employees of the Human Resources department in performance of their duties, All the employees of the firm wishing it inspect their own records, all the employees of the firm seeking information regarding open positions or available benefit plans, employees availing themselves of the computer-assisted training and evaluation opportunities, managers throughout the firm in the process of evaluating their subordinates and making personnel decisions, and corporate executives involved in tactical and strategic planning and control. let’s see the transaction Processing Subsystems and Databases of Human Resource Information Systems. At the heart of HRIS are its databases, which are in some cases integrated into a single human resource database. The record of each employee in a sophisticated employee database may contain 150 to 200 data items, including the personal data, educational history and skills, occupational background, and the...
Words: 1242 - Pages: 5
...Content Marketing Strategy 1. User Friendly ( Blog Content , guides , infographics , video content ) * Deliver some immediate value in exchange of viewing ( shows that the bank understand what the customers actually need and want ) * Positioning the brand as the trusted partner and making the information accessible to readers who need simple tips or ideas to manage their finances. 2. Great Resource ( Blog Articles ) * Give a lot of valuable advices , tips and information * Attractive , well-organised , easy to navigate * Not promotional and speak directly to the needs of readers 3. Brand’s Personality (Blog articles, webinars, infographics, videos) * Contents in a title layout * Images in every post * Modern visuals that draw attention * Solid tips and advice 4. Informative and educational ( Blog articles with call-to-actions ) * Resource center on website ( eg: financial education center where visitors can find financial guidelines and informational resources ) * Informative content about issues that students normally face. ( eg: selecting and applying to colleges in four easy steps ) * Targeted to both parents and students * Builds loyalty and the brand’s SEO 5. Display pictures and content focused on chairman , CEO and other business man and their perspectives , advice , and stories (real stories about business ideas , blog articles, videos ) 6. Fun and Exciting ( effective...
Words: 331 - Pages: 2
...Should stewardship be a distinct fundamental objective of financial reporting? Why or why not? The removal of stewardship from the common conceptual frameworks is a recent decision within various accounting standard-setting bodies, met with indistinguishable levels of opposition and support. Financial users insist that determining whether or not resources entrusted in management have been used for their intended purpose should be upheld as a vital objective of financial reporting while conceptual framework regulators and standard setters believe that it is not a necessary pre-requisite for common standards mainly relying on the conviction that the word does not translate effectively into many other languages. Given the greater implicated social and economic risk created as a result of the absence of stewardship in the conceptual framework it would be more practical to reverse the decision. The lack of emphasis on stewardship from the conceptual framework has increased cross-constituency variation is financial reporting. This contradicts directly with the general objective of the development of conceptual framework, as an adequate minimization of disparities improves the comparability and transparency of financial information. As Carmen Nobel (2011) reports in ‘Why Companies Fail—and How Their Founders Can Bounce Back’ high-tech start-up and emerging companies tend to exhibit higher levels of squandering and enronomics than well-established blue-chip firms. The element...
Words: 571 - Pages: 3
...Phoenix Accounting Information Systems ACC/542 Anita Rodriguez April 2, 2012 Data Table Analysis Kudler Fine Foods was founded by Kathy Kudler in La Jolla in 1998. In the beginning, Kudler Fine Foods had only one store, causing Kathy Kudler to make the decision to use the Microsoft Access database to monitor and maintain sales, employees, inventory, customers, and orders. Because Kudler Fine Foods inventory was perishable, it was imperative to track properly these items. Possessing too much inventory was always a concern of Kudler Fine Foods, if the inventory information was inaccurate, outdated, or incomplete the information would be of no use to the company. This paper will present suggestions for enhancement, evaluate database tables from an accounting point of view, and generate a pivot table to assist the management of Kudler Fine Foods with preparing improved reports in accounting and enhance the decision-making process. Evaluate the design elements of the data tables from an accounting perspective The inventory tables allow the users to establish when to order additional inventory and what inventory is on hand. The use of data table analysis is of the essence for this process. The data table is intended to categorize the data into departments, financial codes, items, and it adds the total amount for the transaction codes. It also adds the amount of items in the inventory during a specified period. The data table design increases the informational and visual presentation...
Words: 903 - Pages: 4
...spread of plentiful, cheap information. C) the enabling of commerce worldwide. D) the availability of the Internet everywhere and anytime. 2. Which of the following is not one of the unique features of e-commerce technology? A) information density B) transparency C) richness D) social technology 3. The act of engaging consumers in a dialog that dynamically adjusts the experience to the individual describes which dimension of e-commerce technology? A) ubiquity B) personalization/customization C) richness D) interactivity 4. The integration of video, audio, and text marketing messages into a single marketing message and consumer experience describes which dimension of e-commerce technology? A) ubiquity B) personalization/customization C) richness D) interactivity 5. The effort required to locate a suitable product is called A) price discrimination. B) search costs. C) menu costs. D) shopping costs. 6. Information density refers to the A) complexity and richness of a message. B) total amount and quantity of information delivered to consumers by merchants. C) total amount and quantity of information available to all market participants. D) amount of information available to reduce price transparency. 7. Selling the same goods to different targeted groups at different prices is called A) cost customization. B) cost optimization. C) price gouging. D) price discrimination. 8. Information ________ exists when one...
Words: 3017 - Pages: 13
...2.2.2 Role of Reference Groups For reliable and authentic information related to products, consumers seek sources that are not owned or sponsored by media such as ‘word of mouth’. Sources of word of mouth includes friends and family, clubs, online forums and neighbours. Online sources such as Facebook, Twitter and Instagram provide a platform for user to discuss, tag people and share their experiences and opinions about products. Such reference groups help marketers to manage feedback and address issues promptly. Though, social media feedback poses a lot of challenges for marketers since they have to be very vigilant and tactful in handling online feedback, if positive, it also has the potential to create a strong brand name. Customer concerns...
Words: 1032 - Pages: 5
...MC53: Positioning & Creative Strategy Exam project spring 2012 CPR. Nr. 280880-3030 Table of content Part one: Category Background .............................................................................................................. 2 Presentation of chosen product............................................................................................................ 2 Market background information´s ....................................................................................................... 2 Part two: Analysis of Competitive Advertising ........................................................................................ 4 General characteristics of the car industry .......................................................................................... 4 Skoda Citigo advertising analysis ....................................................................................................... 4 Seat Mii advertising analysis ............................................................................................................... 6 Part Three: Brand Advertising Strategy ................................................................................................... 9 VW Up advertising analysis ................................................................................................................ 9 Potential new advertising for VW Up ............................................................................................... 10...
Words: 4486 - Pages: 18
