Managerial Accounting

Managerial accounting is concerned with providing information to managers. In this example, managers are the people inside of an organization who direct and control the operations of the specified organization. Managerial accounting provides the essential data with which organizations actually run. Managerial accountants are known for preparing and providing numerous financial reports. Some of these reports focus on how well managers or business units have performed. In these reports, the managerial accountant is comparing actual results to plans and benchmarks within the organization. Additionally, some reports provide timely, frequent updates on key indicators such as orders received, order backlog, capacity utilization, and sales. Other analytical reports are also known to be prepared my managerial accountants. These reports are prepared as needed to investigate specific problems such as decline in the profitability of a product line. Furthermore, other reports analyze a developing business situation or opportunity. In this case assignment I will evaluate the responsibilities of a financial accountant and explain the accountant’s treatment of product costs, and capital investment. Lastly, I will describe meaningful managerial performance evaluations, the issues of making a good in house or by outsourcing the good, and explain the criteria for dealing with accepting or rejecting a customer’s bid on an order.

Every organization throughout the United States regardless of size has managers. Someone must be responsible for making plans, organizing resources, directing personnel, and controlling the overall organization operations. Managerial accountants in any organization have a very challenging and important duty. Managerial accountants must review product costs. Product costs include all the costs that are involved in acquiring or making a product. In the case of manufactured goods, this cost consists of direct materials, direct labor, and...