Managerial Accounting

Managerial accounting refers to a branch of accounting that covers the flow of information internally. This branch covers various tools and techniques that companies can use to enhance decision-making. While financial accounting covers reporting information externally, managerial accounting is for internal purposes. For most companies, it is more crucial than financial accounting as it has […]

In managerial accounting, separating direct and indirect costs is highly crucial. Managerial accounting refers to the branch of accounting which covers the internal accounting process. This branch covers the information flow within a company, particularly to managers. Based on this information, managers can make well-informed and better decisions. One of the fundamental areas included within

Decision-making is a crucial part of any management team. These decisions usually relate to the activities and operation of a company. For most companies, the decisions made by managers are crucial in helping increase profitability and reduce costs. Even fundamental functions in a company will fail without the right decisions made by the management. The

Managerial accounting refers to a branch of accounting that covers the flow of information internally. This branch covers various tools and techniques that companies can use to enhance decision-making. While financial accounting covers external reporting, managerial accounting is for internal purposes. For most companies, it is more crucial than financial accounting as it has various

Accounting is a process for companies to record financial transactions occurring during operations. This process usually involves summarizing, analyzing and reporting those transactions. In most cases, it aims to provide users with useful information for decision-making. Companies maintain a finance department that overlooks and controls this process. Usually, this department has multiple accountants that deal

A cost refers to expenses incurred for a specific purpose. For companies, this purpose includes producing and selling their products and services. Incurring costs are crucial in helping companies make revenues. Usually, these costs come from various sources and accumulate into a single unit. This unit may differ from one company to another. In most

The term “accounting” often gets associated with financial accounting. For most users, it is the primary branch in the accounting field. It usually involves the financial statements and reporting information about a fiscal year. This process creates the primary communication source between companies and their stakeholders. Financial accounting has several advantages, including its critical contribution

Budgeting allows companies to estimate their revenues and expenses for a specific period in the future. It provides them with a standard or benchmark against which they can measure their actual output. In most cases, budgets are crucial in keeping companies on track through their income and expenditure. This process can involve several steps and