Unit 1: Managerial Accounting
We begin by examining the differences between financial and managerial accounting. The primary difference pertains to the audience: who will read the reports? Financial accounting information is geared toward external users, while managerial accounting is for internal users. Managerial accounting is integral to making operational and strategic decisions.
In this unit, we examine the manufacturing process and related financial accounting transactions, so you can differentiate between product costs
and selling and administrative costs. The flow of costs in cost accounting mirrors the physical flow of the inventory. For example, a pizza parlor first buys the direct materials they put on their pizzas (cheese, tomatoes, and pepperoni). When a customer
orders a pizza, the restaurant assembles the direct materials, bakes (work in process) and completes a pizza (finished goods), and delivers it to the customer.
Completing this unit should take you approximately 3 hours.
1.1: Financial Accounting vs. Managerial Accounting
1.2: Key Finance and Management Accounting Personnel
1.3: Ethical Issues Facing the Accounting Industry
1.4: Computerized Accounting Systems
1.5: Product Costs
1.6: Income Statements for Manufacturing Companies
1.7: Basic Math Review