Accounting Basics and Definitions: Accounting Fundamentals (Enhanced DVD)
Managerial accounting practices are an essential element of any business. The program focuses on the scope of managerial accounting practice used in financial control of companies. Organizations using traditional standard cost accounting follow GAAP (Generally Accepted Accounting Principles). GAAP is applied to financial accounting; and has contributed to the evolution of Activity Based Cost, Life-cycle Cost, and Variance analysis approaches. Distinct from traditional accounting measurement of cost behaviors against production or sales volume, the latter include risk and time factors for the forecasting, planning, and performance analysis of internal productivity, value, and risk.
Integration of ABC principles engages a new process in accounting so that other audit measures and methods might be included. With ABC, full cost itemization is met with mechanistic iteration. The methodology allows for untold changes in financial activities (i.e. tender bid, and price of resources) without major changes to procedure. ABC deviation from traditional accounting practices moves cost inventory expense from immediate record to future reporting. Scalability of resource costs from direct expense accounting to ABC fixes material costs for a later date. In former accounting practice, inventory accountability was subject to strict time limitations in regulatory control of annual financial audits.
The program shows how managerial accountants are also responsible for the preparation of quarterly and annual financial reports in coordination with controller reporting. Reconciliation of financial data regulatory, and risk reporting is generally the activity of a finance team that will also include managerial accountants. In the international business context, financial management and accounting techniques pose new challenges Principles applied to accounting practice are in accordance with GAAP or non-GAAP rules, and international accounting standards where applicable.
Accounting Basics and Definitions: Accounting Fundamentals