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This is a free online course offered by the Saylor Foundation.'In...Financial Accounting, we learned that firms need to track various forms of data in order to report to investors, regulators, and potential business associates such as customers and vendors. Firm managers, however, often need information that is much more detailed...
This is a free online course offered by the Saylor Foundation.
'In...Financial Accounting, we learned that firms need to track various forms of data in order to report to investors, regulators, and potential business associates such as customers and vendors. Firm managers, however, often need information that is much more detailed than the data provided in these financial reports. They use what is known as “managerial accounting” to make various decisions about their businesses. To avoid information overload, much of their data is tailored to the needs of a particular business unit instead of generally applicable to the firm as a whole.
As you might expect, different managers have different needs. However, almost all management decisions deal with the same key issues: cost, price, and profit. This course will examine this sort of decision-making, identifying the tools and methods managers use to make the best-informed decisions possible. We will begin with an introduction to the terms that will be referenced in the later units. We will then discuss the various methods and theories that managers deploy when tracking costs and profits. The final section will explain how managers report the overall performance of a firm or department for internal use. Upon completion of this course, students will be better prepared to make informed decisions within a firm.'