Accounting 202 Acct.
Management accounting is very different from financial accounting.
While financial accounting is aimed at helping shareholders and creditors make investment decisions, the purpose of management accounting is to help managers operate their businesses. This course examines how managers use cost and operating data to make decisions such as which products to produce, what prices to charge, how much inventory to order, when to borrow money, and whether to invest in new machinery. Material in the first five weeks of the course will examine how managers use cost information to make pricing, production, and investment decisions. During the next three weeks we will study product costing including activity-based costing. The next four weeks of the course will cover budgeting and performance evaluation.