This case note is partnered with Introduction to Managerial Accounting. Accounting systems are measurement processes that have the aim of providing helpful information regarding a company. Nonetheless, there are various users of accounting information. For instance, before entering into financing contract with a business, the information that a lender needs is not automatically the same advice that the manager must run the company.
While the creditor is thinking about information about a business's ability to settle its debt, the manager is more thinking about other info deviations from the budget or divisional functionality, such as product profitability. Consequently, these different kinds of information demand accounting systems with distinct measurement standards.
PUBLICATION DATE: June 05, 2014 PRODUCT #: IES467-PDF-ENG
This is just an excerpt. This case is about FINANCE & ACCOUNTING