Managerial Accounting Essay Example for Free

managerial be EssayAccountants and auditors help to ensure that firms are run efficiently, public records kept accurately, and taxes paid properly and on time. They analyze and communicate financial information for various entities such as companies, individual clients, and Federal, State, and local governments. beyond carrying out the fundamental tasks of the occupation providing information to clients by preparing, analyzing, and verifying financial documentsmany accountants also nominate budget analysis, financial and investment planning, information technology consulting, and limited legal services.Managerial Accounting Managerial bill is concerned with providing information to managers that is, people inside an organization who unmediated and control its operation. Managerial write up provides the essential data with which the organizations are factually run. Managerial accounting is also termed as management accounting or address accounting. Standard monetary value ing is an authorized subtopic of cost accounting. Standard be are commonly associated with a manufacturing companys costs of direct material, direct labor, and manufacturing overhead.Rather than assigning the actual costs of direct material, direct labor, and manufacturing overhead to a product, many manufacturers assign the expected or ensample cost. This means that a manufacturers inventories and cost of goods sold will begin with amounts reflecting the standard costs, not the actual costs, of a product. Manufacturers, of course, still have to commit the actual costs. As a result there are almost always differences between the actual costs and the standard costs, and those differences are known as variances.Standard costing and the related variances is a invaluable management tool. If a variance arises, management becomes aware that manufacturing costs have differed from the standard (planned, expected) costs. * If actual costs are greater than standard costs the variance is unfavorable. An unfavorable variance tells management that if everything else stays unvarying the companys actual simoleons will be less than planned. * If actual costs are less than standard costs the variance is favorable.A favorable variance tells management that if everything else stays constant the actual profit will likely exceed the planned profit. Use in Business Managers rely on cost accounting to provide an idea of the actual expenses of processes, departments, operations or product which is the foundation of their budget, allowing them to analyze vacillation and the way funds are used socially for profit. It is used in management accounting, where managers justify the great power to cut expenses for a company in order to increase that company? s profit.As a tool for internal use, versus a tool for external users like financial accounting, cost accounting does not need to follow the GAAP standards (Generally Accepted Accounting Principles) because its use is more prag matic. It is a very important part of the management accounting process. In order for managers to determine the best methods to increase a companys profitability, as well as saving a company money in the future, cost accounting is a necessary system in the management of a companys budget, providing important data to analyze fluctuation in company production expense.