ACCOUNTING ANALYSIS

Accounting Analysis

Abstract

The paper discusses about the approach of costing and budgeting as a part of managerial decision making. It attempts to differentiate cost accounting from managerial accounting. It also describes the lean production philosophy and attempts to compare and contrast the accounting principles in lean production those of typical production. The paper then proceeds to provide a recommendation for Dr. Stephanie White for preparing a reduced budget by highlighting the areas where she can cut costs.

Accounting Analysis

Introduction

Accounting is a very broad field of study encompassing various aspects of business operations from production to sales. Managerial decision making, costing, financial analysis and budgeting are all part of the accounting analysis that is undertaken by the management of an organization to ensure that the organizational operations are being run efficiently.

Discussion

The accounting should be considered as an activity of service as a system of information and discipline descriptive and analytical. According to recipients, usually accounting is divided into financial accounting and management accounting or management. The first is defined as the branch of accounting focusing on the preparation and presentation of a set of financial statements for the purpose of providing information that is useful in making economic in nature by most users, especially external.

Managerial Accounting and Cost Accounting Compared

Managerial accounting is conceived as an instrument, based on the information on the constituent elements of costs, is responsible for developing and communicating timely and relevant information to facilitate operational decisions, tactics and strategy of the company serve as a basis for planning and control of management actions.

Whereas, on the other hand, Cost accounting is an information system to predetermine, record, store, distribute, monitor, analyze, interpret and report the costs of production, distribution, administration and financing. It is related to the accumulation, analysis and interpretation of the costs of acquisition, production, distribution, administration ...