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What is Managerial Accounting?<\/h3>\n\n
This chapter sets the framework for managerial accounting, which is the field of accounting focused on providing management and senior leadership in a company with the information needed to make financial decisions.<\/p>\n\n
Click through the pages to review the elements of this topic.<\/p>\n","coverMedium":{"params":{"decorative":true,"contentName":"Image","expandImage":"Expand Image","minimizeImage":"Minimize Image","title":"Photo by Maxim Potyomkin on Unsplash","file":{"path":"images\/file-6635220a86b60.jpg","mime":"image\/jpeg","copyright":{"license":"U"},"width":3880,"height":2954}},"library":"H5P.Image 1.1","metadata":{"contentType":"Image","license":"U","title":"Untitled Image"},"subContentId":"59e6e595-8f0e-4cde-8486-3d6929fd1224"}},"chapters":[{"params":{"content":[{"content":{"params":{"text":"
This chapter sets the framework for managerial accounting, which is the field of accounting focused on providing management and senior leadership in a company with the information needed to make financial decisions. In other accounting courses, you would have learned financial accounting skills that focus on reporting the financial results of the company to external agents (e.g., government, bank, shareholders, other companies, etc.). In comparison, management accounting focuses on understanding the cost behaviours within an organization and to analyze results in order to maximize profits. In your role as a management accountant, you assist in making well-planned and properly executed financial decisions for the financial well-being . <\/p>\n\n
Historically, managerial accountants were focused on cost accounting, but has changed to play a different role. As more work is automated, new methods are used to understand how amounts and types of costs have changed. Currently, managerial accountants are focused more on helping management evaluate how successfully the company is utilizing its resources and are involved in more strategic decision-making functions alongside other subject matter experts. <\/p>\n"},"library":"H5P.AdvancedText 1.1","metadata":{"contentType":"Text","license":"U","title":"Untitled Text"},"subContentId":"059c9f5e-0a4f-4ab2-a207-589413b9c0a3"},"useSeparator":"auto"}]},"library":"H5P.Column 1.18","metadata":{"contentType":"Column","license":"U","title":"What is Managerial Accounting?"},"subContentId":"70088392-a2ef-4d27-8635-280c475b0644"},{"params":{"content":[{"content":{"params":{"introPage":{"showIntroPage":false,"startButtonText":"Start Quiz","introduction":""},"progressType":"dots","passPercentage":50,"questions":[{"params":{"media":{"disableImageZooming":false},"correct":"false","behaviour":{"enableRetry":true,"enableSolutionsButton":true,"enableCheckButton":true,"confirmCheckDialog":false,"confirmRetryDialog":false,"autoCheck":false},"l10n":{"trueText":"True","falseText":"False","score":"You got @score of @total points","checkAnswer":"Check","submitAnswer":"Submit","showSolutionButton":"Show solution","tryAgain":"Retry","wrongAnswerMessage":"Wrong answer","correctAnswerMessage":"Correct answer","scoreBarLabel":"You got :num out of :total points","a11yCheck":"Check the answers. The responses will be marked as correct, incorrect, or unanswered.","a11yShowSolution":"Show the solution. The task will be marked with its correct solution.","a11yRetry":"Retry the task. Reset all responses and start the task over again."},"confirmCheck":{"header":"Finish ?","body":"Are you sure you wish to finish ?","cancelLabel":"Cancel","confirmLabel":"Finish"},"confirmRetry":{"header":"Retry ?","body":"Are you sure you wish to retry ?","cancelLabel":"Cancel","confirmLabel":"Confirm"},"question":"
Managerial accounting primarily focuses on reporting financial results to external agents.<\/p>\n"},"library":"H5P.TrueFalse 1.8","metadata":{"contentType":"True\/False Question","license":"U","title":"True\/False Question"},"subContentId":"aa107e7b-5c33-4b82-a73b-a489b44279a3"},{"params":{"media":{"disableImageZooming":false},"correct":"true","behaviour":{"enableRetry":true,"enableSolutionsButton":true,"enableCheckButton":true,"confirmCheckDialog":false,"confirmRetryDialog":false,"autoCheck":false},"l10n":{"trueText":"True","falseText":"False","score":"You got @score of @total points","checkAnswer":"Check","submitAnswer":"Submit","showSolutionButton":"Show solution","tryAgain":"Retry","wrongAnswerMessage":"Wrong answer","correctAnswerMessage":"Correct answer","scoreBarLabel":"You got :num out of :total points","a11yCheck":"Check the answers. The responses will be marked as correct, incorrect, or unanswered.","a11yShowSolution":"Show the solution. The task will be marked with its correct solution.","a11yRetry":"Retry the task. Reset all responses and start the task over again."},"confirmCheck":{"header":"Finish ?","body":"Are you sure you wish to finish ?","cancelLabel":"Cancel","confirmLabel":"Finish"},"confirmRetry":{"header":"Retry ?","body":"Are you sure you wish to retry ?","cancelLabel":"Cancel","confirmLabel":"Confirm"},"question":"
Management accountants assist in making well-planned and properly executed financial decisions for the financial well-being of a company.<\/p>\n"},"library":"H5P.TrueFalse 1.8","metadata":{"contentType":"True\/False Question","license":"U","title":"True\/False Question"},"subContentId":"d4ac3111-7c7f-4e00-9a82-b8d1b6e98a6b"},{"params":{"media":{"disableImageZooming":false},"correct":"true","behaviour":{"enableRetry":true,"enableSolutionsButton":true,"enableCheckButton":true,"confirmCheckDialog":false,"confirmRetryDialog":false,"autoCheck":false},"l10n":{"trueText":"True","falseText":"False","score":"You got @score of @total points","checkAnswer":"Check","submitAnswer":"Submit","showSolutionButton":"Show solution","tryAgain":"Retry","wrongAnswerMessage":"Wrong answer","correctAnswerMessage":"Correct answer","scoreBarLabel":"You got :num out of :total points","a11yCheck":"Check the answers. The responses will be marked as correct, incorrect, or unanswered.","a11yShowSolution":"Show the solution. The task will be marked with its correct solution.","a11yRetry":"Retry the task. Reset all responses and start the task over again."},"confirmCheck":{"header":"Finish ?","body":"Are you sure you wish to finish ?","cancelLabel":"Cancel","confirmLabel":"Finish"},"confirmRetry":{"header":"Retry ?","body":"Are you sure you wish to retry ?","cancelLabel":"Cancel","confirmLabel":"Confirm"},"question":"
Historically, managerial accountants were primarily concerned with cost accounting.<\/p>\n"},"library":"H5P.TrueFalse 1.8","metadata":{"contentType":"True\/False Question","license":"U","title":"True\/False Question"},"subContentId":"44a790b9-7019-49d5-a96c-7a6d4a69d247"},{"params":{"media":{"disableImageZooming":false},"correct":"false","behaviour":{"enableRetry":true,"enableSolutionsButton":true,"enableCheckButton":true,"confirmCheckDialog":false,"confirmRetryDialog":false,"autoCheck":false},"l10n":{"trueText":"True","falseText":"False","score":"You got @score of @total points","checkAnswer":"Check","submitAnswer":"Submit","showSolutionButton":"Show solution","tryAgain":"Retry","wrongAnswerMessage":"Wrong answer","correctAnswerMessage":"Correct answer","scoreBarLabel":"You got :num out of :total points","a11yCheck":"Check the answers. The responses will be marked as correct, incorrect, or unanswered.","a11yShowSolution":"Show the solution. The task will be marked with its correct solution.","a11yRetry":"Retry the task. Reset all responses and start the task over again."},"confirmCheck":{"header":"Finish ?","body":"Are you sure you wish to finish ?","cancelLabel":"Cancel","confirmLabel":"Finish"},"confirmRetry":{"header":"Retry ?","body":"Are you sure you wish to retry ?","cancelLabel":"Cancel","confirmLabel":"Confirm"},"question":"
With increasing automation, managerial accountants are now less involved in strategic decision-making functions.<\/p>\n"},"library":"H5P.TrueFalse 1.8","metadata":{"contentType":"True\/False Question","license":"U","title":"True\/False Question"},"subContentId":"b4ce150a-c84f-4fdf-bbd7-455ce9cff9f9"},{"params":{"media":{"disableImageZooming":false},"correct":"true","behaviour":{"enableRetry":true,"enableSolutionsButton":true,"enableCheckButton":true,"confirmCheckDialog":false,"confirmRetryDialog":false,"autoCheck":false},"l10n":{"trueText":"True","falseText":"False","score":"You got @score of @total points","checkAnswer":"Check","submitAnswer":"Submit","showSolutionButton":"Show solution","tryAgain":"Retry","wrongAnswerMessage":"Wrong answer","correctAnswerMessage":"Correct answer","scoreBarLabel":"You got :num out of :total points","a11yCheck":"Check the answers. The responses will be marked as correct, incorrect, or unanswered.","a11yShowSolution":"Show the solution. The task will be marked with its correct solution.","a11yRetry":"Retry the task. Reset all responses and start the task over again."},"confirmCheck":{"header":"Finish ?","body":"Are you sure you wish to finish ?","cancelLabel":"Cancel","confirmLabel":"Finish"},"confirmRetry":{"header":"Retry ?","body":"Are you sure you wish to retry ?","cancelLabel":"Cancel","confirmLabel":"Confirm"},"question":"
Management accounting is primarily concerned with understanding cost behaviors within an organization and analyzing results to maximize profits.<\/p>\n"},"library":"H5P.TrueFalse 1.8","metadata":{"contentType":"True\/False Question","license":"U","title":"True\/False Question"},"subContentId":"50417852-4c6c-4c9b-bd5e-1ecccb5cdfe3"}],"disableBackwardsNavigation":false,"randomQuestions":false,"endGame":{"showResultPage":true,"showSolutionButton":true,"showRetryButton":true,"noResultMessage":"Finished","message":"Your result:","scoreBarLabel":"You got @finals out of @totals points","overallFeedback":[{"from":0,"to":100}],"solutionButtonText":"Show solution","retryButtonText":"Retry","finishButtonText":"Finish","submitButtonText":"Submit","showAnimations":false,"skippable":false,"skipButtonText":"Skip video"},"texts":{"prevButton":"Previous question","nextButton":"Next question","finishButton":"Finish","submitButton":"Submit","textualProgress":"Question: @current of @total questions","jumpToQuestion":"Question %d of %total","questionLabel":"Question","readSpeakerProgress":"Question @current of @total","unansweredText":"Unanswered","answeredText":"Answered","currentQuestionText":"Current question","navigationLabel":"Questions"},"override":{"checkButton":true}},"library":"H5P.QuestionSet 1.20","metadata":{"contentType":"Question Set","license":"U","title":"T\/F Question Set"},"subContentId":"ae9f0330-8033-475d-87e3-a96da70d0dea"},"useSeparator":"auto"}]},"library":"H5P.Column 1.18","metadata":{"contentType":"Column","license":"U","title":"Check for Understanding"},"subContentId":"320ddeec-ad79-4fed-bc8e-b4bee00aeb62"}],"behaviour":{"baseColor":"#1768c4","defaultTableOfContents":true,"progressIndicators":true,"progressAuto":true,"displaySummary":true,"enableRetry":true},"read":"Read","displayTOC":"Display 'Table of contents'","hideTOC":"Hide 'Table of contents'","nextPage":"Next page","previousPage":"Previous page","chapterCompleted":"Page completed!","partCompleted":"@pages of @total completed","incompleteChapter":"Incomplete page","navigateToTop":"Navigate to the top","markAsFinished":"I have finished this page","fullscreen":"Fullscreen","exitFullscreen":"Exit fullscreen","bookProgressSubtext":"@count of @total pages","interactionsProgressSubtext":"@count of @total interactions","submitReport":"Submit Report","restartLabel":"Restart","summaryHeader":"Summary","allInteractions":"All interactions","unansweredInteractions":"Unanswered interactions","scoreText":"@score \/ @maxscore","leftOutOfTotalCompleted":"@left of @max interactions completed","noInteractions":"No interactions","score":"Score","summaryAndSubmit":"Summary & submit","noChapterInteractionBoldText":"You have not interacted with any pages.","noChapterInteractionText":"You have to interact with at least one page before you can see the summary.","yourAnswersAreSubmittedForReview":"Your answers are submitted for review!","bookProgress":"Book progress","interactionsProgress":"Interactions progress","totalScoreLabel":"Total score","a11y":{"progress":"Page @page of @total.","menu":"Toggle navigation menu"}}