Department of Accounting & Information Systems | Eli …
Objectives of Accounting Information Systems | Bizfluent
You likely have a general concept of accounting. Information about the transactions and events of a business is captured and summarized into reports that are used by persons interested in the entity. But, you likely do not realize the complexity of accomplishing this task. It involves a talented blending of technical knowledge and measurement artistry that can only be fully appreciated via extensive study of the subject.
Introduction To Accounting Information Systems
Various reporting methods can be employed to facilitate managerial decision making. Consider that the same internal data can be generated and displayed in many ways. There is not a single correct method for “slicing and dicing” a company’s overall results into unitized information sets. And, there is no reason to think that a manager should be forced to make decisions based upon a single display of data. Modern information systems empower managers to look at the same data from multiple perspectives, and good managers will avail themselves of these tools as they consider data and make decisions.
Accounting - Southeast Missouri State University
Managerial accounting information is intended to serve the specific, and varied, needs of management. Business managers are charged with business planning, controlling, and decision making. As such, they may desire specialized reports, budgets, product costing data, and other details that are generally not reported on an external basis. Further, management may dictate the parameters under which such information is to be accumulated and presented. For instance, GAAP may require that certain product development costs be deducted in computing income; on the other hand, management may see these costs as a long-term investment and stipulate that internal decision making be based upon income numbers that exclude such costs. This is their prerogative. Hopefully, internal reporting is being done logically and rationally, but it need not follow any particular set of mandatory guidelines.