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What is managerial accounting?

What is Managerial Accounting? Also called cost accounting or management accountancy, managerial accounting deals with compiling information to allow managers to make decisions and plan for future business

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3 Types of Companies in Managerial Accounting

It is important to identify the type of company you are working within managerial accounting. Depending on the type of company, you will identify different costs and set up reports differently. There are

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The Value Chain

Typically, when we think of a company, we think of the product or service that the company sells. With a company like Dell, we think of the computers the company sells. In order for Dell to sell computers,

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Cost objects: direct and indirect costs

Managerial accounting is the art of planning, decision making, and controlling in business and the cost object helps us assign cost. In order to do that, we must identify what we want to track. Are we

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Product and Period Costs

Most companies use products as the main basis for their cost objects. Looking at the cost of products is extremely important to pricing of those products. As we classify costs, one of the most useful classifications

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Income Statements for Service Companies

Service companies have the most basic income statement of all the types of companies. Since service based companies do not sell a product, the income statement will not contain cost of goods sold. Therefore,

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