Chapter 1, Problem 1DQ

To determine

Explain the term managerial accounting.

Explanation of Solution

Managerial Accounting:

Managerial accounting refers to the internal accounting system that gives both financial and non-financial information for the internal users of the organization. This helps the manager in making crucial business decisions.

Managerial accounting information helps users in the following ways:

• Problems or errors done at the organizational level can be detected.
• The course of action to achieve a particular goal of the organization can be planned.
• Implementation of the plan can be monitored.
• Decisions regarding choosing the best among the available alternatives can be made.