Intro to mang control1

_____focuses on an organization's external financial processes

• Financial accounting

• Managerial accounting

• Accounting information systems

_____focuses on an organization's internal financial processes

• Financial accounting

• Managerial accounting

• Accounting information systems

Primary users are Internal—the company’s managers and employees

• Financial accounting

• Managerial accounting

• Management control system

Primary users are External—investors, creditors, and government authorities

• Financial accounting

• Managerial accounting

• Management control system

Help investors and creditors make investment and credit decisions

• Financial accounting

• Managerial accounting

• Management control system

Help managers and employees plan and control operations

• Financial accounting

• Managerial accounting

• Management control system

Concern about how reports will affect employee behavior

• Financial accounting

• Managerial accounting

• Management control system

Concern about adequacy of disclosures; behavioral implications are secondary

• Financial accounting

• Managerial accounting

• Management control system

A company that sells —time, skills, and/or knowledge—instead of products.

• Service Company

• Merchandising Company

• Manufacturing Company

A company that resells products previously bought from suppliers

• Service Company

• Merchandising Company

• Manufacturing Company