Why Study Accounting Organizations Accounting Accounting Systems …

Short Description
Engineering Accounting. An Overview. Richard S. Barr. 2. Why Study Accounting? . Accounting is pervasive. . Used in all types of organizations …

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Content
Introduction to Accounting
1
1
Engineering Accounting
An Overview
Richard S. Barr
2
Why Study Accounting?
?Accounting is pervasive
?Used in all types of organizations
- For-profit companies
- Not-for-profit companies
- Governmental organizations
3
Organizations
Common characteristics:
?An objective or group of objectives
?A set of strategies to achieve its objectives
?Managers
-
?An organizational structure
-
?A need for information
4
Accounting
?A key element of management
?You must understand what is being
reported
-
?Managers’ performance is often
measured by accounting data
?This data is used for decision making
5
Accounting Systems
?Are the primary quantitative
information system in most
organizations
- Types of information
- Purposes of accounting systems
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Types of Information
In accounting systems:
?Attention-directing
-
?Problem-solving
-
?Scorekeeping
-Introduction to Accounting
2
7
Purposes of Acctg Systems
?Internal reporting to managers for
planning and control
?Internal reporting for special decisions,
policies, and long-range plans
?External reporting
8
Accounting Systems
Four Standard Types
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Types of Accounting Systems
1. Financial
2. Tax
3. Management
4. Cost
Different views for different audiences
Our focus: financial and managerial
10
Financial Accounting
?Primarily for the external decision
maker
-
-
-
?External reporting follows legal and
GAAP requirements
?Objective: provide standard view of
organization’s past performance
11
Tax Accounting
?Based on IRS regulations
-
?Some accounting rules differ from
financial
-
?Objective:
-
12
Management Accounting
?Designed primarily for the internal
decision maker
?Reporting is designed to assist
management in
- Decision making
- Planning
- Control…