Professional Documents
Culture Documents
Management accounting measures analyzes and reports financial and nonfinancial information that helps managers
make decisions to fulfill the goals of an organization. It focuses on internal reporting and is not restricted by generally
accepted accounting principles (GAAP).
Financial accounting focuses on reporting to external parties such as investors, government agencies, and banks. It
measures and records business transactions and provides financial statements that are based on generally accepted
accounting principles (GAAP).
When should a company prepare budget? What are the advantages of preparing
budgets?
By creating a budget, you’ll be able to hold the company accountable for its expenditures, reduce costs, and prepare for
a worst case scenario. It serves as a measurement tool that can visually illustrate if you have enough cash to operate or
to grow.
Required:
Required:
Prepare a performance report that uses flexible budget and a static budget.