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Managerial Accounting and Cost Concepts Competency 3014.1.3: Cost Systems Topic: Cost Concepts Definitions 1. Managerial accounting-the name given to accounting systems design for internal users. 2. Financial accounting-the name given it to accounting i

Managerial Accounting and Cost Concepts

Competency 3014.1.3: Cost Systems

Topic:  Cost Concepts



Definitions

1.    Managerial accounting-the name given to accounting systems design for internal users.

2.    Financial accounting-the name given it to accounting information provided four and used by external users.

3.    Strategic planning- broad, Long range planning usually conducted by top management

4.    Capital budgeting- systematic planning for long term investments in operating assets.

5.    Operational budgeting- managerial planning decisions regarding current and immediate future operations that are characterized buy regularity and frequency.

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