Ethical Issues Of Financial Accounting - 984 Words

Another important point is the reporting to whom. Financial accounting is meant for external reporting to all who are interested in the company’s activities. But in management accounting it is altogether an internal reporting aimed at helping managers in discharging their responsibilities. Financial accounting basically contains monetary information. But managerial accounting will contain both monetary and non-monetary issues that are helpful to the management. For example financial accounting will show only finance related data on a new product developed. But managerial accounting in addition to those data may also show other non-monetary data like expected time to develop the product, possible yield and risk associated with it, expected†¦show more content†¦Important parts of corporate codes of conduct are integrity, performance of duties, and compliance with the rule of law. They also uniformly prohibit the acceptance of kickbacks and improper gifts, insider trading, and misappropriation of corporate information and assets. Describes at least three managerial accounting techniques available and their application within a business or organization: Management accounting techniques give business leaders the tools to measure and increase profit margins while lowering operating expenses. The scope of analytical techniques is large enough to fill college textbooks, and the Institute of Management Accountants offers certifications highly valued by the accounting industry. Through careful application of management accounting techniques, leaders are able to steer their organizations in the right direction and enhance profitability. Breakeven Analysis: A breakeven analysis allows members of management to gauge how much of a product or service they need to sell to recoup operating costs and turn a profit. This involves calculating variable costs, fixed costs and expected sales volumes. Although the calculation is straight-forward in nature, determining the variable and fixed costs takes careful analysis. Administrative costs, rent and insurance are among the expenses that factor into the equation. If a breakeven analysis is performed properly, businesses stand a better chance of generating a