There are three primary objectives of accounting information system .To capture and record data relating to an organization’s financial transactions. The purpose of accounting is to provide financial information that is useful in making business and economic decisions. It is a system that records, classifies, and summarizes financial transactions to provide this information. Accounting is also used to prepare financial statements that show an organization’s financial position, performance, and cashflow.
1. To provide information that can be used to make decisions about the organization’s financial affairs objectives of Accounting. To provide information that is useful in measuring the organization’s financial performance .To provide information that can be used to assess the organization’s ability to generate cash and to meet its financial obligations. To provide information that can be used to make decisions about investing, financing, and operating activities.
2. To produce financial statements that meet generally accepted accounting principles. To make sure the financial statements are complete and accurate. To produce the financial statements in a timely fashion. To determine the financial impact of projected changes in the business. Departmentalization of an organization is the process of grouping activities into logical units. The type of departmentalization used by an organization depends on the organization’s purpose and structure. The most common forms of departmentalization are functional, divisional, and matrix. The type of departmentalization used by a company affects how the company is organized and how it functions. The objectives of accounting standards are to provide guidance to accountants and financial statement preparers on appropriate accounting practices and to promote comparability of financial statements across different entities. The objectives of accounting are to provide financial information that is useful in making business and economic decisions. Financial accounting provides information about a company’s financial position, performance, and cash flow. Managerial accounting provides information about a company’s internal operations and helps managers make decisions about how to allocate resources .There are a few key objectives of accounting that need to be kept in mind in order to ensure that accounting practices are effective. First, accounting should provide accurate and timely financial information that is relevant to the decisions of users. Second, accounting should be able to measure, record, and communicate economic activity in a way that is consistent and comparable. Finally, accounting should promote transparency and accountability in economic decision-making.
Objectives of management Accounting.
The objectives of management accounting are to provide information that will assist managers in planning, decision making, and controlling. The goal is to ensure that the organization is able to achieve its objectives in an efficient and effective manner. Some of the specific objectives of management accounting include:
1. assisting managers in planning and decision making
a. What are some of the things that you think need to be considered when planning the budget for a new project? b. What strategies do you think can be used to control the costs of a project once it gets underway? c. How do you think managers should use cost information when making decisions about whether or not to continue a project?
2. providing information for cost control and decision making .
Helping managers plan and control production helping accountants prepare financial statements assisting in tax planning providing information for inventory valuation providing information for financial planning assisting in auditing What information is contained in the cost accounting system? The cost accounting system can include information on the following: raw materials direct labor manufacturing overhead indirect costs administrative expenses marketing expenses sales What are the types of cost accounting systems? There are three types of cost accounting systems: job order costing process costing activity-based costing Job order costing is used in companies that produce products or services that are unique to the customer’s order. Process costing is used in companies that produce products or services that are identical, such as in a manufacturing setting. Activity-based costing is used in companies that want to track costs by activity. What are the steps in the job order costing process? The steps in the job order costing process are as follows:
1. Determine the cost of each direct material used in the production process.
2. Determine the cost of each direct labor hour used in the production process.
3. Determine the cost of each manufacturing overhead cost incurred in the production process.
4. Allocate the total manufacturing overhead cost to each job based on the overhead activity levels incurred for each job.
5. Determine the total cost of each job by adding the direct material, direct labor, and manufacturing overhead costs.
6. Apply the selling price to each job to determine the profit or loss for the job.
7. assisting managers in evaluating and controlling performance
8. providing information for short-term and long-term decision making
9. assisting managers in making decisions about pricing, investment, and other strategic decisions
10. providing information for budgeting and forecasting. There are a number of ways that managers can evaluate and control performance. One way is to set goals and objectives for employees and then track progress towards those goals. Another way is to provide feedback to employees on a regular basis. Additionally, managers can hold employees accountable for their performance by conducting performance reviews and providing feedback on areas of improvement.
Objectives of accounting are to provide information that is useful in making business and economic decisions and to ensure the financial integrity of organizations.