ACC-650: Managerial Accounting course covers managerial accounting concepts and procedures for internal reporting, including the study of cost behavior, cost systems, budgeting, and performance evaluation. An ACC-650: managerial accounting coursework includes:
- case studies
- group projects, and
- class discussion.
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What is the difference between managerial accounting and financial accounting in healthcare?
Managerial accounting is the process that enables decision-makers to set and evaluate a healthcare organization’s goals by determining what information they need to make a particular decision and how to analyze and communicate this information whereas financial accounting in healthcare is a process that provides a useful level of detail for external users, such as investors and creditors, but it does not provide enough detailed information for the types of decisions made in the day-to-day operation of the healthcare organization or for the types of decisions that guide the healthcare organization in the long term.
Characteristics of managerial accounting.
1. Selective Nature
Management accounting chooses only a few pieces of information out of much information provided by the financial accounting system. This is because not all financial accounting information is necessary to management.
2. It places more emphasis on future
Since there is no need for the collection of historical data, management accounting aims to highlight what should have been. Thus, the use of standard costing, cost variances, and budgetary control highlights the futuristic nature of management accounting.
3. It provides only information but no decision
The financial accounting information is offered on a different basis and indifferent manner. This helps the management in proper planning and to make quality decisions. Therefore, it is up to the intelligence of management executives to take effective decisions out of available information.
4. The Problem of Choice
It makes an attempt to solve the managerial problems. This involves taking into account a comparative analysis of various available choices and only that best alternative is normally selected which seems to be more effective and profitable.
5. It studies causes and effects relationship
Under the management accounting system, there is the study of the cause and effects relationship prevailing between the variables which affect healthcare organization activity and profitability through analysis.
6. Significance to elements of costs
Under the management accounting system, the total cost is divided into fixed, variable, and semi-valuable. Additionally, it stresses the nature and features of each such costs with reference to varying production levels.
7. It is not bounded by the rules of financial accounting
Management accounting does not follow the rules of financial accounting. However, it is concerned with information that is highly useful to the healthcare organization’s management for decision-making and control purposes.
8. Recognition of non-monetary variables
The management takes into account non-monetary variables such as the efficiency of medical staff, labor turnover, policy of management, organization culture, market conditions, and consumer or patient behavior before making a decision. Under these conditions, the healthcare organization’s management considers the monetary information for supporting their decisions.
9. It modifies, analyses, and interprets data
The financial accounting information is changed, examined, and understood with new scopes. In this way, information helps the healthcare organization’s management to take the line of action towards control of the destiny of an undertaking.
10. No specific rules and conventions
The financial accounting system has rules and conventions to record business transactions in the books of accounts. However, there are no such rules and conventions to management accounting. Additionally, the tools and techniques applied by the healthcare organization’s management vary from time to time and one concern to another.
11. Achievement of objectives
Management accounting in a healthcare organization fixes the standard for various business transactions on the basis of the historical data provided by financial accounting. There is a comparison of data with standards. In case of any deviations, management takes actions to achieve the organization’s objectives.
12. Improving Efficiency
The healthcare organization management can fix the target for each department or division through the budgetary control system.