clinical informatics board review

Terms in this set (165)

Management accounting or managerial accounting is concerned with the provisions and use of accounting information to managers within organizations, to provide them with the basis to make informed business decisions that will allow them to be better equipped in their management and control functions. In contrast to financial accountancy information, management accounting information is:
• primarily forward-looking, instead of historical;
• model based with a degree of abstraction to support decision making generically, instead of case based;
• designed and intended for use by managers within the organization, instead of being intended for use by shareholders, creditors, and public regulators;
• usually confidential and used by management, instead of publicly reported;
• computed by reference to the needs of managers, often using management information
systems, instead of by reference to general financial accounting standards.
ore generally, much of managerial accounting involves gathering information about costs for planning and control decisions. (Ref: http://sites.csn.edu/bgutschick/mgr_ch01.pdf)

Managerial accounting information is ultimately based on internal specifications for data accumulation and presentation. These internal specifications should be clear and consistent. Great care must be taken to insure that resulting reports are sufficiently logical to enable good decisions. Specific reporting periods may be replaced with real-time data that enable quick response. And, forecasted outcomes become critical for planning. Further, cost information should be disseminated in a way that managers can focus on (and be held accountable for!) their business components ("segments")