Principles of Accounting, Chapter 17: Introduction to Managerial Accounting:

Please review this chapter’s “Objectives” and “Key Terms” before and after reading. After you complete the reading, be sure to take this chapter’s “Fill in the Blanks” and “Multiple Choice” Self-Quizzes.

Chapter 17 discusses how management accounting is different from accounting that presents financial statements to outsiders. The chapter then provides an overview of the types of business management activities business leaders perform. It also describes the tools (like budgets) and other concepts that management accounting uses to help business leaders perform their management duties.

Discussion Assignment

Accounting for management decisions can be different from accounting to provide financial statements. One aspect of accounting for management decisions is the budgeting process.

Describe the following types of budgets and how they differ from each other: Operating budgets, capital budgets, and financing budgets.