Managerial Accounting - Essay Example

But the fixed cost remains the same on every sales volume. Functions of Managerial Accounting: Managerial accounting (or management accounting) involves the preparation and use of accounting information designed to assist managers and in planning and controlling the operations of the business, and in decision-making. In short, managerial accounting information is designed to meet the needs of insiders, rather than decision-makers outside the business entity. The greatest function of managerial accounting is to provide managers with the information that is most relevant to particular business decisions.

Ethical and legal issues: -The Code of Ethics recognizes that the objectives of the accountancy profession are to work to the highest standards of professionalism, to attain the highest levels of performance, and generally to meet the public interest requirement. Assume that Barnes, CPA, is performing income tax services for Regis Company: Regis insists that Barnes prepare the company's income tax return in a manner that understates the amount of taxes owed. What should Barnes answer: Barnes cannot ethically comply with the client's instructions.

Therefore, Barnes should resign from the engagement.