You are the manager of an accounting department and would like to hire another managerial accountant to focus on internal accounting. The chief executive officer (CEO) is not convinced that a managing accountant position is needed. Prepare a 2-page memo f

You are the manager of an accounting department and would like to hire another managerial accountant to focus on internal accounting. The chief executive officer (CEO) is not convinced that a managing accountant position is needed. Prepare a 2-page memo for the CEO on the following:

  • Explain the objectives and characteristics of an internal accounting system.
  • Include an explanation of the importance of this information to the company.
  • Include an explanation of ethics in business and the managerial accountant’s role in upholding the code of ethics.

Objectives for assignment

Describe the functions of, and explain the nature and scope of managerial accounting

Understand the role of performance measures in an organization

Explain the nature, purpose, and scope of responsibility accounting

Understand the role of management accounting in planning, control, and adaptation

Differentiate between various costing systems and various forms of responsibility centers

Understand the relativity of managerial accounting data and information, and to interpret, present, evaluate and use it effectively and appropriately in internal management decision making

Assess and demonstrate the relevance and applicability of managerial accounting information to decision making by nonfinancial management

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