Introduction

Managerial accounting is a type of accounting that greatly differs from the financial accounting branch you have studied thus far. In this lesson, you will start to learn about managerial accounting, and how financial and managerial accounting differ. From there, you will learn how to define costs and about how they are assigned to products in managerial accounting. Finally, you will explore how income statements are produced for a manufacturing organization.

Learning Objectives

After completing this module, you should be able to

• define managerial accounting;
• explain the differences between managerial and financial accounting;
• define the costs involved in manufacturing and how to assign costs to individual products;
• explain the various components of manufacturing costs; and
• prepare income statements for a manufacturing company.

Lesson Readings & Activities

By the end of this lesson, make sure you have completed the readings and activities found in the Lesson 1 Course Schedule.