PRODUCTION &SUPPLY

No, I don’t think that there should concerns about GAAP standards since there are no such comparable reporting standards for managerial accounting. GAAP is meant to provide information for external users while the primary objective of management accounting is to help the management of the firm (internal users) to take quality decision for controlling the business activities effectively. For companies, it is not a concern that GAAP is not consistent with management accounting. Companies feel that GAAP’s requirements help disclose sufficient information to external stakeholders. In fact, the conformance of GAAP with management accounting may lead the company to disclose more detailed internal and financial information. In a nutshell, there should be not be concerns that GAAP is inconsistent with management accounting. Management accounting is exclusively for available to internal management.

References

Kenton,W.(2019).Activity Based Costing. Retrieved, on 15th July 20, 2019, from

https://www.investopedia.com/terms/a/abc.asp

Rakocevic,S.B, & Jaksi, M.L (2012). Proceedings of the XIII International Symposium SymOrg; Innovative Management and Business Performance