Contents

• Introduction 2
• Apple Inc. - Background 2
• Management Accounting 3
• Apple – Management Accounting 4
• Conclusion 7

Description

Financial information plays a significant role in today’s competitive business world. The famous saying “Money never sleeps”, is true to its every sense. Even though critics argue that money is only a bi-product of the overall business, money is vital and one of the parameters for valuing success. The whole world runs on money. The bottom line of any business is to achieve financial success and the way to do it is to understand the financial information of the business (Caplan, 2006). Hence, financial information is of great value to everybody especially to the decision makers in an organization.
The process of identifying, measuring and communicating financial information is known as accounting. Accounting can be said to be the heart of any business (Reimers, 2007). There are mainly two branches of accounting: financial accounting and management accounting. This report is aimed at understanding the importance of Management accounting to a business. That is, how management information can give vital financial information to the management which will help in decision making. In order to do so, the report takes Apple Inc as an example and recommends various management accounting techniques and methods that can be used by Apple and those that are not relevant.