Administrative Accounting

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DEFINITION of 'Administrative Accounting'

The financial reporting of factors that influence decision making, operational control and managerial planning. Administrative accounting focuses on management planning and control to accomplish the company's administrative goals.

INVESTOPEDIA EXPLAINS 'Administrative Accounting'

Administrative accounting involves a formal methodology for gathering, reporting and evaluating financial data that deals with management planning and control. The reports can help administrators and managers evaluate the day-to-day activities of the operation.

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  1. What is the difference between work in progress (WIP) and finished goods in accounting?

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  2. Why should sunk costs be ignored in future decision making?

    A sunk cost is a cost that cannot be recovered or changed and is independent of any future costs a business may incur. Since ... Read Full Answer >>
  3. How is reconciliation treated under generally accepted accounting principles (GAAP)?

    The generally accepted accounting principles, or GAAP, provide different reconciliation rules for balancing many kinds of ... Read Full Answer >>
  4. Where did the concept of reconciliation in accounting come from?

    Financial accountants perform reconciliation to ensure that the balances of two accounts are in agreement. The process by ... Read Full Answer >>
  5. Are all fixed costs considered sunk costs?

    In accounting, finance and economics, all sunk costs are fixed costs. However, not all fixed costs are considered to be sunk. ... Read Full Answer >>
  6. What is the difference between work in progress (WIP) and raw materials in accounting?

    Raw materials and works in progress (WIP) are distinct categories in financial accounting for business inventory. Each applies ... Read Full Answer >>
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