The document outlines a discussion prompt for students regarding managerial accounting, emphasizing the differences and similarities with financial accounting. It introduces Eddison Electronic Company and the hiring of Susan Thompson, who is experienced in financial accounting but lacks managerial accounting knowledge. The task encourages students to explore how managerial accounting can aid in planning and controlling business operations, using real-world examples.

1. Primary Task Response:
Within the Discussion Board area, write 350–450 words that
respond to the following questions with your thoughts, ideas,
and comments. This will be the foundation for future
discussions by your classmates. Be substantive and clear, and
use examples to reinforce your ideas.
Additional Information:
Eddison Electronic Company (EEC) provides electricity for
several states in the United States. You have been employed as
a cost accountant at this organization. You have recently hired
Susan Thompson, who has experience with financial accounting.
Financial accounting includes preparing journal entries that
provide a record of the day-to-day activities of the company and
preparing financial statements, such as an income statement, a
statement of owners’ equity balance sheet, and a cash flow
statement. Although Susan has experience with and fully
understands financial accounting, she has no experience with
managerial accounting.
With your fellow classmates, please discuss what Susan should
know about managerial accounting.
Explain the similarities and differences between financial and
managerial accounting.
Provide examples of the reports used for financial reporting and
how those reports differ from managerial accounting reports.
Determine how managers might use accounting information for
planning and controlling purposes.