THE DUALISM OF THE ACCOUNTING ACTIVITY OF THE COMPANY. CHARACTERISTICS OF THE MANAGERIAL ACCOUNTING AND IMPLICATIONS IN THE MANAGEMENT OF THE COMPANY

The diversity of accounting information need led to the construction of two representations of the same reality: an “internal” representation and an “external” representation. Formally speaking, this dual representation consists of two elements of the accounting system of the enterprise: the financial accounting – “the external face” of the entity – and the managerial accounting – “the internal face” of the entity. The organisation of managerial accounting activity is up to each entity, but it is essential to realize its importance because it provides confidential information to managers for the evaluation, control and future management of the businesses. The practical activity of cost calculation and analysis should be by excellence a major component of the company’s management that would ensure the realisation of competitive costs so that the pricing decision competes at obtaining a profit that would lead to the possibility of the company’s future development.