Professional Documents
Culture Documents
CH 01
CH 01
CH 01
Chapter 1:
Introduction to Managerial Accounting
Slides Prepared by: Scott Peterson Northern State University
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State the primary goal of managerial accounting. Describe how budgets are used in planning Describe how performance reports are used in the control process. Distinguish between financial and managerial accounting. Define cost terms used in planning, control and decision making. Explain the two key ideas in managerial accounting. Discuss the duties of the controller, the treasurer and the chief financial officer (CFO).
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State the primary goal of managerial accounting. Describe how budgets are used in planning Describe how performance reports are used in the control process. Distinguish between financial and managerial accounting. Define cost terms used in planning, control and decision making. Explain the two key ideas in managerial accounting. Discuss the duties of the controller, the treasurer and the chief financial officer (CFO).
Planning
Planning has to do with budgeting in a managerial context. It is in this way that a companys goals are communicated to all employees. Budgets include profit budgets, cash-flow budgets, production budgets and many others. Related Learning Objectives:
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State the primary goal of managerial accounting. Describe how budgets are used in planning. Describe how performance reports are used in the control process. Distinguish between financial and managerial accounting. Define cost terms used in planning, control and decision making. Explain the two key ideas in managerial accounting. Discuss the duties of the controller, the treasurer and the chief financial officer (CFO).
Controlling
The notion of managerial control has to do with measuring and evaluating the performance of both the manager and the operation(s) for which the manager is responsible.
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There is an important distinction to be made here. A manager is evaluated, at least in part, based on her overall performance. Each operation for which she is responsible is evaluated in order to optimize future goals and objectives.
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State the primary goal of managerial accounting. Describe how budgets are used in planning. Describe how performance reports are used in the control process. Distinguish between financial and managerial accounting. Define cost terms used in planning, control and decision making. Explain the two key ideas in managerial accounting. Discuss the duties of the controller, the treasurer and the chief financial officer (CFO).
Decision Making
An integral part of the planning and controlling process, decision making includes both rewarding or punishing managers for their performance AND dropping, adding or otherwise changing some aspect of operations going forward. Related Learning Objectives:
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State the primary goal of managerial accounting. Describe how budgets are used in planning. Describe how performance reports are used in the control process. Distinguish between financial and managerial accounting. Define cost terms used in planning, control and decision making. Explain the two key ideas in managerial accounting. Discuss the duties of the controller, the treasurer and the chief financial officer (CFO).
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State the primary goal of managerial accounting. Describe how budgets are used in planning. Describe how performance reports are used in the control process. Distinguish between financial and managerial accounting. Define cost terms used in planning, control and decision making. Explain the two key ideas in managerial accounting. Discuss the duties of the controller, the treasurer and the chief financial officer (CFO).
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State the primary goal of managerial accounting. Describe how budgets are used in planning. Describe how performance reports are used in the control process. Distinguish between financial and managerial accounting. Define cost terms used in planning, control and decision making. Explain the two key ideas in managerial accounting. Discuss the duties of the controller, the treasurer and the chief financial officer (CFO).
Cost Terms
The term cost appears in many contexts and carries a number of meanings. Different categories of cost terms are merely different ways to look at costs or to slice and dice cost information. They are not necessarily complementary to or mutually exclusive of other cost categories. Related Learning Objectives:
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State the primary goal of managerial accounting. Describe how budgets are used in planning. Describe how performance reports are used in the control process. Distinguish between financial and managerial accounting. Define cost terms used in planning, control and decision making. Explain the two key ideas in managerial accounting. Discuss the duties of the controller, the treasurer and the chief financial officer (CFO).
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State the primary goal of managerial accounting. Describe how budgets are used in planning. Describe how performance reports are used in the control process. Distinguish between financial and managerial accounting. Define cost terms used in planning, control and decision making. Explain the two key ideas in managerial accounting. Discuss the duties of the controller, the treasurer and the chief financial officer (CFO).
Sunk Costs
Sometimes called past costs. These costs are NOT relevant to the decision making process. Related Learning Objectives:
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State the primary goal of managerial accounting. Describe how budgets are used in planning. Describe how performance reports are used in the control process. Distinguish between financial and managerial accounting. Define cost terms used in planning, control and decision making. Explain the two key ideas in managerial accounting. Discuss the duties of the controller, the treasurer and the chief financial officer (CFO).
Opportunity Costs
These are the values of potential benefits foregone when a decision is made. Related Learning Objectives:
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State the primary goal of managerial accounting. Describe how budgets are used in planning. Describe how performance reports are used in the control process. Distinguish between financial and managerial accounting. Define cost terms used in planning, control and decision making. Explain the two key ideas in managerial accounting. Discuss the duties of the controller, the treasurer and the chief financial officer (CFO).
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State the primary goal of managerial accounting. Describe how budgets are used in planning. Describe how performance reports are used in the control process. Distinguish between financial and managerial accounting. Define cost terms used in planning, control and decision making. Explain the two key ideas in managerial accounting. Discuss the duties of the controller, the treasurer and the chief financial officer (CFO).
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State the primary goal of managerial accounting. Describe how budgets are used in planning. Describe how performance reports are used in the control process. Distinguish between financial and managerial accounting. Define cost terms used in planning, control and decision making. Explain the two key ideas in managerial accounting. Discuss the duties of the controller, the treasurer and the chief financial officer (CFO).
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Decision making relies on incremental analysisan analysis of revenues and costs that increase or decrease if a particular decision alternative is selected. You get what you measure!
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State the primary goal of managerial accounting. Describe how budgets are used in planning. Describe how performance reports are used in the control process. Distinguish between financial and managerial accounting. Define cost terms used in planning, control and decision making. Explain the two key ideas in managerial accounting. Discuss the duties of the controller, the treasurer and the chief financial officer (CFO).
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State the primary goal of managerial accounting. Describe how budgets are used in planning. Describe how performance reports are used in the control process. Distinguish between financial and managerial accounting. Define cost terms used in planning, control and decision making. Explain the two key ideas in managerial accounting. Discuss the duties of the controller, the treasurer and the chief financial officer (CFO).
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State the primary goal of managerial accounting. Describe how budgets are used in planning. Describe how performance reports are used in the control process. Distinguish between financial and managerial accounting. Define cost terms used in planning, control and decision making. Explain the two key ideas in managerial accounting. Discuss the duties of the controller, the treasurer and the chief financial officer (CFO).
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State the primary goal of managerial accounting. Describe how budgets are used in planning. Describe how performance reports are used in the control process. Distinguish between financial and managerial accounting. Define cost terms used in planning, control and decision making. Explain the two key ideas in managerial accounting. Discuss the duties of the controller, the treasurer and the chief financial officer (CFO).
Copyright
2001 John Wiley & Sons, Inc. All rights reserved. Reproduction or translation of this work beyond that permitted in Section 117 of the 1976 United States Copyright Act without the express written permission of the copyright owner is unlawful. Request for further information should be addressed to the Permissions Department, John Wiley & Sons, Inc. The purchaser may make back-up copies for his/her own use only and not for distribution or resale. The Publisher assumes no responsibility for errors, omissions, or damages, caused by the use of these programs or from the use of the information contained herein.