Chapter 1

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McGraw-Hill/Irwin
 Managerial Accounting: A Business
Partnership with Management

Managerial accounting is the process of:

 Identifying
 Measuring
 Analyzing
 Interpreting
 Communicating information

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 Managing Resources, Activities, and
People
An organization . . .
Decision
Making
Acquires
Resources: (i.e.
funding, patents,
and buildings) Planning
Organized set
of activities

Hires People
Controlling Directing

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CONSENT OF MCGRAW HILL LLC.
üProviding information for decision
making and planning.
üAssisting managers
 Providing information in directing
for decision making and planning.
and controlling activities.
 Assisting managers in directing and controlling activities.
üMotivating managers and other
employees
 Motivating managers
the organization’s
organization’s
toward
goals.
and other employees toward the
goals.
üMeasuring
 Measuring performance
subunits, performance
other employeesactivities,
of subunits, activities,of
managers, and
within the organization.
managers, and

other employees within the

organization.
 Assessing the organization’s competitive position and
working with other managers to ensure the organization’s long-run
competitiveness in itsthe
üAssessing organization’s
industry.
competitive position
with other managers to ensure the and working
organization’s long-run
competitiveness in its industry.
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 Managerial versus Financial Accounting
Accounting System
(accumulates financial and
managerial accounting data in the
cost accounting system)

Managerial Accounting Financial Accounting

Information for decision Published financial
making, planning, and statements and other
controlling an financial reports.
organization’s
operations.

Internal External
Users Users
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 Users of Information
Managerial Accounting Financial Accounting
Users of Managers, within the organization. Interested parties, outside the
Information organization.
Regulation Not required and unregulated because it is Required and must conform to generally
intended only for management. accepted accounting principles. Regulators
include the International Accounting
Standards Board, the Financial Accounting
Standards Board (U.S.), and the U.S.
Securities and Exchange Commission.
Source of Data The organization's core accounting system , Almost exclusively drawn from the
plus various other sources, provide organization's core accounting system ,
financial data as well as nonfinancial data which accumulates financial information.
such as product defect rates, quantities of
material and labor used in production,
occupancy rates in hotels, and average
take-off delays in airlines.
Nature of Reports often focus on subunits within the Published reports focus on the enterprise in
Reports and organization, such as departments, its entirety . Generally consolidated from
Procedures divisions, geographical regions, or product the reports of geographic or business
lines. Based on a combination of historical segment divisions, and based almost
data, estimates, and projections of future exclusively on historical transaction data.
events.

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 Line and Staff Positions

• A line position is • A staff position

directly involved in supports and assists
the provision of goods line positions.
or services.
 Example: A cost
• Example: A production
accountant in the
supervisor in a
manufacturing plant
manufacturing plant

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 Strategic Cost Management and the
Value Chain

Product
Design
Production
Research
and
Development Marketing

Securing raw
materials and Distribution
other resources
Customer
Start Service

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 Capacity: năng suất

Theoretical Practical capacity

capacity is the allows for normal
upper limit on the occurrences such as
amount of goods or equipment
services if everything downtime and
works perfectly. worker fatigue or
illness.

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