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CONTENTS

 CHAPTER 1: MANAGERIAL ACCOUNTING: AN

OVERVIEW
 CHAPTER 2: MANAGERIAL ACCOUNTING AND
COST CONCEPTS
MANAGERIAL ACCOUNTING
 CHAPTER 3: COST-VOLUME-PROFIT
RELATIONSHIPS
 CHAPTER 4: PROFIT PLANNING
 CHAPTER 5: FLEXIBLE BUDGETS AND
PERFORMANCE ANALYSIS
CHAPTER 6: STANDARD COSTS AND VARIANCES

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Contents:
CHAPTER 1: (1) What is managerial accounting?
MANAGERIAL ACCOUNTING: (2) Why does managerial accounting matter to
your career? and
AN OVERVIEW
(3) What skills do managers need to succeed?
discussing two topics:
PowerPoint Authors:
 The role of ethics in business
 Corporate social responsibility

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license distributed with a certain product or service or otherwise on a password-protected website for classroom use. license distributed with a certain product or service or otherwise on a password-protected website for classroom use.

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What is accounting ?
 Accounting is a system of identifying, recording
and communicating monetary information
WHAT IS MANAGERIAL ACCOUNTING  Two main types of accounting :
- Financial
- Managerial

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license distributed with a certain product or service or otherwise on a password-protected website for classroom use. license distributed with a certain product or service or otherwise on a password-protected website for classroom use.

Managerial and Financial Accounting Managerial Accounting

Accounting System
(accumulates financial and - Focus on internal users
managerial accounting data in the
cost accounting system)
- Emphasis on future: planning, controlling,
makinh decision
Financial Accounting
Managerial Accounting - Emphasis on timeliness
provides information for
provides information to managers of an
- Forcus on segment reporting
external users:stockholders, organization’s who plan - No national or Inter national rules
creditors and others who are and control its
out side the organization operations.
External Internal Internal
Users Users Users
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The Meaning of Managerial Accounting

Planning
• To provide information for planning
the organization’s actions.  The detailed formulation of action to achieve a
1
particular end is the management activity called
planning.
• To provide information for controlling
Example
2 the organization’s actions.
Setting objectives Improve Quality

• To provide information for making

3 effective decisions. Identifying methods to Supplier Evaluation
achieve those objectives Program
LO-1 LO-1
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license distributed with a certain product or service or otherwise on a password-protected website for classroom use. license distributed with a certain product or service or otherwise on a password-protected website for classroom use.

Decision Making Controlling

 The process of choosing among competing  The managerial activity of monitoring a plan’s
alternatives is called decision making. implementation and taking corrective action as
needed is controlling.`

Compare
????
???? Actual Expected
Performance Performance
??

LO-1 LO-1
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Managerial Accounting
Comparison of Financial and
Managerial Accounting
Financial Accounting Managerial Accounting
- Focus on internal users
- Emphasis on future: planning, controlling, Externally focused Internally focused
Must follow externally imposed rules No mandatory rules
makinh decision
- Emphasis on relevance and timeliness Objective financial information Financial and information; subjective
information possible nonfinancial
- Forcus on segment reporting
- No national or Inter national rules Historical orientation Emphasis on the future
Information about the firm as a whole Internal evaluation and decisions
based on very detailed information
More self-contained Broad, multidisciplinary
Internal
Users LO-2
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1-13 license distributed with a certain product or service or otherwise on a password-protected website for classroom use.

What Skills Do Managers Need to What Skills Do Managers Need to

Succeed? Your Career? Succeed? Your Career?
 Strategic Management Skills  Process management skills
 Can think critically about situation to develop strategies
 Continuos improvement the business process
to grow the business
 Product improvement  Enhacement of the value chain to increase
 Customer knowledge customer willingness to purchase a product or
 Operational excellence
service
 Risk management skill
 Can accurately assess the risk associated with a
decision, analyze those risk and choose a proper
course of action

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Value Chain The Theory of Constraints (TOC

 Research and develop
 Product design
 Manufacturing
 marketing
 distrubution
 Customer service

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license distributed with a certain product or service or otherwise on a password-protected website for classroom use. license distributed with a certain product or service or otherwise on a password-protected website for classroom use.

Managerial Accounting and Ethical Managerial Accounting and Ethical

Conduct Conduct (cont.)
 The objective of profit maximization should be  Behavior can be right or wrong; it can be proper
constrained by the requirement that profits be or improper; and the decisions we make can be
achieved through legal and ethical means. fair or unfair.
 Ethical behavior involves choosing actions that  Companies in business for the long term find that
are right, proper, and just. it pays to treat all with honesty and loyalty.

LO-5 LO-5
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license distributed with a certain product or service or otherwise on a password-protected website for classroom use. license distributed with a certain product or service or otherwise on a password-protected website for classroom use.

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Certification
 Three major forms of certification for managerial
accountants:
 Certificate in Management Accounting
 Certificate in Public Accounting
 Certificate in Internal Auditing
 Each certification offers particular advantages to
a managerial accountant.
 All three certifications offer proof of achievement
at a minimum level of professional competence.

LO-6
© 2014 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a
license distributed with a certain product or service or otherwise on a password-protected website for classroom use.