Chapter 1
The importance of
Managerial Accounting
Define
Managerial Accounting
It is the process of
identifying
-
measuring
-
analyzing
-
interpreting
-
communicating information
•
MANAGERIAL ACCOUNTING
|
-
Valve creation 9h of cost management
☐" "
strategic goals ( planning) systems for planning ,
How do managerial decisions affect strategic goods ? ( decision making , decision making and
Howe we achieved our goals ? I control ) -
control for rake creation .
One of the major organizational goals is to create raw e. To create value organizations need to set ,
strategic goals cey.to increase profitability vice revenue growth or cost reduction etc) You as .
to measure
managers should know which are these strategic goals 1 PLANNING) know how
, ,
these goals and know how
your managerial decisions 1 DECISION MAKING) affect these goals
, .
After you implement
your decision , you as a
manager you should
, be able to evaluate whether
you achieved your goats ( CONTROL) .
→ STRATEGIC GOALS ↳
PLANNING)(
HAVE WE ACHIEVED RIGHT DECISIONS
OUR GOALS ? C CONTROL)
e-
(DECISION MAKING)
Planning Developing a detailed financial and operating description of anticipated operations
:
(setting goals , predicting results decide how to achieve goals) ,
Decision Making Choosing among available alternatives
:
Control Ensuring that the organization operates in the intended manner and achieves goals;
:
analyzing comparing actual performance to plans lperferorwation feedback motivation)
-
, ,
An
organization DIRECTING
gEqMA
. . .
ACQUIRES RESOURCES DECISION
_f KING
ORGANIZED PLANNING
OF ACTIN " "
HIRES PEOPLE → • Nq ROLLING
, Cost Management Systems
Objectives
1. Measure the cost of resources consumed .
2.
Identify and eliminate non rawe -
added costs .
3. Determine efficiency and effectiveness of major activities .
4. Identify and evaluate new activities that can improve performance .
Exercise
a.
Measuring the cost of the
inventory of tablet computers on hand in a retail electronics
r
store .
providing information for decision making and planning and (2)
a) ,
assisting managers
in
directing and controlling operational activities .
2. Comparing the actual and planned cost of a
consulting engagement completed by an
engineering firm .
(t) assisting managers in controlling operations
(2) measuring the performance of activities
3. Much of managerial accounting information is based on a cost benefit theme .
4. Managerial accounting has changed in recent years because of the global financial crisis ,
increased global competition the emergence of new industries and an increased focus on the
,
costumer .
How managerial accounting organization
adds value to the
i.
Providing information for planning ( g setting goals budgeting balanced scoreboards)
e. , ,
2.Providing information for decision making .
3.
Motivating managers and other employees towards organization 's goals .
4.
Measuring performance of subunits activities managers and other employees ( controlling
, , ,
activities using balance scorecard)
5.
Assisting managers in
directing activities .
6.
Assessing the
organization's competitive position .
Example
The Balanced Scorecard
wheowwoik.to
owners
FINANCIAL PERSPECTIVE which
activities must
in
µ q q we excel
CUSTOMER PERSPECTIVE VALUE OPERATIONS PERSPECTIVE
CREATION
how do
customers
us
[ t [ now
corn
continue
see
INNOVATION PERSPECTIVE
we
to improve
The importance of
Managerial Accounting
Define
Managerial Accounting
It is the process of
identifying
-
measuring
-
analyzing
-
interpreting
-
communicating information
•
MANAGERIAL ACCOUNTING
|
-
Valve creation 9h of cost management
☐" "
strategic goals ( planning) systems for planning ,
How do managerial decisions affect strategic goods ? ( decision making , decision making and
Howe we achieved our goals ? I control ) -
control for rake creation .
One of the major organizational goals is to create raw e. To create value organizations need to set ,
strategic goals cey.to increase profitability vice revenue growth or cost reduction etc) You as .
to measure
managers should know which are these strategic goals 1 PLANNING) know how
, ,
these goals and know how
your managerial decisions 1 DECISION MAKING) affect these goals
, .
After you implement
your decision , you as a
manager you should
, be able to evaluate whether
you achieved your goats ( CONTROL) .
→ STRATEGIC GOALS ↳
PLANNING)(
HAVE WE ACHIEVED RIGHT DECISIONS
OUR GOALS ? C CONTROL)
e-
(DECISION MAKING)
Planning Developing a detailed financial and operating description of anticipated operations
:
(setting goals , predicting results decide how to achieve goals) ,
Decision Making Choosing among available alternatives
:
Control Ensuring that the organization operates in the intended manner and achieves goals;
:
analyzing comparing actual performance to plans lperferorwation feedback motivation)
-
, ,
An
organization DIRECTING
gEqMA
. . .
ACQUIRES RESOURCES DECISION
_f KING
ORGANIZED PLANNING
OF ACTIN " "
HIRES PEOPLE → • Nq ROLLING
, Cost Management Systems
Objectives
1. Measure the cost of resources consumed .
2.
Identify and eliminate non rawe -
added costs .
3. Determine efficiency and effectiveness of major activities .
4. Identify and evaluate new activities that can improve performance .
Exercise
a.
Measuring the cost of the
inventory of tablet computers on hand in a retail electronics
r
store .
providing information for decision making and planning and (2)
a) ,
assisting managers
in
directing and controlling operational activities .
2. Comparing the actual and planned cost of a
consulting engagement completed by an
engineering firm .
(t) assisting managers in controlling operations
(2) measuring the performance of activities
3. Much of managerial accounting information is based on a cost benefit theme .
4. Managerial accounting has changed in recent years because of the global financial crisis ,
increased global competition the emergence of new industries and an increased focus on the
,
costumer .
How managerial accounting organization
adds value to the
i.
Providing information for planning ( g setting goals budgeting balanced scoreboards)
e. , ,
2.Providing information for decision making .
3.
Motivating managers and other employees towards organization 's goals .
4.
Measuring performance of subunits activities managers and other employees ( controlling
, , ,
activities using balance scorecard)
5.
Assisting managers in
directing activities .
6.
Assessing the
organization's competitive position .
Example
The Balanced Scorecard
wheowwoik.to
owners
FINANCIAL PERSPECTIVE which
activities must
in
µ q q we excel
CUSTOMER PERSPECTIVE VALUE OPERATIONS PERSPECTIVE
CREATION
how do
customers
us
[ t [ now
corn
continue
see
INNOVATION PERSPECTIVE
we
to improve
