Chapter 1 - Managerial Accounting: An
Overview
Managerial Accounting is concerned
with providing information to managers for use within the organisation
A segment is
a part or activity of an organization about which managers would like cost, revenue or profit
data.
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Managerial Accounting helps managers perform three vital activities:
1. planning
2. controlling
3. decision making
Planning involves
establishing goals and specifying how to achieve them
Controlling involves
gathering feedback to ensure that the plan is being properly executed or modified as
circumstances change.
Decision Making involves
selecting a course of action from competing alternatives
, A budget is
a detailed plan for the future that is usually expressed in formal quantitative terms
A performance report
compares budgeted data to actual data in an effort to identify and learn from excellent
performance and to identify and eliminate sources of unsatisfactory performance.
Three main questions to ask (yourself) in decision making:
1. What should we be selling?
2. Who should we be serving?
3. How should we execute?
The IMA (Institute of Management Accountants) estimates
that more than 80% of professional accountants in the US work in nonpublic accounting
environments
An Ethics Perspective to Management Accountants:
1. maintain a high level of professional competence
2. treat sensitive matters with confidentiality
3. maintain personal integrity
4. to disclose information in a credible fashion
A Strategic Management Perspective
is developing a strategy that defines how a company plans to succeed in the market place
A strategy is a
"game plan" that enables a company to attract customers by distinguishing itself from
competitors
Customer value propostions
are the reasons a target customer chooses one company over another
Customer Value Propositions fall into three broad catagories
1. Customer intimacy
2. Operational excellence
3. Product leadership
Customer Intimacy Strategy
Overview
Managerial Accounting is concerned
with providing information to managers for use within the organisation
A segment is
a part or activity of an organization about which managers would like cost, revenue or profit
data.
Brainpower
Read More
Previous
Play
Next
Rewind 10 seconds
Move forward 10 seconds
Unmute
0:01
/
0:15
Full screen
Managerial Accounting helps managers perform three vital activities:
1. planning
2. controlling
3. decision making
Planning involves
establishing goals and specifying how to achieve them
Controlling involves
gathering feedback to ensure that the plan is being properly executed or modified as
circumstances change.
Decision Making involves
selecting a course of action from competing alternatives
, A budget is
a detailed plan for the future that is usually expressed in formal quantitative terms
A performance report
compares budgeted data to actual data in an effort to identify and learn from excellent
performance and to identify and eliminate sources of unsatisfactory performance.
Three main questions to ask (yourself) in decision making:
1. What should we be selling?
2. Who should we be serving?
3. How should we execute?
The IMA (Institute of Management Accountants) estimates
that more than 80% of professional accountants in the US work in nonpublic accounting
environments
An Ethics Perspective to Management Accountants:
1. maintain a high level of professional competence
2. treat sensitive matters with confidentiality
3. maintain personal integrity
4. to disclose information in a credible fashion
A Strategic Management Perspective
is developing a strategy that defines how a company plans to succeed in the market place
A strategy is a
"game plan" that enables a company to attract customers by distinguishing itself from
competitors
Customer value propostions
are the reasons a target customer chooses one company over another
Customer Value Propositions fall into three broad catagories
1. Customer intimacy
2. Operational excellence
3. Product leadership
Customer Intimacy Strategy
