Managerial Accounting:

1
1
Chapter One

• Managerial Accounting
• An Overview

2
Managing Resources, Activities, and People
Directing

• An organization . . .

Decision Making
Acquires Resources
Organized set of activities
Planning
Controlling
Hires People
3
Line and Staff Positions

• A line position is directly involved in achieving
  of the basic objectives of an organization.
• Example A production supervisor in a
  manufacturing plant.

• A staff position supports and assists line
  positions.
• Example A cost accountant in the manufacturing
  plant.

4
Sample Organization Chart
5
Financial versus Managerial Accounting
Exh. 1-1
Accounting System (accumulates financial
and managerial accounting data)
Managerial Accounting Information for
decision making, and control of an
organizations operations.
Financial Accounting Published financial statement
s and other financial reports.
Internal Users
External Users
6
Financial versus Managerial Accounting
Exh. 1-2

• FINANCIAL MANAGERIAL
• Users Stkholders, SEC, IRS Mgt, Dept mgrs
  , Creditors, Analysts, BOD
• Unions
• Regulation Must use GAAP SEC, Noneinternal
  use only
• FASB, AICPA Need not be GAAP
• Source of Data Most info from basic Basic
  acctg system plus
• acctg system extensive stat data,
  industry data budgets
• Reporting Annual qtrly Annual, qtrly,
  monthly,
• daily
• Audited Yes No, unless internal audit

7
Controller

• Responsible for the acctg recordkeeping
• functions
• Monthly annual reporting
• Budgeting
• Financial planning and analysis
• Cost control. .
• Accounting information systems.
• Tax regulatory reporting

8
Treasurer

• Responsible for raising capital custodial
  safeguarding organizations assets.
• Supervises relationships with financial
  institutions.
• Works with investors potentialinvestors.
• Manages investments insurance
• Establishes credit policies.

9
Internal Auditor

• Responsible for reviewing the accounting
  procedures, records, reports operations
• Expresses an opinion to topmanagement regarding
  theeffectiveness of theorganizations
  accountingsystem.

10
Cost Management Systems

• Objectives
• Provides managers with fin non-fin info to
  assist mgrs in managing org.
• Assists mgrs in directing controlling
• Motivates managers to achieve orgs goals
• Measures performance of org as a whole its
  sub-units
• Assists org in maintaining its competitive
  position

11
Professional Ethics

• Ethical business practices build trust and
  promote loyal, productive relationships with
  customers, employees and suppliers.
• Many companies have written codes of ethics
  which serve as guides for employees to follow.

12
Professional Ethics

• Competence
• Confidentiality
• Integrity
• Objectivity
• Resolution of Ethical Conflict