Managerial Accounting by James Jiambalvo

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Managerial Accountingby James Jiambalvo

• Chapter One

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Objectives

• 1. State the primary goal of managerialaccounting
  .
• 2. Describe how budgets are used in planning
• 3. Describe how performance reports are used in
  the control process.
• 4. Distinguish between financial andmanagerial
  accounting.
• 5. Define cost terms used in planning,control
  and decision making.

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Objectives (continued)

• 6. Explain two key ideas in managerial
  accounting.
• 7. Discuss the impact of information technology
  on competition, business processes, and the
  interaction companies have with suppliers and
  customers.
• 8. Describe a framework for ethical decision
  making.
• 9. Discuss the duties of the controller, the
  treasurer, the CIO and the CFO

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Goal of Managerial Accounting

• Planning
• Control
• Decision Making

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Planning and Control Process
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Cost Terms

• Variable vs. Fixed Costs
• Sunk Costs
• Opportunity Costs
• Controllable vs. Non-controllable Costs
• Direct vs. Indirect Costs

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Two Key Ideas

• Incremental Analysis
• You Get What You Measure!

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The Information Age and Managerial Accounting

• The Value Chain
• Value Chain Management
• ERP
• SCM
• CRM

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Ethical Considerations

• Ethical and Unethical Behavior
• A Framework for Ethical Decision Making

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When Evaluating a Decision Ask

• What decision alternatives are available?
• What individuals or organizations have a stake in
  the outcome of my decision? A Framework for
  Ethical Decision Making
• Will an individual or an organization be harmed
  by any of the alternatives?
• What alternative will do the most good with the
  least harm?
• Would someone I respect find any of the
  alternatives objectionable?

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When Deciding On a Course of Action

• At a gut level, am I comfortable with the
  decision I am about to make?
• Will I be comfortable telling my friends and
  family about this decision?

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The Controller As the Top Management Accountant
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Other Top Functions

• Treasurer
• Chief Information Officer (CIO)
• Chief Financial Officer (CFO)

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Quick Review Question 1

• Which of the following is most likely to be a
  variable cost?

• Depreciation

• Materials costs

• Rent

• Advertising

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Quick Review Answer 1

• Which of the following is most likely to be a
  variable cost?

• Depreciation
• Materials costs
• Rent
• Advertising

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Quick Review Question 2

• Which of the following is most likely to be a
  fixed cost?

• Materials costs

• Rent

• Assembly labor cost

• Commissions

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Quick Review Answer 2

• Which of the following is most likely to be a
  fixed cost?

• Materials costs
• Rent
• Assembly labor cost
• Commissions

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Quick Review Question 3

• Costs incurred in the past are

• Opportunity costs

• Direct costs

• Sunk costs

• Variable costs

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Quick Review Answer 3

• Costs incurred in the past are

• Opportunity costs
• Opportunity costs
• Sunk costs
• Variable costs

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Quick Review Question 4

• What does it mean to Get What You Measure?

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Quick Review 4 Answer