Topic 1 W Essay

Submitted By Neaz-Ahmed
Words: 2485
Pages: 10

Chapter
1-1

CHAPTER 1

MANAGERIAL
ACCOUNTING
Managerial Accounting, Fifth Edition
Chapter
1-2

Study
Study Objectives
Objectives
1.

Explain the distinguishing features of managerial accounting.

2.

Identify the 3 broad functions of management.

3.

Define the 3 classes of manufacturing costs.

4.

Distinguish between product and period costs.

5.

Explain the differences between a merchandising and a manufacturing income statement. Chapter
1-3

Study
Study Objectives
Objectives
6.

Indicate how cost of goods manufactured is determined.

7.

Explain the difference between a merchandising and a manufacturing balance sheet.

8.

Identify trends in managerial accounting. Chapter
1-4

Managerial
Managerial Accounting
Accounting

Managerial
Managerial
Accounting
Accounting
Basics
Basics
Comparing managerial and financial accounting
Management
functions
Organizational
structure
Business ethics
Chapter
1-5

Managerial
Managerial
Cost
Cost
Concepts
Concepts
Manufacturing costs Product vs. period costs

Manufacturing
Manufacturing
Costs
Costs in in Financial
Financial
Statements
Statements
Income statement Cost of Goods
Manuafctured
Balance sheet
Cost concepts –
A review
Product Costing for Service
Industries

Managerial
Managerial
Accounting
Accounting
Today
Today
Serviceindustry trends Managerial accounting practices

Managerial
Managerial Accounting
Accounting Basics
Basics
Definition of Managerial Accounting
A field of accounting that provides economic and financial information for managers and other internal users.

Also called Management Accounting.

Chapter
1-6

Managerial
Managerial Accounting
Accounting Basics
Basics
Distinguishing Features
Applies to all types of business Service, Merchandising, and Manufacturing.
Applies to all forms of business organizations –
Proprietorships, Partnerships, and Corporations.
Applies to not-for-profit as well as profitoriented companies.

Chapter
1-7

SO 1 Explain the distinguishing features of managerial accounting

Managerial
Managerial Accounting
Accounting Basics
Basics
Distinguishing Features (Continued)
Changed role in collecting and reporting costs to management as a result of increasingly automated business environment.
Now more responsible for strategic cost management – assisting in evaluating how well resources are employed by the company.
Teams with people from production, marketing, engineering, etc.
Aid in making critical strategic decisions.

Chapter
1-8

SO 1 Explain the distinguishing features of managerial accounting

Comparing
Comparing Managerial
Managerial and and Financial
Financial
Accounting
Accounting
Similarities
Both managerial and financial accounting deal with economic events of a business –
Thus, interests overlap.
Both require that economic events be quantified and communicated to interested parties –
Determining unit cost is part of managerial accounting,
Reporting cost of goods manufactured is a part of financial accounting.
Chapter
1-9

SO 1 Explain the distinguishing features of managerial accounting

Comparing
Comparing Managerial
Managerial and and Financial
Financial
Accounting
Accounting
Differences

Illustration 1-1

Chapter
1-10

SO 1 Explain the distinguishing features of managerial accounting

Managerial
Managerial Accounting
Accounting Basics
Basics

Review
Question

Managerial accounting:
a. Is governed by the Securities and Exchange
Commission.
b. Places emphasis on special-purpose information. c. Pertains to the entity as a whole and is highly aggregated. aggregated
d. Is limited to cost data.
Chapter
1-11

SO 1 Explain the distinguishing features of managerial

Managerial
Managerial Accounting
Accounting Basics
Basics
Management Functions
Management’s activities and responsibilities can be classified into the following three broad functions:

Planning,
Directing, and
Controlling.
Chapter
1-12

SO 2 Identify the 3 broad functions of management.

Management
Management Functions
Functions
Planning
Look ahead and establish…