Ch 1 Powerpoint

8/17/2019 Ch 1 Powerpoint

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The Accountant’s Role in theOrganization

CHAPTER 1

© 2009 Pearson Prentice Hall. All rights reserved.


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Accounting Discipline Overview

Managerial Accounting –

• easure!anal"ze!report #nancial an$ non#nancial in%oration• &upport anagerial $ecision'a(ing in pursuit o% copan" goals

)inancial Accounting –

• Prepare #nancial stateents in accor$ance with *AAP

• Report #nancial in%oration to e+ternal sta(ehol$ers

Ta+ Accounting –

• Prepare #nancial in%oration in accor$ance with ,nternal Revenue Co$e

• &tructure transactions to iniize ta+ cost o% $oing -usiness

Au$iting –

• Chec( the wor( o% other accountants.e/g/0 internal au$itor0 e+ternalau$itor0 ta+ au$itor



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Ma2or Di3erences 4etween

)inancial 5 Managerial AccountingManagerialAccounting

FinancialAccounting

Purpose Decision a(ingCounicate to

outsi$ersPrimaryUsers

,nternal anagers E+ternal users

Focus/Emphasis

)uture Past

Rules Cost vs/ -ene#t *AAP copliant6au$ite$

Time Span 7aries with 2o- Monthl"0 8uarterl"

BehavioralIssues

,nten$e$ to in9uenceeplo"ees

Doesn’t $irectl" a3ecteplo"ees



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&trateg" 5 Manageent Accounting

&trateg" –

• How an organization atches its capa-ilities with ar(etopportunities to accoplish copan" o-2ectives

&trategic Cost Manageent –

• )ocuses on cost as a coponent o% strateg"



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&trateg" 5 Manageent Accounting

T"pical anageent accounting 8uestions:

• ;ho are our iportant custoers an$ what $o the" want<

• ;hat su-stitute pro$ucts e+ist an$ how is our pro$uct$i3erent<

• ;hat is our critical capa-ilit"<

• Do we have enough cash0 or shall we -orrow cash<



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Manageent Accounting an$ 7alue

7alue –

• The use%ulness a custoer gains %ro a pro$uct orservice

Creating value –

• The goal that un$erlies planning an$ ipleentingstrateg"



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Manageent Accounting an$ 7alue

7alue Chain –

The se8uence o% -usiness %unctions in which value is a$$e$ topro$ucts

1/ Research 5 Developent=/ Design

>/ Pro$uction

?/ Mar(eting

@/ Distri-ution

/ Custoer &ervice



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Be" &uccess )actors

Per%orance $iensions that custoers re8uire:

1/ Cost an$ ecienc"

=/ ualit"

>/ Tie?/ ,nnovation



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Planning 5 Control &"stes

Planning –• select goals

• pre$ict results

• $eci$e how to attain goals

• counicate plans to the organization

Budget – the most important planning tool

Control –

• ipleent the $ecision

• evaluate per%orance

• provi$e %ee$-ac( to the organization



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A )ive'&tep Decision Ma(ing Processin Planning 5 Control

1/ ,$enti%" the pro-le an$uncertainties

=/ O-tain in%oration

>/ Ma(e pre$ictions a-out the %uture

?/ Ma(e $ecisions -" choosing -etweenalternatives

@/ ,pleent the $ecision0 evaluateper%orance0 an$ learn


Planning

Control


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Manageent Accounting *ui$elines

Cost – 4ene#t Anal"sis• a -asic rule6 -ene#ts ust e+cee$ costs o% $ecisions

4ehavioral 5 Technical Consi$erations• Decisions ust consi$er people an$ -e technicall" correct

Di3erent costs are use$ %or $i3erent purposes

• E+/0 Cost o% a pro$uct a" inclu$e 2ust $irect costs or %ullli%etie costs



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T"pical Organizational &tructure an$the Manageent Accountant



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Pro%essional Ethics

&tan$ar$s o% ethical con$uct %or anageentaccountants .&ource: ,MA


1. Competence

2. Confidentiality

3. ntegrity

!. Credi"ility

Documents

Ch 1 Powerpoint