Acct 2301: Managerial Accounting

1. Welcome to... Acct 2301: Managerial Accounting

2. Everyone Can Do Well In This Class…It’s Up to You • Understand the learning objectives for each exam. • Read the book—it is written well for you. • Do the quizzes and you will learn. • Come to class and learn more. We will learn by discussing concepts and solving problems. • Practice the old tests.

3. Chapter One Introduction to Managerial Accounting

4. Financial Accounting • Provides information used primarily by investors, creditors, and others outside a business • Example – Balance Sheet & Income Statement • Characterized by objectivity, reliability, and historical nature

5. Managerial Accounting • Provides information used primarily by executives, managers, and employees who work inside the business • Internal users need info to Plan, Control & Make Decisions. • Characterized by relevance and timeliness • Used by all profit & non-profit organizations and in all lines (manufacturing, service & retail).

6. Financial Vs. Managerial Accounting

7. Planning Definition: Setting objectives and identifying methods to achieve those objectives. Example Objective (what do you want?): Get a good job for summer Identify Methods to achieve (A plan) Work with the Career Management Center on an internship. Talk with family & friends for ideas. Knock on doors. [Persistence necessary, be realistic.]

8. Controlling Define: Monitoring a plan’s implementation and taking corrective action as needed. Monitoring Implementation Where am I in getting that summer job? Only dead ends so far got some promising leads have an offer Corrective action as needed. Review the leads and start again this weekend.

9. Decision Making Define: The process of choosing among competing alternatives. Options: Take a summer job in Dallas at $15 per hour related to career goal--learn a lot. Take a summer job at a resort for $13 per hour not related to career--fun!

10. Terms Strategic positioning: either Cost leadership (WalMart) Superior products/differentiation (NeimanMarcus) Value chain: Set of activities to design, develop, produce, market, deliver, & service. 3. Continuous Improvement Search for ways to increase efficiency by reducing waste, increase quality, & reduce costs.

11. Multiple Choice 1. Which accounting is primarily concerned with producing financial information and reports for external users: managerial accounting internal reporting financial accounting cost objects investors

12. 1. Which accounting is primarily concerned with producing financial information and reports for external users: managerial accounting internal reporting financial accounting cost objects investors

13. 2. The process of choosing among competing alternatives is called: planning decision making controlling continuous improvement none of these

14. 2. The process of choosing among competing alternatives is called: planning decision making controlling continuous improvement none of these

15. 3. Managerial accounting involves all of the following, except: internally focused emphasis on the future no mandatory rules externally focused financial and nonfinancial information; subjective information possible

16. 3. Managerial accounting involves all of the following, except: internally focused emphasis on the future no mandatory rules externally focused financial and nonfinancial information; subjective information possible

17. End of Chapter One