Chapter 1

Chapter Ch t 1
The Changing Role g of Managerial Accounting in a y Dynamic Business Environment

McGraw-Hill/Irwin

Copyright © 2009 by The McGraw-Hill Companies, Inc. All rights reserved.

Learning Objective 1

McGraw-Hill/Irwin

Copyright © 2009 by The McGraw-Hill Companies, Inc. All rights reserved.

Define Managerial Accounting g g

Managerial accounting is the process of Identifying Measuring Analyzing Interpreting Communicating information

1-3

Learning Objective 2

McGraw-Hill/Irwin

Copyright © 2009 by The McGraw-Hill Companies, Inc. All rights reserved.

Managing Resources, Activities, and P d People l
An organization . . .
Directing

Acquires Resources

Organized set of activities

Decision Making

Controlling g

Planning

Hires People
1-5

Learning Objective 3

McGraw-Hill/Irwin

Copyright © 2009 by The McGraw-Hill Companies, Inc. All rights reserved.

How Managerial Accounting Adds Value to the Organization Add V l t th O i ti
• Providing information for decision making and planning. • Assisting managers in directing and controlling g g g g activities. g g p y • Motivating managers and other employees towards organization’s goals. • Measuring performance of activities, managers, and other employees. • Assessing the organization’s competitive position.
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Learning Objective 4

McGraw-Hill/Irwin

Copyright © 2009 by The McGraw-Hill Companies, Inc. All rights reserved.

Managerial versus Financial Accounting A ti
Financial Accounting IInterested parties, outside th organization. t t d ti t id the i ti Required and must conform to generally accepted accounting principles. Regulated by the Financial Accounting Standards Board,, and,, to a lesser g degree, the Securities and Exchange Commission. Source of Data The organization's basic accounting system, plus Almost exclusively drawn from the organization's various other sources, such as rates of effective basic accounting system which... [continues]

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