Managerial Accounting
Commerce 354
Lecture Notes and Problems
Prepared by J. Kroeker Sauder School of Business University of British Columbia
NOTE: Please refer to the “Lecture Preparation Instructions” tab in Vista prior to each class for detailed instructions and reading assignments. Each lecture will require preparation.
Identify Issues Analyze Data Build Model Run Model Make Decision
Management Accounting:
Decision-making
The Corporate Environment:
Corporations are a conglomeration of people with a common purpose. The individuals seek to attain goals for the corporation, with the ultimate goal being profitability. In order to achieve this goal, management performs a variety of activities. 1) 2) 3) Planning: strategically deciding how, where and when to use the firm's limited resources Directing & Motivating: "operationalizing" the plan Control: Ensuring the plan is followed. (feedback, evaluation, rewards ....)
All three of these key management activities inherently revolve around decision-making and in each activity the management accountant plays a critical role. It is paramount that we first establish an understanding of what constitutes the area of management accounting.
Management Accounting Reports for Emphasis on Focus is on decision-making
Financial Accounting Reports for Emphasis on Focus is on summarizing
Must comply with:
Must comply with:
Prepared by J. Kroeker, 2013 © Sauder School of Business, UBC
Commerce 354
2
Decision-making is management. Decision-making is choosing between competing alternatives. To do this we need information. We need to learn to ask the right questions so we can gather the right information. As management accountants we are intimately involved with designing systems that extract information for decision-making.
Do you support this decision?
Prepared by J. Kroeker, 2013 © Sauder School of Business, UBC
Commerce 354
3
Decisions result in: short term, medium term, and, long term
Lecture Notes and Problems
Prepared by J. Kroeker Sauder School of Business University of British Columbia
NOTE: Please refer to the “Lecture Preparation Instructions” tab in Vista prior to each class for detailed instructions and reading assignments. Each lecture will require preparation.
Identify Issues Analyze Data Build Model Run Model Make Decision
Management Accounting:
Decision-making
The Corporate Environment:
Corporations are a conglomeration of people with a common purpose. The individuals seek to attain goals for the corporation, with the ultimate goal being profitability. In order to achieve this goal, management performs a variety of activities. 1) 2) 3) Planning: strategically deciding how, where and when to use the firm's limited resources Directing & Motivating: "operationalizing" the plan Control: Ensuring the plan is followed. (feedback, evaluation, rewards ....)
All three of these key management activities inherently revolve around decision-making and in each activity the management accountant plays a critical role. It is paramount that we first establish an understanding of what constitutes the area of management accounting.
Management Accounting Reports for Emphasis on Focus is on decision-making
Financial Accounting Reports for Emphasis on Focus is on summarizing
Must comply with:
Must comply with:
Prepared by J. Kroeker, 2013 © Sauder School of Business, UBC
Commerce 354
2
Decision-making is management. Decision-making is choosing between competing alternatives. To do this we need information. We need to learn to ask the right questions so we can gather the right information. As management accountants we are intimately involved with designing systems that extract information for decision-making.
Do you support this decision?
Prepared by J. Kroeker, 2013 © Sauder School of Business, UBC
Commerce 354
3
Decisions result in: short term, medium term, and, long term