The Changing Role of Managerial Accounting in a Dynamic Business Environment
CHAPTER 1
THE CHANGING ROLE OF MANAGERIAL
ACCOUNTING IN A DYNAMIC BUSINESS ENVIRONMENT
Learning Objectives
1. Define managerial accounting and describe its role in the management process.
2. Explain four fundamental management processes that help organizations attain their goals.
3. List and describe five objectives of managerial accounting activity.
4. Explain the major differences between managerial and financial accounting.
5. Explain where managerial accountants are located in an organization, in terms of formal organization, deployment in cross-functional teams, and physical location.
6. Describe the roles of an organization's chief financial officer (CFO) or controller, treasurer, and internal auditor.
7. Briefly describe some of the major contemporary themes in managerial accounting.
8. Understand and explain the concepts of strategic cost management and the value chain.
9. Understand the ethical responsibilities of a managerial accountant.
10. Discuss the professional organizations, certification process, and ethical standards in the field of managerial accounting.
Chapter Overview
I. The Management Process in Organizations A. What is managerial accounting? B. Management activities 1. Decision making 2. Planning 3. Directing operational activities 4. Controlling
II. How Managerial Accounting Adds Value to the Organization A. Provides information for decision making and planning B. Assists in directing and controlling C. Motivates managers and employees D. Measures performance E. Assesses an organization's competitive position F. Balanced Scorecard
III. Managerial Versus Financial Accounting A. Focus of reports B. External vs. internal users of information C. Degree of regulation D. Information focus
IV. Role of the Managerial Accountant A. Line and staff positions B. Management accountants 1.
THE CHANGING ROLE OF MANAGERIAL
ACCOUNTING IN A DYNAMIC BUSINESS ENVIRONMENT
Learning Objectives
1. Define managerial accounting and describe its role in the management process.
2. Explain four fundamental management processes that help organizations attain their goals.
3. List and describe five objectives of managerial accounting activity.
4. Explain the major differences between managerial and financial accounting.
5. Explain where managerial accountants are located in an organization, in terms of formal organization, deployment in cross-functional teams, and physical location.
6. Describe the roles of an organization's chief financial officer (CFO) or controller, treasurer, and internal auditor.
7. Briefly describe some of the major contemporary themes in managerial accounting.
8. Understand and explain the concepts of strategic cost management and the value chain.
9. Understand the ethical responsibilities of a managerial accountant.
10. Discuss the professional organizations, certification process, and ethical standards in the field of managerial accounting.
Chapter Overview
I. The Management Process in Organizations A. What is managerial accounting? B. Management activities 1. Decision making 2. Planning 3. Directing operational activities 4. Controlling
II. How Managerial Accounting Adds Value to the Organization A. Provides information for decision making and planning B. Assists in directing and controlling C. Motivates managers and employees D. Measures performance E. Assesses an organization's competitive position F. Balanced Scorecard
III. Managerial Versus Financial Accounting A. Focus of reports B. External vs. internal users of information C. Degree of regulation D. Information focus
IV. Role of the Managerial Accountant A. Line and staff positions B. Management accountants 1.