THE CHANGING ROLE OF MANAGERIAL
ACCOUNTING IN A DYNAMIC BUSINESS ENVIRONMENT
Define managerial accounting and describe its role in the management process.
Explain four fundamental management processes that help organizations attain their goals.
List and describe five objectives of managerial accounting activity.
Explain the major differences between managerial and financial accounting.
Explain where managerial accountants are located in an organization, in terms of formal organization, deployment in cross-functional teams, and physical location.
Describe the roles of an organization's chief financial officer (CFO) or controller, treasurer, and internal auditor.
Briefly describe some of the major contemporary themes in managerial accounting.
Understand and explain the concepts of strategic cost management and the value chain.
Understand the ethical responsibilities of a managerial accountant.
Discuss the professional organizations, certification process, and ethical standards in the field of managerial accounting. Chapter Overview
The Management Process in Organizations
What is managerial accounting?
Directing operational activities
How Managerial Accounting Adds Value to the Organization A.
Provides information for decision making and planning B.
Assists in directing and controlling
Motivates managers and employees
Assesses an organization's competitive position
F. Balanced Scorecard
Managerial Versus Financial Accounting
Focus of reports
External vs. internal users of information
Degree of regulation
Role of the Managerial Accountant
Line and staff positions
Chief financial officer (CFO) or controller
Location within the organization
Major Themes of Managerial Accounting
Information and incentives
Costs and benefits
Evolution of Managerial Accounting
Growth of the service sector
Emergence of new industries
Focus on the customer
Product life cycles and diversity
Information and communication technology
J. Just-in-time inventory management
K. Total quality management
L. Continuous improvement
M. Cost management systems
Strategic Cost Management and the Value Chain
VIII. Business, Ethics, and the Accountant
A. Nature and causes of corporate scandals
B. Corporate and accounting reform
Managerial Accounting as a Career
Key Lecture Concepts
Types of organizations include manufacturers, retailers, service providers, agribusinesses, and nonprofit firms. These organizations have goals—for example: growth, profit, quality, leadership, etc.
Organizations have information needs in the financial, production, personnel, environmental, and legal areas. Managerial accounting provides some of this information. Managerial accounting is the process of identifying, measuring, analyzing, interpreting, and communicating information in pursuit of an organization's goals. The role of managerial accountants has expanded in recent years. Formerly in...
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