Managerial ACCT 2332 Ch. 1
ACCT 2332
Managerial Accounting
Instructor
Dr. Michael Yampuler
E-mail: myampuler@uh.edu
Office: 380K MH
Managerial accounting helps managers make decisions
A company manufactures a cell phone. It uses machines, engineers, utilities, supervisors etc. How much is the cost of one phone? How much should we sell it for?
A footwear company manufactures dress shoes, casual shoes, and sandals in the same factory. Sandals do not seem to sell well enough. Is it beneficial to discontinue the sandals line?
How many employees does a company needs if it plans to sell
30,000 cars this year (assume it always wants some cars in the inventory). What should a soft drinks company do if it spent this year $1.2 million on raw materials instead of the $1 million it planned to spend? Syllabus
See on Blackboard
Chapter 1:
Introduction to
Managerial
Accounting
5
Managers’ Responsibilities
Planning
Decision
Making
Setting goals and objectives Directing
Overseeing day-to-day operations Controlling
Evaluating results of operations
6
Planning
• Setting goals and objectives and how to achieve them
• Examples of planning:
• Generate more sales via opening new stores • Reduce labor costs by reducing store hours • Budgets are important tools for planning.
7
Directing
Directing
•Overseeing company’s day-to-day operations
•Examples:
• Managing personnel
• Working with suppliers
• Using daily/weekly sales reports to adjust marketing strategies
• Using product cost reports to adjust raw material usage
8
Controlling
Controlling
•Evaluating results of operations against plans and making adjustments as needed
•Examples:
• Comparing budgeted sales with actual sales to take corrective actions
• Comparing budgeted product costs against actual product costs to take corrective actions 9
Decision making
Decision Making
•Management is continually making decisions while it plans,
Managerial Accounting
Instructor
Dr. Michael Yampuler
E-mail: myampuler@uh.edu
Office: 380K MH
Managerial accounting helps managers make decisions
A company manufactures a cell phone. It uses machines, engineers, utilities, supervisors etc. How much is the cost of one phone? How much should we sell it for?
A footwear company manufactures dress shoes, casual shoes, and sandals in the same factory. Sandals do not seem to sell well enough. Is it beneficial to discontinue the sandals line?
How many employees does a company needs if it plans to sell
30,000 cars this year (assume it always wants some cars in the inventory). What should a soft drinks company do if it spent this year $1.2 million on raw materials instead of the $1 million it planned to spend? Syllabus
See on Blackboard
Chapter 1:
Introduction to
Managerial
Accounting
5
Managers’ Responsibilities
Planning
Decision
Making
Setting goals and objectives Directing
Overseeing day-to-day operations Controlling
Evaluating results of operations
6
Planning
• Setting goals and objectives and how to achieve them
• Examples of planning:
• Generate more sales via opening new stores • Reduce labor costs by reducing store hours • Budgets are important tools for planning.
7
Directing
Directing
•Overseeing company’s day-to-day operations
•Examples:
• Managing personnel
• Working with suppliers
• Using daily/weekly sales reports to adjust marketing strategies
• Using product cost reports to adjust raw material usage
8
Controlling
Controlling
•Evaluating results of operations against plans and making adjustments as needed
•Examples:
• Comparing budgeted sales with actual sales to take corrective actions
• Comparing budgeted product costs against actual product costs to take corrective actions 9
Decision making
Decision Making
•Management is continually making decisions while it plans,