MAHM8e Chapter01.Ab .Az
MAHM8e Chapter01.Ab .Az
MAHM8e Chapter01.Ab .Az
MANAGERIAL
PowerPoint Presentation by ACCOUNTING
Gail B. Wright
Professor Emeritus of Accounting 8TH EDITION
Bryant University
BY
© Copyright 2007 Thomson South-Western, a part of The
Thomson Corporation. Thomson, the Star Logo, and
South-Western are trademarks used herein under license.
HANSEN & MOWEN
1 INTRODUCTION
1
LEARNING OBJECTIVES
Continued
2
LEARNING OBJECTIVES
4. Identify the current focus of management
accounting.
5. Describe role of management accountants in
an organization.
6. Explain importance of ethical behavior for
managers, management accountants.
7. List 3 forms of certification available to
management accountants.
3
LO 1
MANAGEMENT ACCOUNTING:
Objectives
4
LO 1
INFORMATION NEEDS:
Costing & Decision Making
EXHIBIT 1-1
5
LO 1
INFORMATION NEEDS:
The Management Process
Planning
Detailed actions to achieve a particular end
Controlling
Controlling
Monitoring plan implementation & employing
corrective action when necessary
Decision making
Choosing among competing alternatives
6
LO 2
7
LO 2
A COMPARISON:
Management vs. Financial Accounting
EXHIBIT 1-2
8
LO 3
9
LO 3
MANAGERIAL ACCOUNTING
HISTORY
Beginnings between 1880 and 1925
Pre-1915, management accounting focused on
product costing, that is, what products provided
best profit
1925 to 1950, emphasis on inventory costing
systems
Improvements to inventory costing in 1950s and
1960s
1980s recognized need for improvements in
management accounting
10
LO 4
11
LO 4
CURRENT FOCUS
Need for innovation and relevant produces:
Activity based management
ABC Improves accuracy of assigning costs
Customer orientation
Strategic positioning to maintain competitive advantage
Value chain framework to focus on customer value
Cross functional perspective
Understand importance of value chain from
manufacturing to marketing to distribution to customer
service
Continued
12
LO 4
CURRENT FOCUS
13
LO 4
14
LO 4
EXHIBIT 1-3
15
LO 4
16
LO 5
SARBANES-OXLEY
17
LO 6
MANAGEMENT ACCOUNTING:
Designed for Profit Maximization
18
LO 7
19
LO 7
CERTIFICATION
Signifies the accountant has met
requirements for
Education
Experience
Experience
Signifies the accountant has passed a
qualifying examination
20
CHAPTER 1
THE END
21