MGM222H5 Lecture Notes - Lecture 1: Management Accounting, Technological Change, Finished Good
MGM222-LEC-2018-01-08
- Syllabus checklists
o Grading policies
o Participation marks
▪ 1%
o Textbook & Wiley Plus registration
▪ 9%
o Name tent
o 4 pop quizzes
▪ 15%
o Term test
▪ 1 hour and 50 mins
▪ There are past term tests
▪ Multiple choices + short answers + calculations + theories
▪ 30%
o Final
▪ 45%
▪ Focus on the chapters after the term test
▪ Specific guidelines will be provided later on
Chapter 1
- Managerial accounting
o A field of accounting that provides economic and financial information for managers and
other internal users.
o Also called Management Accounting.
- Distinguishing features
o Applies to all types of businesses
▪ Service, merchandising and manufacturing
• Mainly manufacturing companies
o Applies to all forms of business
▪ Proprietorships, partnerships and corporations
o Applies to not-for-profit and profit-oriented companies
o More responsible for strategic cost management
- Managerial vs financial accounting
o Similarities
▪ Both deal with economic events of a business
▪ Both require that economic events be quantified and communicated to
interested parties
o Differences
▪ Primary users of reports
• Financial:
o Mostly for external users
• Managerial:
find more resources at oneclass.com
find more resources at oneclass.com
Document Summary
Managerial accounting: a field of accounting that provides economic and financial information for managers and other internal users, also called management accounting. Distinguishing features: applies to all types of businesses, service, merchandising and manufacturing, mainly manufacturing companies, applies to all forms of business, proprietorships, partnerships and corporations, applies to not-for-profit and profit-oriented companies, more responsible for strategic cost management. Management functions: three broad functions, planning, forecasts, establish objectives, add value to the business, controlling, keep activities on track, see if goals are met and decide on the changes needed, directing. Implement planned objectives: coordinate diverse activities and human resources, motivating employees, hiring and training. Line positions: directly i(cid:374)volved i(cid:374) the co(cid:373)pa(cid:374)y"s (cid:373)ai(cid:374) reve(cid:374)ue-generating operating activities, vp of operations, marketing, staff positions, support the line positions, finance. Good ethics: scandals result in massive investment losses and employee layoffs, frauds, competence, compliance with laws and standards, ethical conducts, confidentiality, the company should not disclose any confidential information.
