SMG AC 222 Lecture Notes - Lecture 1: Management Accounting, Financial Accounting, Decision-Making
Document Summary
Learn the terminology used to describe, categorize, and analyze the costs of doing business. The role of management accounting in the organization. Financial accounting prepares and reports accounting information to external users: stockholders, creditors, regulators. Managerial accounting provides information for decision making to internal users managers within the organization. Controlling: linking actual performance to the plan; feedback; evaluation. Decisions affect all aspects of management, not only accounting. Business process: steps to achieve a goal or task. Value chain: major business functions that add value to products or services. Internal control provides reasonable assurance that objectives are being achieved. Ethics: not just legal, but in the best interest of all parties concerned. Intrinsic motivation: you do it because you wanted to. Extrinsic motivation: you do it because there is a reward to be gained. Cognitive bias: false thought processes that everyone, to some extent has, whether they realize it or not.
