ACC 406 Chapter Notes - Chapter 1: Total Quality Management, Continual Improvement Process, Lean Accounting
28 Jun 2018
School
Department
Course
Professor
ACC - Chapter 1 - Introduction to Managerial Accounting
Managerial Accounting - the provision of accounting information for a company's
internal users (internal accounting)
Not bound by any formal criteria (no GAAPs or IFRS)
Three broad objectives:
1. To provide information for planning the organizations actions
2. To provide information for controlling the organizations actions
3. To provide information for making effective decisions
Planning - requires setting objectives and identifying methods to achieve those
objectives
Controlling - comparing actual performance with expected performance
Decision making - process of choosing among competing alternatives
Financial accounting - concerned with producing information for external users
(investors, creditors, customers, etc.) (external accounting)
Activity-based costing (ABC) is a more detailed approach to determining the cost of
G and S. It improves costing accuracy by emphasizing the cost of many activities or
tasks that must be done to produce a product or offer a service
The objective is to find ways to perform necessary activities more efficiently and to
eliminate those that don't create customer value
Customer Orientation
Strategic positioning
oFirms choose one of two general strategies 1. Cost leadership and 2.
Superior products through differentiation
Product life cycles
oConception, introduction into the market, growth, maturity, decline
and withdrawal
The value chain
oThe set of business functions that add value to an organizations
products or services
oValue chain primary activities
Inbound logistics, operations, outbound logistics, marketing
and sales, service
oSupport activities
Procurement, technology development, HRM, developing
infrastructure
oDesign, develop, produce, market, deliver
find more resources at oneclass.com
find more resources at oneclass.com
Document Summary
Acc - chapter 1 - introduction to managerial accounting. Managerial accounting - the provision of accounting information for a company"s internal users (internal accounting) Not bound by any formal criteria (no gaaps or ifrs) Three broad objectives: to provide information for planning the organizations actions, to provide information for controlling the organizations actions, to provide information for making effective decisions. Planning - requires setting objectives and identifying methods to achieve those objectives. Controlling - comparing actual performance with expected performance. Decision making - process of choosing among competing alternatives. Financial accounting - concerned with producing information for external users (investors, creditors, customers, etc. ) (external accounting) Activity-based costing (abc) is a more detailed approach to determining the cost of. G and s. it improves costing accuracy by emphasizing the cost of many activities or tasks that must be done to produce a product or offer a service.
