Textbook Notes (368,795)
Canada (162,165)
Accounting (533)
ACC 406 (130)
Chapter 1

Chapters 1 to 5

15 Pages
317 Views
Unlock Document

Department
Accounting
Course
ACC 406
Professor
Alison Beavis
Semester
Winter

Description
Chapter 1Introduction to Managerial AccountingManagerial Accounting the provision of accounting information for a companys internal usersNot bound by any formal criteria such as GAAP or IFRSThree objectives of managerial accountingTo provide information for planning the organizations actionsTo provide information for controlling the organizations actionsTo provide information for making effective decisionsCompanies release their information through CSR Reports Examples corporate sustainability report social responsibility report citizenship reportUses of managerial accounting informationPlanningControllingDecision makingPlanning the detailed formulation of action to achieve a particular endRequires setting objectives and identifying methods to achieve those objectivesControlling monitoring a plans implementation and taking corrective action as neededUsually achieved by comparing actual performance with expected performanceDecision Making the process of choosing among competing alternativesAn important role of managerial accounting is to supply information that facilitates decision makingFinancial Accounting primarily concerned with producing information for external users investors creditors suppliers government agencies labour unionsThis information is used for investment decisions stewardship evaluation monitoring activity regulatory measuresManagerial accounting produces information for internal users managers executives workersDifferences between managerial and financial accountingTargeted users internal vs external usersRestrictions on inputs and processes unlike financial accounting managerial accounting has no official body that prescribes the format content and rules for selecting inputs and processes and preparing financial reportsType of information in managerial accounting information can be financial or nonfinancial and may be more subjective in natureTime orientation managerial accounting strongly emphasizes providing information about future eventsDegree of aggregation managerial accounting provides and needs detailed informationBreadth managerial accounting is more broadActivity Based Costing ABC a system that accumulates overhead costs for each of the activities of an organization and then assigns the costs of activities to the products services and other costs that caused those activitiesImproves costing accuracy by emphasizing the cost of the many activities or tasks that must be done to produce a product or offer a serviceCustomer Value difference between what a customer receives and what the customer gives up when buying a product or service Firms choose one of the two general strategies to increase customer value and create a sustainable competitive advantageCost leadership to provide the same or better value to customers at a lower costSuperior products through differentiation to provide something to customers not provided by competitorsProduct Life Cycle a product progresses through a series of stages conception introduction into the market growth maturity decline withdrawal from the marketValue Chain the set of business functions that add value to an organizations products or servicesA systematic approach to examining the development of a firms competitive advantageValue chain primary activitiesInbound logistics raw materials and goods are received from the companys suppliersOperations goods are manufactured or assembledOutbound logistics sending finished goods to wholesalers retailers or the final consumerMarketing and sales developing a marketing communications and promotions mix to meet the needs of targeted customersService providing customers with installation aftersales service complaint handling etcValue chain support activitiesProcurement securing the lowest prices for inputs of the highest quality and deciding which components or operations will be provided inhouse and which will be outsourcedTechnology development innovating to reduce costs sustaining competitive advantage through lean manufacturing customer relationship management etcHuman resource management effectively managing recruitment selection training development etcDeveloping infrastructure includes strategic planning in terms of structuring the firms reporting planning control management information systems etcContinuous Improvement the continual search for ways to increase the overall efficiency and productivity of activities by reducing waste increasing quality and managing costsTotal Quality Management a management philosophy in which manufacturers strive to create an environment that will enable workers to manufacture perfect zerodefect productsLean Accounting organizes costs according to the value chain and collects both financial and nonfinancial informationOne of the recent tasks of managerial accountants is to help carry out the companys enterprise risk management ERM approachERM is a formal way for managerial accountants to identify and respond to the most important threats and business opportunities facing the organizationsStructure of the companyLine Positions positions that have direct responsibility for the basic objectives of an organizationStaff Positions positions that are supportive in nature and have only indirect responsibility for an organizations basic objectives
More Less

Related notes for ACC 406

Log In


OR

Join OneClass

Access over 10 million pages of study
documents for 1.3 million courses.

Sign up

Join to view


OR

By registering, I agree to the Terms and Privacy Policies
Already have an account?
Just a few more details

So we can recommend you notes for your school.

Reset Password

Please enter below the email address you registered with and we will send you a link to reset your password.

Add your courses

Get notes from the top students in your class.


Submit