Textbook Notes (368,795)
Canada (162,165)
BUS 254 (50)
Chapter 1

Chapter 1 Vocab and Notes

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Business Administration
BUS 254
Michelle Iorio

Managerial AccountingChapter 1 The Changing Role of Managerial Accounting All organizations have two things in commonThey all have a set of goals or objectivesIn pursuing an organizations goals managers need informationManagerial Accounting The process of identifying measuring analyzing interpreting and communicating information in pursuit of an organizations goalsIt is an integral part of the management process and management accountants are important strategic partners in an organizations management teamA Business Partnership with ManagementIn the past management accountants operated in a strictly staff capacity usually physically separated from the managers for whom they provided reports and informationToday management accountants serve as internal business consultants working sidebyside in crossfunctional teams with managers from all areas of the organization The role of the accountant in leadingedge companies has been transformed from number cruncher and financial historian to being business partner and trusted advisorAn organizations management team on which management accountants plays an integral role seeks to create value for the organization by managing resources activities and people to achieve the organizations goals effectively Managing Resources Activities and PeopleThe owners directors or trustees of an organization set its goals often with the help of management It is up to the management team to make the best use of the organizations resources activities and people in achieving the organizations goalsThe daytoday work of the management team comprises four activities decisionmaking planning directing operational activities and controllingDecision MakingMaking a decision entails choosing among the available alternativesPlanningPlanning means developing a detailed financial and operational description of anticipated operations Directing Operational ActivitiesDirecting operational activities means running the organization on a daytoday basis ControllingControlling means ensuring that the organization operates in the intended manner and achieves its goalsAdding Value to the OrganizationInformation comes from a variety of sources including economists financial experts marketing and production personnel and the organizations managerial accounting system
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