ACCT1022 Chapter Notes - Chapter 1: Value Chain, Cost Accounting, Cash Register
18 Jan 2017
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Document Summary
Chapter one: the changing role of managerial accounting in a dynamic business. Every organization has a set of goals or objectives and in order to pursue these managers need information. Managerial accounting is the process of identifying, measuring, analyzing, interpreting, and communicating information in pursuit of an organization"s goals. An organization"s management team seeks to create value for the organization by managing resources, activities, and people to achieve the organization"s goals effectively. Managerial accountants are specialists in using the tools of managerial accounting to help the organization and its managers run the operation effectively. In pursuing its goals, an organization acquires resources, hires people, and then engages in an organized set of activities. Day to day work of the management team comprises four activities: decision making, directing operational activities, planning, and controlling. How managerial accounting adds value to the organization. Objectives of managerial accounting activity: providing information for decision making and planning, assisting managers in directing and controlling operational activities.
