Scribd Logo
Upload

Welcome to Scribd!

  • 30 views

    The Accountant's Role in The Organization

    Uploaded by

    Laraib Taj
    Managerial accounting provides internal managers with financial and non-financial information to help them make decisions to achieve organizational goals. It focuses on the future and does not need to follow GAAP. Financial accounting focuses on communicating a company's financial position to external users like investors and follows GAAP. Managerial accountants are part of the planning and control functions that help companies set goals, evaluate performance, and provide feedback to improve. They use tools like budgets, cost analysis, and performance reports.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd

    The Accountant's Role in The Organization

    Uploaded by

    Laraib Taj
    30 views13 pages
    Managerial accounting provides internal managers with financial and non-financial information to help them make decisions to achieve organizational goals. It focuses on the future and does not need to follow GAAP. Financial accounting focuses on communicating a company's financial position to external users like investors and follows GAAP. Managerial accountants are part of the planning and control functions that help companies set goals, evaluate performance, and provide feedback to improve. They use tools like budgets, cost analysis, and performance reports.

    Original Description:

    Basic accounting concepts

    Original Title

    Lecture 1

    Copyright

    © © All Rights Reserved

    Available Formats

    PPTX, PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    Managerial accounting provides internal managers with financial and non-financial information to help them make decisions to achieve organizational goals. It focuses on the future and does not need to follow GAAP. Financial accounting focuses on communicating a company's financial position to external users like investors and follows GAAP. Managerial accountants are part of the planning and control functions that help companies set goals, evaluate performance, and provide feedback to improve. They use tools like budgets, cost analysis, and performance reports.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    30 views13 pages

    The Accountant's Role in The Organization

    Uploaded by

    Laraib Taj
    Managerial accounting provides internal managers with financial and non-financial information to help them make decisions to achieve organizational goals. It focuses on the future and does not need to follow GAAP. Financial accounting focuses on communicating a company's financial position to external users like investors and follows GAAP. Managerial accountants are part of the planning and control functions that help companies set goals, evaluate performance, and provide feedback to improve. They use tools like budgets, cost analysis, and performance reports.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    of 13

    CHAPTER 1

    The Accountant’s Role in the Organization

    Readings:
    Chapter 1: Cost Accounting : The Managerial Emphasis 14 th Edition By Horngren
    Chapter 1: Managerial Accounting 12th Edition By Garrison et.al
    Accounting Discipline Overview
    Managerial Accounting – measures, analyzes and
    reports financial and nonfinancial information to help
    managers make decisions to fulfill organizational
    goals. Managerial accounting need not be GAAP
    compliant.

    Financial Accounting – focus on reporting to external


    users including investors, creditors, and governmental
    agencies. Financial statements must be based on
    GAAP.
    Major Differences Between
    Financial & Managerial Accounting
    Managerial Accounting Financial Accounting

    Purpose Decision making Communicate financial


    position to outsiders

    Primary Users Internal managers External users

    Focus/Emphasis Future-oriented Past-oriented

    Rules Do not have to follow GAAP; GAAP compliant;


    cost vs. benefit CPA audited
    Behavioral Designed to influence Indirect effects on
    Issues employee behavior employee behavior
    Management Accounting and Value
    Value Chain is the sequence of business functions
    in which customer usefulness is added to products
    or services
    The Value-Chain consists of:
    1. Research & Development
    2. Design
    3. Production
    4. Marketing
    5. Distribution
    6. Customer Service
    The Value Chain Illustrated
    Key Success Factors
    The dimensions of performance that customers
    expect, and that are key to the success of a company
    include:
    Cost and efficiency
    Quality
    Time
    Innovation
    Planning & Control Systems
    Planning selects goals, predicts results, decides how to
    attain goals, and communicates this to the
    organization
    Budget – the most important planning tool
    Control takes actions that implement the planning
    decision, decides how to evaluate performance, and
    provides feedback to the organization
    A Five-Step Decision Making Process in
    Planning & Control

    1. Identify the problem and uncertainties


    2. Obtain information
    3. Make predictions about the future
    4. Make decisions by choosing between alternatives
    5. Implement the decision, evaluate performance, and
    learn
    Management Accounting Guidelines
    Cost – Benefit approach is commonly used: benefits
    generally must exceed costs as a basic decision rule
    Behavioral & Technical Considerations – people are
    involved in decisions, not just dollars and cents
    Different definitions of cost may be used for different
    applications
    A Typical Organizational Structure and the
    Management Accountant
    Accountants
     Financial accountants provide information to external
    parties
     Investors
     Creditors
     Regulators
     Donors
     Managerial accountants provide information to internal
    users
     Managers
     Cost accountants provide information to both internal
    and external users
     Product cost information
    Accounting Differences
    Financial Managerial
     External focus  Internal focus
     Whole organization  Segments or divisions
     Historical  Current/projected
     Quantitative  Quantitative/qualitative
     Monetary  Monetary and nonmonetary
     Verifiable  Timely/reasonable estimate
     GAAP  Benefits exceed costs
     Formal  Formal and informal
    recordkeeping recordkeeping
    Accounting Bodies
    Financial Management
     Public Company  Institute of Management

    Accounting Oversight Accountants (IMA)


    Board (PCAOB)  Society of Management
     Securities and Accountants of Canada
    Exchange Commission  Cost Accounting
    (SEC) Standards Board (CASB)
     Financial Accounting

    Standards Board
    (FASB)

    You might also like