Transcript Slide 1

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Chapter One
The Changing Role of Managerial
Accounting in a Dynamic
Business Environment
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Managing Resources, Activities,
and People
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An organization . . .
Directing
Acquires Resources
Decision
Making
Organized set
of activities
Controlling
Hires People
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Planning
How Managerial Accounting Adds
Value to the Organization
Providing information for decision making and
planning.
Assisting managers in directing and
controlling activities.
Motivating managers and other employees
towards organization’s goals.
Measuring performance of activities,
managers, and other employees.
Assessing the organization’s competitive
position.
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Managerial versus Financial
Accounting
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Accounting System
(accumulates financial and
managerial accounting data)
Managerial Accounting
Information for decision
making, and control
of an organization’s
operations.
Internal
Users
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Financial Accounting
Published financial
statements and other
financial reports.
External
Users
Managerial versus Financial
Accounting
Managerial Accounting
Users of information Managers within company
Regulation
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Financial Accounting
Interested outside parties
Required. Must comform to
Not required because for internal
GAAP which is regulated by
use only
FASB and SEC.
Basic accounting system plus
Almost exclusively from the
Source of Data
various other sources
basic accounting system
Reports often focus on subunits. Reports focus on the enterprise
Nature of Reports Based on a combination of
in its entirety. Based on
and Procedures historical data, estimates, and
historical transactions.
projections of future events.
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Line and Staff Positions
A line position is
directly involved in
achieving the basic
objectives of an
organization.

Example: A production
supervisor in a
manufacturing plant.
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A staff position
supports and assists
line positions.

Example: A cost
accountant in the
manufacturing plant.
Evolution and Adaptation in
Managerial Accounting
Service Vs. Manufacturing
Firms
Emergence of New
Industries
Global Competition
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Computer-Integrated
Manufacturing
Change
Information and
Communication
Technology
Product Life Cycles
Cross-Functional Teams
Total Quality
Management
Time-Based Competition
Continuous Improvement
Just-in-Time Inventory
Focus on the Customer
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Strategic Cost Management and
the Value Chain
Product
Design
Production
Research
and
Development
Securing raw
materials and
other resources
Start
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Marketing
Distribution
Customer
Service
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Professional Ethics
Competence
Confidentiality
Integrity
Objectivity
Resolution of Ethical Conflict
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End of Chapter 1
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