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1-CHAPTERCHAPTERCHAPTER1THETHETHEACCOUNTANTACCOUNTANTACCOUNTANTSROLEROLEROLEINININTHETHETHEORGANIZATIONORGANIZATIONORGANIZATIONSeethefrontmatterofthisSolutionsManualforsuggestionsregardingyourchoicesofassignment material for each chapter.1-11-11-1Managementaccountingmeasures,analyzesandreportsfinancialandnonfinancialinformation that helps managers make decisions to fulfill the goals of an organization. It focuseson internal reporting and is not restricted by generally accepted accounting principles (GAAP).Financialaccountingfocusesonreportingtoexternalpartiessuchasinvestors,government agencies, and banks. It measures and records business transactions and providesfinancial statements that are based on generally accepted accounting principles (GAAP).Other differences include (1) management accounting emphasizes the future (not thepast), and (2) management accounting influences the behavior of managers and other employees(rather than primarily reporting economic events).1-21-21-2Financialaccountingisconstrainedbygenerallyacceptedaccountingprinciples.Management accounting is not restricted to these principles. The result is thatmanagement accounting allows managers to charge interest on owners capital to helpjudge a divisions performance, even though such a charge is not allowed under GAAP,managementaccountingcanincludeassetsorliabilities(suchasbrandnamesdeveloped internally) not recognized under GAAP, andmanagement accounting can use asset or liability measurement rules (such as presentvalues or resale prices) not permitted under GAAP.1-31-31-3Management accountants can help to formulate strategy by providing information aboutthesourcesofcompetitiveadvantageforexample,thecost,productivity,orefficiencyadvantage of their company relative to competitors or the premium prices a company can chargerelative to the costs of adding features that make its products or services distinctive.1-41-41-4The business functions in the value chain areResearchResearchResearchandandanddevelopmentdevelopmentdevelopmentgenerating and experimenting with ideas related to newproducts, services, or processes.DesignDesignDesignofofofproducts,products,products,services,services,services,andandandprocessesprocessesprocessesthe detailed planning and engineeringof products, services, or processes.ProductionProductionProductionacquiring, coordinating, and assembling resources to produce a productor deliver a service.MarketingMarketingMarketingpromoting and selling products or services to customers or prospectivecustomers.DistributionDistributionDistributiondelivering products or services to customers.CustomerCustomerCustomerserviceserviceserviceproviding after-sale support to customers.1-1-51-51-5Supply chaindescribes the flow of goods, services, and information from the initialsources of materials and services to the delivery of products to consumers, regardless of whetherthose activities occur in the same organization or in other organizations.those activities occur in the same organization or in other organizations.... View Full Document

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