m3l1 - Spring 2008 Module 3 Accounting Finance Lecture 1...

Info iconThis preview shows pages 1–10. Sign up to view the full content.

View Full Document Right Arrow Icon
David Robinson © D. Robinson, 2008 Spring 2008 Module 3 Lecture 1: Managerial Accounting
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Module Overview Accounting Finance Managerial Financial Auditing How investors use their money How firms raise money Three financial statements Forms of business
Background image of page 2
3 Managerial Accounting Overview of Terms Managerial Accounting: Concerns t he question of costs Cost/volume/profit relationships Achieving “Break-even” Costs relevant and not-relevant Opportunity cost
Background image of page 3

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
4 Accounting Accounting versus Bookkeeping Accounting involves analysis Bookkeeping is just recording Accounting involves keeping track of: How much we have (money, inventory) How well we are doing What is owed to us, and what we owe
Background image of page 4
5 Accounting:  The Language of Business Two different styles of accounting: Managerial Accounting for internal users Financial Accounting for external constituencies Shareholders Regulators
Background image of page 5

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
6 Managerial Accounting 1. Reports are usually more frequent ( weekly is not unusual) 1. Often contain industry-specific measures (e.g. sales/square foot; comparable store sales; revenue passenger miles) 2. Focus on costs
Background image of page 6
ACCOUNTING FOR COSTS Costs are Fixed or Variable 7
Background image of page 7

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
8 Costs are  Fixed   or  Variable 1 Fixed Cost:   A cost that doesn’t change over a period of time Doesn’t matter how much we sell, or How many we make Examples: Screen charge for printing t-shirts (one-time charge) Cost to hire a D-J for a party
Background image of page 8
9 Costs are  Fixed   or  Variable 2.  Variable Cost: A cost that changes depending on the level of production or sales Depends on how much we sell, or How many we make Examples: Cost of “raw” t-shirts, Cost of each soda at a party
Background image of page 9

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 10
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 03/22/2009 for the course UGBA 08403 taught by Professor Robinson during the Spring '09 term at Berkeley.

Page1 / 40

m3l1 - Spring 2008 Module 3 Accounting Finance Lecture 1...

This preview shows document pages 1 - 10. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online