CHAPTER%201 - CHAPTER 1 THE ACCOUNTANT'S ROLE IN THE...

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CHAPTER 1 THE ACCOUNTANT’S ROLE IN THE ORGANIZATION 1-1 Management accounting measures and reports financial and nonfinancial information that helps managers make decisions to fulfill the goals of an organization. It focuses on internal reporting. Financial accounting focuses on reporting to external parties. It measures and records business transactions and provides financial statements that are based on generally accepted accounting principles (GAAP). Other differences include (1) management accounting emphasizes the future, (2) management accounting influences the behavior of managers and other employees, and (3) management accounting is not restricted by Generally Accepted Accounting Principles. 1-4 The business functions in the value chain are Research and development —generating and experimenting with ideas related to new products, services, or processes. Design of products, services, and processes —the detailed planning and engineering of products, services, or processes. Production —acquiring, coordinating, and assembling resources to produce a product or deliver a service. Marketing —promoting and selling products or services to customers or prospective customers. Distribution —delivering products or services to customers. Customer service —providing after-sale support to customers. 1-8 Planning decisions focus on (a) selecting organization goals, predicting results under various alternative ways of achieving those goals, deciding how to attain the desired goals, and (b) communicating the goals and how to attain them to the entire organization. Control decisions
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CHAPTER%201 - CHAPTER 1 THE ACCOUNTANT'S ROLE IN THE...

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