cost_accounting_a_managerial_emphasis_13_e_solutions_manual_horngren

Cost_accounting_a_managerial_emphasis_13_e_solutions_manual_horngren

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Unformatted text preview: 1-CHAPTER 1 THE ACCOUNTANT S ROLE IN THE ORGANIZATION See the front matter of this Solutions Manual for suggestions regarding your choices assignment material for each chapter. 1-1 1-1 Management accounting measures, analyzes and reports financial and nonfinancial information that helps managers make decisions to fulfill the goals of an organization. It focuses on internal reporting and is not restricted by generally accepted accounting principles (GAAP). Financial focuses on reporting to external parties such as investors, government agencies, and banks. 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 (not the past), and (2) management accounting influences the behavior of managers and other employees (rather than primarily reporting economic events). 1-2 Financial accounting is constrained by generally accepted accounting principles. Management accounting is not restricted to these principles. The result is that management accounting allows managers to charge interest on owners capital to help judge a divisions performance, even though such a charge is not allowed under GAAP, management accounting can include assets or liabilities (such as brand names developed internally) not recognized under GAAP, and management accounting can use asset or liability measurement rules (such as present values or resale prices) not permitted under GAAP. 1-3 Management accountants can help to formulate strategy by providing information about the sources of competitive advantagefor example, the cost, productivity, or efficiency advantage of their company relative to competitors or the premium prices a company can charge relative to the costs of adding features that make its products or services distinctive. 1-4 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 Design of of products, products, services, services, and and processes 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 Marketing promoting and selling products or services to customers or prospective customers. Distribution delivering products or services to customers. Customer Customer service service providing after-sale support to customers. 1-1-5 Supply chain describes the flow of goods, services, and information from the initial sources of materials and services to the delivery of products to consumers, regardless of whether those activities occur in the same organization or in other organizations....
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This note was uploaded on 10/06/2009 for the course BUSINESS & ACCOUNTING taught by Professor Balzar during the Spring '09 term at California State University , Monterey Bay.

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Cost_accounting_a_managerial_emphasis_13_e_solutions_manual_horngren

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