Ch01BUS371 - Cost Accounting Foundations and Evolutions...

Info iconThis preview shows pages 1–14. Sign up to view the full content.

View Full Document Right Arrow Icon
Chapter 1 Introduction to Cost Accounting Cost Accounting Foundations and Evolutions Kinney, Prather, Raiborn
Background image of page 1

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

View Full DocumentRight Arrow Icon
Learning Objectives (1 of 3) Describe the relationships among financial, management, and cost accounting Identify two common organizational strategies Describe the value chain and the major value chain functions
Background image of page 2
Learning Objectives (2 of 3) Explain how a balance scorecard is used to implement an organization’s strategy Explain why accountants must understand the organization’s structure in order to perform effectively
Background image of page 3

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

View Full DocumentRight Arrow Icon
Learning Objectives (3 of 3) Identify the sources of ethical standards for cost accountants List the sources of authoritative pronouncements for the practice of cost accounting
Background image of page 4
Accounting The Language of Business
Background image of page 5

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

View Full DocumentRight Arrow Icon
Accountants Provide information to external parties Stockholders, creditors, regulators Estimate the cost of products produced and services provided Provide information to internal decision makers To plan, control, and evaluate performance
Background image of page 6
Two Types of Accounting Financial Meet external information needs Comply with GAAP Management Meet internal information needs Does not have to comply with GAAP
Background image of page 7

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

View Full DocumentRight Arrow Icon
Financial Accounting Provides information to investors, creditors, and regulators Complies with GAAP
Background image of page 8
Financial Accounting Uses Return on Investment (ROI) to allocate resources Net Income/Total Assets = ROI Traditional accounting information system is based on financial accounting requirements
Background image of page 9

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

View Full DocumentRight Arrow Icon
Management Accounting Provides information for making decisions and controlling operations
Background image of page 10
Accounting Differences Financial External focus Whole organization Historical Quantitative Monetary Verifiable GAAP Formal recordkeeping
Background image of page 11

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

View Full DocumentRight Arrow Icon
Accounting Differences Financial External focus Whole organization Historical Quantitative Monetary Verifiable GAAP Formal recordkeeping Managerial Internal focus Segments or divisions Current/projected Quantitative/qualitative Monetary and nonmonetary Timely/reasonable estimate Benefits exceed costs Formal and informal recordkeeping
Background image of page 12
Relationship of Financial, Management, and Cost Accounting FINANCIAL ACCOUNTING MANAGEMENT ACCOUNTING COST ACCOUNTING Product Costs
Background image of page 13

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

View Full DocumentRight Arrow Icon
Image of page 14
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 11/13/2010 for the course BUS BUS 371 taught by Professor Wray during the Fall '07 term at Peru State.

Page1 / 49

Ch01BUS371 - Cost Accounting Foundations and Evolutions...

This preview shows document pages 1 - 14. Sign up to view the full document.

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