Chapters+1+_+2+Lecture+Notes - 1 Chapters 1 2 Introduction...

1
Chapters 1 & 2
Introduction to Management Accounting
Cost Terms, Concepts and Classifications
A. Managerial Accounting
■ for
# designed to help managers
# tailored to
#
not governed by however, the information used
for insiders overlaps with information for external
users. Therefore, you will see the influence of
# management has to look at the whole picture to make
good business decisions.
# ever changing environment with new operating methods
and challenges to face.

B. Management Accounting VS. Financial Accounting
Mgmt. Accounting Financial Accounting
Primary
Users
Time Focus
Reports
Types of
accounting
systems
Units of
Measure
Focal point
for analysis
Degree of
objectivity

C. What are the three main functions of management?
1. Planning -
2. Organizing, directing and motivating -
3. Controlling -
D. What are the primary concerns of management?
1.
Increasing the
2. Increasing
3. Achieving
4. Reducing
5. Global
To help management with these concerns, managerial accountants use
both financial and nonfinancial information to provide the reports
management needs to make decisions. The information is provided by
the management accounting information system the company uses.
E. Methods Used to Continuously Improve
1. Just-In-Time Operating Environment
Production systems designed to eliminate waste by such means as
sequentially arranged production activities, low setup times,
demand-pull production scheduling, and a high level of employee
training and commitment.