Notes Ch 1

Notes Ch 1 - B usi 101 Notes Ch 1 Managerial Accounting I....

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Busi 101 Notes Ch 1 Managerial Accounting I. Managerial Accounting Basics a. Managerial Accounting: A field of accounting that provides economic and financial information for managers and other internal users. b. Management Functions: i. Planning: Requires managers to look ahead and establish objectives. ii. Directing: Involves coordinating a company’s diverse activities and human resources to produce a smooth-running operation. Also involves selecting executives, managers, hiring employees. iii. Controlling: The process of keeping the company’s activities on track. Managers determine whether planned goals are being met. c. Key Objective of Management: ADD VALUE to the business under its control. Value is measured by trading price of company’s stock and potential selling price of company. d. Organizational Structure i. Most companies prepare Organization Charts to show interrelationships of activities and delegation of authority and responsibility within the company. ii. Board of Directors: Group elected by stockholders that formulates operating policies and selects officers to execute policies and perform daily functions. iii. Chief Executive Officer (CEO): Has overall responsibility for managing the business.
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iv. Line Positions: Employees that are directly involved in the company’s primary revenue-generating operating activities. Examples: VP of operations (oversees all employees with line positions), VP of marketing. v.
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This note was uploaded on 04/26/2011 for the course BUSI 101 taught by Professor Skender during the Spring '08 term at UNC.

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Notes Ch 1 - B usi 101 Notes Ch 1 Managerial Accounting I....

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