Managerial Accounting Test 1 Review

Managerial - Managerial Accounting Test 1 Review Chapters 1-2 Cost Management o Philosophy to create more customer value at a lower cost o Attitude

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Managerial Accounting Test 1 Review Chapters 1-2 Cost Management o Philosophy- to create more customer value at a lower cost. o Attitude- proactive, costs don’t just happen. Aid management in decisions to develop and improve products and efficiency. o Set of techniques- use performance measures to assess the impacts of decisions. Cost Management- the set of techniques that function together to support the organizations goals and techniques. Unethical behavior can lead to wasted resources, lost time, ruined reputations, and maybe even legal penalties. Pressure for individuals to misstate information regarding strategic decisions: o Bias from personal commitment to a decision ( manager doesn’t want to admit it) o Fear of loss of prestige, position, or compensation from failed strategy (up and out strategy that rewards managers who continually do well) o Greed and intentional behavior to defraud an organization or its stakeholders. Internal Controls o Provide management reasonable assurance that their assets are protected and that company accounting is reliable. o Designed to ensure that the organization will achieve its goals is Effectiveness and efficiency of operations Reliability of Financial Reporting Compliance with applicable laws and regulations o Separation of duties (no one person has control over an entire transaction) o Legally required by SOX CEO and CFO claim responsibility for system of Internal Controls External auditor must attest to management’s assessment
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Internal Auditing (consultants and watchdog’s) by reviewing internal controls and ensuring that controls are working, internal auditors are often a company’s first line of defense against fraud. o
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This note was uploaded on 08/08/2011 for the course ACCT 3613 taught by Professor Cooper during the Spring '11 term at Arkansas.

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Managerial - Managerial Accounting Test 1 Review Chapters 1-2 Cost Management o Philosophy to create more customer value at a lower cost o Attitude

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