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Unformatted text preview: AC222 KEY TERMS AND NOTES CHAPTER 1 This chapter tries to put into perspective for you just what management accounting is all about, and how it differs from what you came to know as financial accounting. First, it asks what do managers do? 1. Planning: what do you want to do, and how will you do it? 2. Directing: How will you lead the workforce to carry out the plan? a. NOTE: Dean Lataif says that the goal of SMG is to produce not just managers, but leaders . What is the difference between a leader and a manager? 3. Control : Review the process: are we achieving our plan, efficiently and effectively? How do we explain deviations from the plan? Financial vs managerial accounting: Note Exhibit 1-3 in your text is as good a summary of the functions of financial versus managerial accounting as youre likely to find Do you really think the prime focus of financial accounting is on the past? Why are statements produced?Do you really think the prime focus of financial accounting is on the past?...
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This document was uploaded on 08/10/2011.
- Spring '11