UGBA M3L3 - UGBA M3L3 Managerial Accounting Overview of...

Info iconThis preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon
UGBA M3L3 Managerial Accounting Overview of Terms Managerial Accounting: Concerns the question of costs Cost/volume/profit relationships Achieving “Break-even”- how much to break even Costs relevant and not-relevant Opportunity cost The Importance of Accounting Good records reassure everyone that no one is “scamming” the business Proper accounting is important when you have distant investors and remote firms Accounting Accounting versus Bookkeeping Accounting involves analysis Bookkeeping is just recording Accounting involves keeping track of: How much we have (money, inventory) How well we are doing What is owed to us, and what we owe Account: Language of Business Two different styles of accounting: Managerial Accounting for internal users Financial Accounting for external constituencies Shareholders Regulators Managerial Accounting Reports are usually more frequent than those required for Financial Accounting ( weekly is not unusual)- by law every quarter 2. Often contain industry-specific measures – figure every Tuesday; what total profit (e.g. $ per transaction, total by store ) 3. Managerial Accounting is about measuring costs Fixed Cost A cost that doesn’t change over a period of time Doesn’t matter how much we sell, or how many we make Examples:
Background image of page 1

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

View Full DocumentRight Arrow Icon
Screen charge for printing t-shirts (one-time charge) Cost to hire a D-J for a party Variable Cost A cost that changes depending on the level of production or sales Depends on how much we sell, or how many we make
Background image of page 2
Image of page 3
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 10/03/2011 for the course UGBA 10 taught by Professor Xuanmingsu during the Fall '08 term at University of California, Berkeley.

Page1 / 5

UGBA M3L3 - UGBA M3L3 Managerial Accounting Overview of...

This preview shows document pages 1 - 3. Sign up to view the full document.

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