MANAGERIAL ACCTG BOOK NOTES - MANAGERIAL ACCTG BOOK NOTES...

MANAGERIAL ACCTG BOOK NOTES
CH 1
Managerial acctg- info to managers for se within the organization
Financial acctg emphasizes importance of past activities/performance, managerial
concerned w decisions affecting future, timeliness, segment performance
Segment- part or activity of an organization about which managers would like cose,
revenue, or profit data ie product lines, customer groups, territories, departments
Financial—GAAP, managerial- does not comply w externally imposed rules
3 vital activities- 1) PLANNING- establishing goals and how to achieve
2) CONTROLLING- gathering feedback to ensure the plan is properly executed 3)
DECISION MAKING- selecting course of action from competing alternatives
1)Budget- detailed plan for future expressed in quantitative terms
2) performance report - compares budgeted data to actual data in effort to identify and
learn from excellent performance and identify and eliminate sources of unsatisfactory
performance
Strategy- game plan that enables company to attract customers and distinguish itself
from competitors
Customer value propositions--- customer intimacy (Nordstrom), operational excellence
(google), product leadership (BMW, apple)
Enterprise risk management- process that identifies risks in business strategy and
develops responses to them
Business process- series of steps that are followed in order to carry out some task in a
business
Value chain-