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Unformatted text preview: Chapter 1 Learning objective 1 : Define managerial accounting and describe its role in the management process Answer: Managerial accounting is the process of identifying, measuring, analyzing, interpreting, and communicating information in pursuit of an organization’s goals. It is an integral part of the management process, and management accountants are important strategic partners in an organization’s management team. Learning objective 2 : Explain four fundamental management processes that help organizations attain their goals. Answer: Decision making Directing operational activities Planning Controlling Learning objective 3 : List and describe five objectives of managerial accounting activity. Answer: 1. Providing information for decision making and planning, and proactively participating as part of the management team in the decision-making and planning processes. 2. Assisting managers in directing and controlling operational activities. 3. Motivating managers and other employees toward the organization’s goals 4. Measuring and evaluating the performance of activities, subunits, managers, and other employees within the organization 5. Assessing the organization’s competitive position, and working with other managers to ensure the organization’s long-run competitiveness in its industry. Learning Objective 4 : Explain the major differences between managerial and financial accounting. Managerial accounting Financial Accounting Users of information Managers, within the organization Interested parties, outside the organization regulation not required and unregulated , since it is intended only for management Required and must conform...
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