CACC406 CH01

CACC406 CH01 - CACC406 CH01 INTRO TO MANAGERIAL ACCOUNTING...

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CACC406 CH01 INTRO TO MANAGERIAL ACCOUNTING Information = data that have been used to generate records of fact that can be used in a future decision MANAGEMENT ACCOUNTING INFORMATION SYSTEM Provides information to numerous user groups for a variety of purposes – External and Internal users o Ex: External user – financial statements for investors and creditors o Ex: Internal users – provides technical and operating decisions – quality control and scheduling Provides information for: o Product costing o Pricing o Evaluation of segment profitability MANAGERIAL ACCOUNTING Assist managers in acquiring financial information and making decisions User-driven, not data driven Deals with information system and accounting information systems are the data used (means) to reach better decisions (ends) Focuses on the needs of users within an organization (internal users) Does not exist to generate data, but exists for planning and control processes ORGANIZED INTO 3 FRAME WORKS 1. STRATEGIC PLANNING Effectiveness in meeting organizational objectives 2. MANAGEMENT CONTROL ensure that the resources are used effectively and efficiently by the managers of the organization 3. OPERATIONAL CONTROL ensure that specific tasks are carried out effectively and efficiently AT EACH LEVEL, THERE ARE 3 TYPES OF DECISIONS Structured Decisions – those that are routine and normal, information requirements and decision processes relatively well understood Unstructured Decisions – unique and uncommon and thus information and decision processes need to be developed for that decision Semi Structured MAKING GOOD DECISIONS REQUIRES A PROCESS THAT IS LOGICAL steps below) A MANAGEMENT DECISION PROCESS (STEPS) 1. IDENTIFY THE PROBLEM/ISSUE a.i. What information is required to develop a solution to the problem
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CACC406 CH01 - CACC406 CH01 INTRO TO MANAGERIAL ACCOUNTING...

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