Chapter Ch t 1
The Changing Role g of Managerial Accounting in a y Dynamic Business Environment

McGraw-Hill/Irwin

Copyright © 2009 by The McGraw-Hill Companies, Inc. All rights reserved.

Learning Objective 1

McGraw-Hill/Irwin

Copyright © 2009 by The McGraw-Hill Companies, Inc. All rights reserved.

Define Managerial Accounting g g

Managerial accounting is the process of Identifying Measuring Analyzing Interpreting Communicating information

1-3

Learning Objective 2

McGraw-Hill/Irwin

Copyright © 2009 by The McGraw-Hill Companies, Inc. All rights reserved.

Managing Resources, Activities, and P d People l
An organization . . .
Directing

Acquires Resources

Organized set of activities

Decision Making

Controlling g

Planning

Hires People
1-5

Learning Objective 3

McGraw-Hill/Irwin

Copyright © 2009 by The McGraw-Hill Companies, Inc. All rights reserved.

How Managerial Accounting Adds Value to the Organization Add V l t th O i ti
• Providing information for decision making and planning. • Assisting managers in directing and controlling g g g g activities. g g p y • Motivating managers and other employees towards organization’s goals. • Measuring performance of activities, managers, and other employees. • Assessing the organization’s competitive position.
1-7

Learning Objective 4

McGraw-Hill/Irwin

Copyright © 2009 by The McGraw-Hill Companies, Inc. All rights reserved.

Managerial versus Financial Accounting A ti
Financial Accounting IInterested parties, outside th organization. t t d ti t id the i ti Required and must conform to generally accepted accounting principles. Regulated by the Financial Accounting Standards Board,, and,, to a lesser g degree, the Securities and Exchange Commission. Source of Data The organization's basic accounting system, plus Almost exclusively drawn from the