MAHM8e Chapter01.Ab.az

7/31/2019 MAHM8e Chapter01.Ab.az

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PowerPoint Presentation by

Gail B. WrightProfessor Emeritus of AccountingBryant University

Copyright 2007 Thomson South-Western, a part of The

Thomson Corporation. Thomson, the Star Logo, and

South-Western are trademarks used herein under license.

MANAGERIAL

ACCOUNTING

8TH EDITION

BY

HANSEN & MOWEN

1 INTRODUCTION

STUDENT EDITION


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1. Discuss the need for management

accounting information.

2. Differentiate between managementaccounting & financial accounting.

3. Provide a brief historical description of

management accounting.

LEARNING OBJECTIVES

Continued


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LEARNING OBJECTIVES

4. Identify the current focus of management

accounting.

5. Describe role of management accountants in

an organization.

6. Explain importance of ethical behavior for

managers, management accountants.

7. List 3 forms of certification available to

management accountants.


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Costing services, products, other

objectives of interest to management;

Planning, controlling, evaluating, &

continuous improvement;

Decision making.

LO 1

MANAGEMENT ACCOUNTING:Objectives

Decision making


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INFORMATION NEEDS:Costing & Decision Making

EXHIBIT1-1

LO 1


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INFORMATION NEEDS:

The Management ProcessPlanning

Detailed actions to achieve a particular end

Controlling

Monitoring plan implementation & employing

corrective action when necessary

Decision making

Choosing among competing alternatives

LO 1

Controlling


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Financial accounting is for

external users and followsrestrictive rules and

regulations.

Managerial accounting is for

internal users (managers) who

plan, control, and make

decisions.

LO 2


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A COMPARISON:Management vs. Financial Accounting

EXHIBIT1-2

LO 2


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Do you know when

accounting for

managerial decisionmaking began?

LO 3


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MANAGERIAL ACCOUNTINGHISTORY

Beginnings between 1880 and 1925

Pre-1915, management accounting focused onproduct costing, that is, what products provided

best profit1925 to 1950, emphasis on inventory costing

systems

Improvements to inventory costing in 1950s and1960s

1980s recognized need for improvements inmanagement accounting

LO 3


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Do you know what the

current focus for

managerial accountingis?

LO 4


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CURRENT FOCUS

Need for innovation and relevant produces:

Activity based management

ABC Improves accuracy of assigning costs

Customer orientationStrategic positioning to maintain competitive advantage

Value chain framework to focus on customer value

Cross functional perspective

Understand importance of value chain frommanufacturing to marketing to distribution to customerservice

Continued

LO 4


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CURRENT FOCUS

Need for innovation and relevant produces (cont.)Total quality management emphasized continuous

improvement

Time becomes a competitive advantage for the firm

who an compress the value chain

Improving efficiency for profit performanceE-business for cost reduction

LO 4


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What does a value chain

look like?

How does it work?

LO 4


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EXHIB

IT

1-3

LO 4

INDUSTRIAL VALUE CHAINA value chaincombines the output

of several firms

sequentially to meet

customer needs.

O 4


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Industrial value chain is critical

for strategic cost management. It

links value-creating activities

from raw materials to disposal of

final product by end-use

customers.

LO 4

LO 5


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SARBANES-OXLEY

Enhanced the role of the management

accountant by

Tightening regulation of corporate governanceEstablishing controls over management

Raising importance of managements

assessment of internal controls

LO 5

LO 6


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MANAGEMENT ACCOUNTING:Designed for Profit Maximization

The objective of profit

maximization should beconstrained by the requirement

that profits be achieved through

legal and ethical means.1

1Hansen & Mowen, 2007, p. 17

LO 6

LO 7


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What does certification mean for

an accountant?

What certifications are available to

management accountants?

LO 7

LO 7


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CERTIFICATION

Signifies the accountant has met

requirements for

Education

Experience

Signifies the accountant has passed a

qualifying examination

LO 7

Experience


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THE END

CHAPTER 1

MAHM8e Chapter01.Ab.az

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