Managerial Accounting by James Jiambalvo Chapter 1: Managerial Accounting in the Information Age...
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Transcript of Managerial Accounting by James Jiambalvo Chapter 1: Managerial Accounting in the Information Age...
![Page 1: Managerial Accounting by James Jiambalvo Chapter 1: Managerial Accounting in the Information Age Slides Prepared by: Scott Peterson Northern State University.](https://reader036.fdocuments.in/reader036/viewer/2022081504/56649d4a5503460f94a26f43/html5/thumbnails/1.jpg)
Managerial Accountingby James Jiambalvo
Chapter 1:
Managerial Accounting in the Information Age
Slides Prepared by:
Scott Peterson
Northern State University
![Page 2: Managerial Accounting by James Jiambalvo Chapter 1: Managerial Accounting in the Information Age Slides Prepared by: Scott Peterson Northern State University.](https://reader036.fdocuments.in/reader036/viewer/2022081504/56649d4a5503460f94a26f43/html5/thumbnails/2.jpg)
Objectives
1. State the primary goal of managerialaccounting.
2. Describe how budgets are used in planning
3. Describe how performance reports are used in the control process.
4. Distinguish between financial andmanagerial accounting.
5. Define cost terms used in planning,control and decision making.
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Objectives (continued)
6. Explain two key ideas in managerial accounting.
7. Discuss the impact of information technology on competition, business processes, and the interaction companies have with suppliers and customers.
8. Describe a framework for ethical decision making.
9. Discuss the duties of the controller, the treasurer, the CIO and the CFO
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Goal of Managerial Accounting
1. Planning
2. Control
3. Decision Making
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Planning and Control Process
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Cost Terms
1. Variable vs. Fixed Costs
2. Sunk Costs
3. Opportunity Costs
4. Controllable vs. Noncontrollable Costs
5. Direct vs. Indirect Costs
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Two Key Ideas
1. Incremental Analysis2. You Get What You Measure!
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The Information Age and Managerial Accounting
1. The Value Chain
2. Value Chain Management
a. ERP
b. SCM
c. CRM
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Ethical Considerations
1. Ethical and Unethical Behavior
2. A Framework for Ethical Decision Making
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When Evaluating a Decision Ask:
1. What decision alternatives are available?
2. What individuals or organizations have a stake in the outcome of my decision? A Framework for Ethical Decision Making
3. Will an individual or an organization be harmed by any of the alternatives?
4. What alternative will do the most food with the least harm?
5. Would someone I respect find any of the alternatives objectionable?
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When Deciding On a Course of Action:
1. At a “gut level,” am I comfortable with the decision I am about to make?
2. Will I be comfortable telling my friends and family about this decision?
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The Controller As the Top Management Accountant
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Other Top Functions
1. Treasurer2. Chief Information Officer (CIO)3. Chief Financial Officer (CFO)
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Quick Review Question #1
1. Which of the following is most likely to be a variable cost?
a. Depreciation
b. Materials costs
c. Rent
d. Advertising
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Quick Review Answer #1
a. Depreciation
b. Materials costs
c. Rent
d. Advertising
1. Which of the following is most likely to be a variable cost?
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Quick Review Question #2
2. Which of the following is most likely to be a fixed cost?
a. Materials costs
b. Rent
c. Assembly labor cost
d. Commissions
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Quick Review Answer #2
a. Materials costs
b. Rent
c. Assembly labor cost
d. Commissions
2. Which of the following is most likely to be a fixed cost?
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Quick Review Question #3
3. Costs incurred in the past are:
a. Opportunity costs
b. Direct costs
c. Sunk costs
d. Variable costs
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Quick Review Answer #3
a. Opportunity costs
b. Opportunity costs
c. Sunk costs
d. Variable costs
3. Costs incurred in the past are:
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Quick Review Question #4
4. What does it mean to “Get What You Measure?”
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Quick Review #4 Answer
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Copyright
© 2004 John Wiley & Sons, Inc. All rights reserved. Reproduction or translation of this work beyond that permitted in Section 117 of the 1976 United States Copyright Act without the express written permission of the copyright owner is unlawful. Request for further information should be addressed to the Permissions Department, John Wiley & Sons, Inc. The purchaser may make back-up copies for his/her own use only and not for distribution or resale. The Publisher assumes no responsibility for errors, omissions, or damages, caused by the use of these programs or from the use of the information contained herein.