managerial accounting

1、Copyright 2015 Pearson Canada Inc. 1 CHAPTER 1 Introduction to Managerial Accounting Copyright 2015 Pearson Canada Inc.2 OBJECTIVE 1 Identify managers four primary responsibilities Copyright 2015 Pearson Canada Inc. 3 Managers Responsibilities Setting goals and objectives Overseeing day-to-day opera

2、tions Evaluating results of operations Directing: Controlling: Decision Making Planning: Copyright 2015 Pearson Canada Inc. 4 Planning Setting goals and objectives for the organization and determining how to achieve them Examples of strategic goals: Generate more sales by opening new stores Reduce l

3、abour costs by improving operating efficiencies Plans may be translated into budgets Copyright 2015 Pearson Canada Inc. 5 Directing Overseeing organizations day-to-day operations Examples: Using daily/weekly sales reports to adjust marketing decisions Using product cost reports to adjust raw materia

4、l usage Setting the work schedule for employees Copyright 2015 Pearson Canada Inc. 6 Controlling Evaluating results of operations against plans and making adjustments as needed Examples: Comparing budgeted sales with actual sales and take corrective action Comparing budgeted product costs against ac

5、tual product costs and take corrective action Ensure actual results meet planned results Copyright 2015 Pearson Canada Inc. 7 Decision Making Management is continually making decisions while it plans, directs, and controls operations Examples: Location of new stores Prices of product offerings Choic

6、e of suppliers Hiring and firing employees Copyright 2015 Pearson Canada Inc. 8 OBJECTIVE 2 Distinguish financial accounting from managerial accounting Copyright 2015 Pearson Canada Inc. 9 Managerial vs. Financial Accounting IssueManagerialFinancial Primary usersInternalExternal Purpose of informati

7、on Plan, direct, control, decide Users make investing and lending decisions Primary accounting product Internal reports useful to management General purpose financial Statements What is included?Defined by management Determined by ASPE or IFRS Copyright 2015 Pearson Canada Inc. 10 Managerial vs. Fin

8、ancial Accounting IssueManagerialFinancial Underlying basis of information Internal and external transactions, focus on future Based on historical transactions with external parties EmphasisData must be relevant Data must be reliable and objective Business “unit” Segments of the business Company as

9、a whole Prepared how often? Depends on management needs Annually and quarterly Copyright 2015 Pearson Canada Inc. 11 Managerial vs. Financial Accounting IssueManagerialFinancial VerificationInternal auditExternal audit Information requirements No formal requirement only best practices Public compani

10、es must issue audited financial statements Impact on employee behaviour Careful considerationAdequacy of disclosure Copyright 2015 Pearson Canada Inc. 12 OBJECTIVE 3 Describe organizational structure and the roles and skills required of management accountants within the organization Copyright 2015 P

11、earson Canada Inc. 13 Organizational Structure Board of Directors Chief Executive Officer Chief Operating Officer Chief Financial Officer Vice Presidents of Various Operations TreasurerControllerInternal Audit Audit Committee Copyright 2015 Pearson Canada Inc. 14 The Changing Roles of Management Acc

12、ountants Impact of technology Ensuring accurate financial records Planning, analyzing, and interpreting accounting data Providing decision support Copyright 2015 Pearson Canada Inc. 15 Skills Required of Managerial Accountants Solid knowledge of financial and managerial accounting Problem-solving an

13、d decision-making skills Knowledge of how a business functions Ability to lead and to work in a team Professionalism and ethical standards Oral and written communications skills Copyright 2015 Pearson Canada Inc. 16 OBJECTIVE 4 Describe the role of the three professional accounting designations in C

14、anada and use their ethical standards to make reasonable ethical judgments Copyright 2015 Pearson Canada Inc. 17 Professional Accounting Designations in Canada Certified Management Accountant (CMA) Chartered Accountant (CA) Certified General Accountant (CGA) Chartered Professional Accountant (CPA) M

15、erger of the three legacy designations Copyright 2015 Pearson Canada Inc. 18 Credibility in Performance of Duties Professional Competence First level bullet - second level dash 8third level arrow - fourth level dash 8fifth level arrow Confidentiality and Transparency Integrity of Decisions Independe

16、nce in Actions Management Accountant must comply with five ethical standards Management Accounting Ethics Copyright 2015 Pearson Canada Inc. 19 Ethical Behaviour Means doing the right thing, regardless of consequences Examples of unethical behaviour Allowing reimbursement of false expense reports Ma

17、nipulating income Performing tasks not qualified to perform Copyright 2015 Pearson Canada Inc. 20 Steps to Resolve Ethical Dilemmas Follow companys policies for reporting unethical behaviour If not resolved Discuss with immediate supervisor Discuss with objective advisor Consult an attorney Copyrigh

18、t 2015 Pearson Canada Inc. 21 Unethical vs. Illegal Behaviour Not all unethical behaviour is illegal, but all illegal behaviour is unethical. The CMAs ethical concepts include Honesty Fairness Objectivity Responsibility Copyright 2015 Pearson Canada Inc. 22 OBJECTIVE 5 Discuss and analyze the implic

19、ations of regulatory and business trends Copyright 2015 Pearson Canada Inc. 23 Regulatory and Business Issues Sarbanes-Oxley Act of 2002 (SOX) in the USA International Financial Reporting Standards (IFRS) Extensible Business Reporting Language (XBRL) Shifting economy Copyright 2015 Pearson Canada In

20、c. 24 Sarbanes-Oxley Act of 2002 (SOX) To restore trust in publicly traded corporations, management, financial statements, and auditors CEO /CFO responsibilities: Financial statements Internal control structure Procedures for financial reporting Independent audit committee New requirements for publi

21、c accounting firms Increased white-collar crime penalties Copyright 2015 Pearson Canada Inc. 25 International Financial Reporting Standards (IFRS) As a result of globalization, consistent reporting standards are needed worldwide Canada has adopted IFRS from January 2011 Current IFRS information: www

22、.IFRS.com Copyright 2015 Pearson Canada Inc. 26 Extensible Business Reporting Language (XBRL) Standardized tagging system for financial reports Advantages: Decreases retrieval time Decreases conversion time Facilitates comparisons Customizes information Promotes more consistent use of financial tech

23、nology Copyright 2015 Pearson Canada Inc. 27 Shifting Economy North American economies have shifted away from manufacturing toward service Service companies now make up the largest sector of the Canadian economy Since the economy has shifted away from manufacturing, so has managerial accounting Copy

24、right 2015 Pearson Canada Inc. 28 How Companies Compete in Todays Global Marketplace Getting more accurate and timely information Deciding whether to expand sales/production into foreign countries Observing international competitors Lean production Cost-benefit analysis Copyright 2015 Pearson Canada

25、 Inc. 29 Sustainability, Social Responsibility, and the Triple Bottom Line Sustainability: the ability to meet the needs of the present without compromising the ability of future generations to meet their own needs Triple bottom line: Recognizes that a companys performance should also be viewed in t

26、erms of its impact on people and the planet Copyright 2015 Pearson Canada Inc. 30 Tools for Time-Based Competition Advanced Information Systems Enterprise resource planning (ERP) systems Help companies save money and respond quickly to changes, and can replace hundreds of separate software systems E

27、-commerce An important means of supply-chain management Copyright 2015 Pearson Canada Inc. 31 OBJECTIVE 6 Describe a lean production system Copyright 2015 Pearson Canada Inc. 32 Lean Production A philosophy and business strategy of manufacturing without waste Lowers costs Increases competitive posit

28、ion Incorporates a JIT inventory focus Copyright 2015 Pearson Canada Inc. 33 Characteristics of a Lean Production System Production occurs in self-contained cells Broad employee roles Small batches produced just in time Shortened set-up times Shortened manufacturing cycle times Emphasis on quality C

29、opyright 2015 Pearson Canada Inc. 34 TQM : Total Quality Management Goal is to provide customers with superior products and services Continually set higher goals for quality International Organization for Standardization (ISO) Copyright 2015 Pearson Canada Inc. 35 OBJECTIVE 7 Describe and use the co

30、sts of quality framework Copyright 2015 Pearson Canada Inc. 36 Cost of Quality Framework Identify costs as one of four categories Prevention costs Appraisal costs Internal failure costs External failure costs Copyright 2015 Pearson Canada Inc. 37 Cost of Quality Examples Prevention Costs Training em

31、ployees Other examples? Appraisal Costs Inspection of materials Other examples? Copyright 2015 Pearson Canada Inc. 38 Cost of Quality Examples Prevention Costs Training employees Evaluating suppliers Using better materials Preventive maintenance Improved equipment Redesign the product Redesign the p

32、rocess Appraisal Costs Inspection of materials Inspection of WIP Inspection of final product Employee evaluations Product testing Cost of inspection equipment Copyright 2015 Pearson Canada Inc. 39 Cost of Quality Examples Internal Failure Costs Cost of downtime Other examples? External Failure Costs

33、 Warranty costs Other examples? Copyright 2015 Pearson Canada Inc. 40 Cost of Quality Examples Internal Failure Costs Cost of downtime Rework Excessive scrap Cost of rejected units Disposal of rejects Machine breakdowns External Failure Costs Warranty costs Service cost at customer site Sales return

34、s Product liability claims Cost of recalls Lost profit from lost customers Reputation Copyright 2015 Pearson Canada Inc. 41 Quick Check Copyright 2015 Pearson Canada Inc. 42 1. In addition to accounting knowledge, management accountants must possess all of the following skills EXCEPT: a. written com

35、munication skills. b. knowledge of how a business functions. c. computer-programming skills. d. analytical skills. Copyright 2015 Pearson Canada Inc. 43 1. In addition to accounting knowledge, management accountants must possess all of the following skills EXCEPT: a. written communication skills. b.

36、 knowledge of how a business functions. c. Computer programming skills. d. analytical skills. Copyright 2015 Pearson Canada Inc. 44 2. A management accountant who refuses an expensive gift from a software salesman meets the ethical standard of: a. credibility. b. confidentiality. c. integrity. d. competence. Copyright 2015 Pearson Canada Inc. 45 2. A management accountant who refuses an expensive gift from a software salesman meets the ethical standard of: a. credibility. b. confidentiality. c. integrity. d. competence. Copyright 2015 Pearson Canada Inc. 46 3