Topic 1 Chapter 1 - Introduction to Managerial Accountants

Topic 1: chpt 1 an increasing number of organizations are segregating managerial accountants in separate managenal-accounting department why is it false? managerial accountants cannot be separated into different departments as they belong into one & they oversee the entire operation in the organisation day-to-day work comprises decision making, planning, directing operational activities & controlling decision making entailed choosing among the available alternatives planning developing a detailed financial operational description of anticipated operations directing operational activities running the organization on a day-to-day basis Controlling ensuring the organization operates in the mtended manner & achieves its goals   Objectives of managerial accounting providing information for decision making & planning assisting managers in directing & controlling operations motivating managers toward the organization's goala measuring the performance of managers & subunits assessing organizations competitive position & working & other managers to ensure organizations long-run competitiveness in its industry. role of managerial accounting information in assisting management is a(n): attention-directing role managerial accounting information often assists management through its attention-directing function employee empowerment involves encouraging of authorizing workers to take initiative to * Improve operations * reduce costs * Improve product quality * Improve customer service Internal users managers at all level in the organizations External users stockholders, consumer groups, lenders, government agencies financial accounting focuses primarily on reporting to parties outside of an organization who reports to parties within an organization ans: managerial accountants characteristics that relates more to managerial accounting than to financial accounting a focus on reporting to personnel within on organization & a focus on providing information that a relevant for planning, decision making directing control (more suitable to choose) Similarity between financial & managerial accounting both draw upon data from an organization's accounting system Eg of line position manager of food & beverage services at Disney's magic kingdom directly involved managerial accountants often work on cress-functional trama & are locared throughout an organization. buying produce 2 mapping the floor } refilling the napkin dispenser part of a value chain for fast food restaurant 4 hiring new cooks cost management systems tend to focus on an organization's activities (sometimes called activity accounting.) Theorectical capacity upper limit on production of goods or services if everything works perfecty Practical capacity allows for normal occurences such as equipment downtimes & morter's fatigue cost of unused capacity cort of resources supplied but unused Value chain of a manufacturer manufacturing, rid, product design & marioting جا process by which a company adds vawe is on arkele To achieve sustainable advantage, it must perform: strategic cost management 95 ane or mors pohivefiet in the value chain at the same quality loved as it compolitors, but at a lower cont its value chain activites at a higher quality level than its competitors, but at na greater cast process off managing thats coat relationship to the fient's advantage Efficiency is not an ethical standard of managerial accounting competence, confidentiality, integrity, credibility elements of competency elements of confidentiality elements of Integrity elements of credibility decisions that is concerned by management tccounting product cashing, continuous operational Improvement & financial control How management accounting & financial azcunding differs! ans: management accounting information is prepared using whatever methods the company finds beneficial A person in a atefit pontion provides support for the line function.