Unlock document.
This document is partially blurred.
Unlock all pages and 1 million more documents.
Get Access
1-1
Management Accounting Overview
Topic 1
Discuss the need for
management accounting
information.
Learning Objective 1
1
Management accounting is providing
accounting information for a
company’s internal users.
Is not bound by generally accepted
accounting principles (GAAP).
The Need for Management Accounting
Information
2
Management accounting has three
broad objectives:
1. To provide information for planning
the organization’s actions.
22.To provide information for
controlling the organization’s
actions.
33. To provide information for effective
decision making.
The Need for Management Accounting
Information
3
Management Activities
Planning
Decision
Making
Controlling
4
Planning
Establish Goals.
Specify How Goals
Will Be Achieved.
Develop Budgets.
5
1-2
Controlling
The control function gathers
feedback to ensure that plans
are being followed.
Feedback in the form of performance reports
that compare actual results with the budget
are an essential part of the control function.
6
Controlling is the managerial activity of monitoring
a plan’s implementation and taking corrective
action as needed.
Decision Making
Decision making is the
process of choosing among
competing alternatives.
What should
we be selling?
we be serving?
Who should
we be serving?
How should
we execute?
7
Planning and Control Cycle
Formulating long-
and short-term plans
(Planning)
Implementing
Comparing actual
Begin
Differentiate between
management accounting and
Learning Objective 2
