Slide 1Slide 2Introduction to Managerial AccountingObjective 1Managers’ ResponsibilitiesPlanningSlide 7Slide 8Slide 9Objective 2Managerial vs. Financial AccountingSlide 12Slide 13Slide 14Slide 15E1-9ASlide 17Slide 18Objective 3Organizational StructureChanging Roles of Management AccountantsRequired Skills of Managerial AccountantsE1-11ASlide 24Objective 4Institute of Management Accountants (IMA)Summary of IMA Ethical StandardsEthical BehaviorSteps to Resolve Ethical DilemmasUnethical vs. Illegal BehaviorE1-12ASlide 32Slide 33Objective 5Regulatory and Business IssuesSarbanes-Oxley Act of 2002 (SOX)International Financial Reporting Standards (IFRS)Extensible Business Reporting Language (XBRL)Shifting EconomyCompeting in Global MarketplaceTools for Time-Based CompetitionEnterprise Resource Planning (ERP)E-CommerceSupply-Chain ManagementLean ProductionJust in Time Inventory (JIT)TQM : Total Quality ManagementE1-15AE1-15ASlide 50Slide 51Slide 52Slide 53Slide 54Slide 55Slide 56End of Chapter 1Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall.Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall. All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without the prior written permission of the publisher. Printed in the United States of America.2Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall. Introduction to Managerial AccountingChapter 13Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall. Objective 1Identify managers’ four primary responsibilities4Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall. Managers’ ResponsibilitiesSetting goals and objectivesOverseeing day-to-day operationsEvaluating resultsof operationsDirectingControllingDecisionMakingPlanning5Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall. Planning•Setting goals and objectives and how to achieve them•Examples of planning:•Generate more sales via opening new stores•Reduce labor costs by reducing store hours•Budgets6Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall. Directing•Overseeing company’s day-to-day operations•Examples:•Using daily/weekly sales reports to adjust marketing strategies•Using product cost reports to adjust raw material usage7Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall. Controlling•Evaluating results of operations against plans and making adjustments as needed•Examples:•Comparing budgeted sales with actual sales to take corrective actions • Comparing budgeted product costs against actual product costs to take corrective actions8Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall. Decision Making•Management is continually making decisions while it plans, directs, and controls operations•Examples:•Price setting or product offerings•Renovation of facilities•Operation openings or closings9Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall. Objective 2Distinguish financial accounting from managerial accounting10Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall. Managerial vs. Financial AccountingIssue Managerial FinancialPrimary users Internal ExternalPurpose of informationPlan, direct, control, decideUsers make investing and lending decisions11Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall. Managerial vs. Financial AccountingIssue Managerial FinancialPrimary accounting productInternal reports useful to managementGeneral purpose financial StatementsWhat is included?Defined by managementDetermined by GAAP12Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall. Managerial vs. Financial AccountingIssue Managerial FinancialUnderlying basis of informationInternal and external transactions, focus on futureBased on historical transactions with external partiesEmphasisData must be relevantData must be reliable and objective13Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall. Managerial vs. Financial AccountingIssue Managerial FinancialBusiness UnitSegments of the businessCompany as a wholePreparationDepends on management needsAnnually and quarterlyVerification Internal audit External audit14Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall. Managerial vs. Financial AccountingIssue Managerial FinancialInformation requirementsNo requirementSEC requires publicly traded companies to issue audited financial statementsImpact on employee behaviorCareful considerationAdequacy of disclosure15Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall. E1-9Aa. Companies must follow GAAP in their ____________________ systems.b. Financial accounting develops reports for external parties, such as __________ and _______________.c. When managers evaluate the company’s performance compared to the plan, they are performing the ____________ role of management.financial accountingcreditorsstockholderscontrolling16Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall. E1-9Ad. __________ are decision makers inside a company.e. _____________________ provides information on a company’s past performance to external parties.f. ______________________ systems are not restricted by GAAP, but are chosen by comparing the costs versus the benefits of the system.ManagersFinancial accountingManagerial accounting17Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall. E1-9Ag. Choosing goals and the means to achieve them is the ____________ function of management.h. _______________________ systems report on various segments or business units of the company.i. ______________________ statements of public companies are audited annually by CPAs.planningManagerial accountingFinancial accounting18Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall. Objective 3Describe organizational structure and the roles and skills required of management accountants within the organization19Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall. Organizational StructureBoard of DirectorsChief Executive OfficerChief Operating OfficerChief Financial OfficerVice Presidents of various operationsTreasurer Controller Internal AuditAudit CommitteeBoard of DirectorsChief Executive