ACCTG 231 – 1st Edition Lecture 1 Outline of Last Lecture N/AOutline of Current Lecture I. Introduction to Managerial Accountinga. Planning, Controlling, Decision-MakingII. Forms of Managementa. Strategic, Enterprise Risk, ProcessCurrent LectureManagerial Accounting:- Emphasizing the manager’s use of accounting information within the organization.- Accounting Process: construction and use of financial information for making business decisions within various organizations.- Management can be broken down into three categories:o Planning: Establishing goals Specifying how goals will be achieved Developing budgetso 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.o Decision-Making: Decision making involves making a selection among competing alternatives.- What, Who, and How?Forms of Management:1. STRATEGIC MANAGEMENT:- Strategy: A “game plan” that enables a company to attract customers by distinguishing itself from competitors.- The focal point of a company’s strategy should be the customers ~ ALWAYS!These notes represent a detailed interpretation of the professor’s lecture. GradeBuddy is best used as a supplement to your own notes, not as a substitute.- Customer Value Propositions:o Customer Intimacy Strategy: Understanding and responding to individual customer needs.o Operational Excellence Strategy: Deliver products and services faster, more conveniently, and at lower prices.o Product Leadership Strategy: Offer higher quality, and more reliable, products.2. ENTERPRISE RISK MANAGEMENT:- A process used by a company to proactively identify and manage risk.- Once a company identifies its risks, perhaps the most common risk management tactic isto reduce risks by implementing specific controls.- Examples of Business Risks:o Products harming customerso Poor weather conditions shutting down operationso Website Malfunctions- Examples of Controls Reducing Business Risks:o Develop a rigorous new product testing programo Develop contingency plans for overcoming weather-related disruptions.o Thoroughly test the website before it goes live.3. PROCESS MANAGEMENT:- Business Process: A series of steps that are followed in order to carry out some task in a