3 primary responsibilities of mngt Planning controlling directing Managers plan by setting goals objectives for the co devising strategies for achieving these goals Then they direct the day to day operations of the co in light of the goals objectives They control they company by comparing actual results to plans then using that feedback to adjust plans operations Throughout all aspects of these duties mgmt is making critical business decisions mgmt uses info on product costs to determine sales prices Responsibility directing To lower product costs management moves production to Mexico responsibility controlling Management conducts variance analysis by comparing budget to actual Responsibility controlling Mgmt reviews hourly sales reports to determine the level of staffing needed to service customers Responsibility directing Management decides to increase sales growth by 10 next year Responsibility planning Planning mgmt creates a sales budget for the upcoming quarter top management selects a location for a new store management is designing a new sales incentive program for the upcoming year Directing the store mgr posts the employee time schedule for the next week so that employees know when there working Controlling the manager of the Service Dpt investigates why the actual hrs spent on a recent repair job exceeded the standard for that type of repair by more than 20 Internal decision makers use managerial accting Managerial Acct emphasizes reliability Managerial Acct focused on the future main characteristic of data is that it must be relevant reports tend to be prepared for the parts of the org rather than the whole org primary users are internal for ex company managers reports are prepared as needed not governed by legal reqts Financial Acct reporting is based mainly on the company as a whole reports are prepared usually qtrly annually info is verified by external auditors focused on the past governed by GAAP primary users are external creditors investors US companies must follow GAAP or IFRS in their financial acct systems Financial acct develops reports for external parties such as creditors and shareholders When mngrs evaluate the company s performance compared to the plan they are performing the controlling role of mgmt Managers are decision makers inside a company Financial acct provides info on a company s past performance to external parties Managerial acct systems are not restricted by GAAP or IFRS but are chosen by comparing the costs versus the benefits of the system Choosing goals and the means to achieve them in the planning function of management Managerial acct systems report on various segments or business units of the co Financial acct statements of public companies are audited annually by CPAs Summary of IMA Ethical Standards Recap Competence this relates to having the expertise knowledge skills Qualifications to perform your job duties maintaining your skills and education seminars etc preforming your job duties in accordance with laws regulations and technical standards providing decision support that is accurate clear and concise and timely Integrity this area relates to abstaining from engaging in or supporting any activity that would discredit the profession reporting conflicts of interest examples that violate this standards cheating on an expense report discussed in class stealing supplies from your company accepting gifts or factors that could be perceived to influence your actions Credibility this area relates to communicating information fairly and objectively basically is your work product reports information credible The user would primarily use financial current stockholders financial wall street analysts financial news reporters both company controller both board of directors financial sec employee financial external auditor public accounting firm both internal auditor financial potential shareholders financial loan officer at the company s bank managerial manager of the sales dept financial bookkeeping dept managerial managers at regional offices financial IRS agent Treasurer is in charge of raising the firm s capital issuing company bonds and stock invest company funds Controller calc the cost of a product work with various depts In preparing operating budgets for the upcoming yr oversee accts payable activities prepares company tax returns preparing journal entries for month end closing creating an analysis about whether to leas or buy a delivery truck internal Auditing Dept check to make sure that company risk management procedures are being followed report to the audit committee of the board of directors and to a senior executive such as the CFO or CEO performing cash counts at branch offices ensuring that the company s internal controls are functioning properly 1 The CFO and the COO report to the CEO 2 The internal audit function report to the CFO or the audit committee and the CEO 3 The controller is directly responsible for financial acct managerial acct and tax reporting 4 The CEO is hired by the board of directors 5 The treasurer is directly responsible for raising capital and investing funds 6 The COO is directly responsible for the company s operations 7 Management accountants often work with cross functional teams 8 A subcommittee of the board of directors is called the audit committee 9 An mnmt accountant who refuses an expensive gift from a software salesperson meets the ethical standard on integrity 1 Managerial Accounting systems are chosen by comparing the costs versus the benefit of the system and are not restricted by GAAP or IFRS 2 CPAs audit the financial act statement of public 4 Decision makers inside a company are the managers 5 Choosing goals and the means to achieve them is the Planning function of management Managerial acct systems report on various segments or business units of the company Lean Thinking is both a philosophy and a business strategy of operating without waste Typically the treasurer and controller report directly to the CFO Throughput time is the time between buying raw materials and selling the finished products Controlling is the management process of evaluating the results of business operations against he plan and making adjustments to keep the company pressing towards its goals Sustainability is the ability to meet the needs of the present without compromising the ability of future generations to meet their own needs The SEC is expected to require the adoption of IFRS for all publicly traded