ACC 132 Lecture 1 Outline of Last Lecture I. Went over Syllabus and course outline Outline of Current Lecture I. What is Managerial Accountinga. Difference between managerial vs financial II. Why’s it important to your career?a. Business Majorsb. Accounting MajorsIII. Ethical StandardsIV. TerminologyCurrent LectureManagerial Accounting What’s managerial accounting? – is concerned with providing information to managers for use within the organization. Financial Managerial External use- owners-creditors-regulators Internal use-planning-controlling-decision making Emphasizes financial consequences ofpast activities Emphasizes decisions affecting the future Emphasizes precision  Emphasizes timelinessThese 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. Companywide reports  Emphasizes segment reports MUST follow GAAP/IFRS  Need not to follow GAAP/IFRS Mandatory external reports  Not mandatoryWhys it matter to your career?Business majors: Business majors require decision making, and planning in everyday activities in majors like; marketing, supply chain management, and human resources. They make decisionsrelated to allocating advertising dollars across various communications. From a control point they look closely at sales data to see if a budgeted price cut is generating an anticipated increase in unit sales.Accounting majors: Many accounting graduates start off working for public accounting firms that provide a variety of valuable services for their customers. Even though some will be successful in the public firm world, many will leave at some point and work for another organization. - 80% of professional accountants in the United States work in nonpublic accounting environmentsEthicsStatement of Ethical Professional Practice: it describes in detail the ethical responsibilities of management accountants. It has four broad areas:-first to maintain a high level of professional competence- second to treat sensitive matters with confidentiality - third to maintain personal integrity- fourth to disclose information in a credible fashionTerminology Performance report: compares budged data to actual data in an effort to identify and learn fromexcellent performance and to identify and eliminate sources of unsatisfactory performance.Segment: is a part or activity of an organization about which managers would like cost, revenue,or profit data.Budget: is a detailed plan for the future that is usually expressed in formal quantitative terms.Enterprise Risk Management: is process used by a company to identify those risks and develop responses to them that enable it to be reasonably assured of meeting its goals.Corporate Social Responsibility: is a concept whereby organizations consider the needs of all stakeholders when making decision.Value chain: consists of the major business functions that add value to a company’s products and services.Research and Development Product Design Manufacturings Marketing DistributionCustomer