Managerial Accounting Chapter 1

Chapter 1

Learning Objectives

Managerial Accounting

After studying this chapter, you should be able to: [1] Explain the distinguishing features of managerial accounting. [2] Identify the three broad functions of management. [3] Define the three classes of manufacturing costs. [4] Distinguish between product and period costs. [5] Explain the difference between a merchandising and a manufacturing income statement. [6] Indicate how cost of goods manufactured is determined.

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Preview of Chapter 1

Managerial Accounting Basics

Managerial accounting is a field of accounting that provides economic and financial information for managers and other internal users. Managerial accounting applies to all types of businesses.

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Corporations Proprietorships

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Partnerships Not-for-profit

Managerial Accounting Sixth Edition Weygandt Kimmel Kieso

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Managerial Accounting Basics

Comparing Managerial and Financial Accounting

Managerial Accounting Basics Review Question

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Managerial accounting: a. Is governed by generally accepted accounting principles. b. Places emphasis on special-purpose information. c. Pertains to the entity as a whole and is highly aggregated. d. Is limited to cost data.

LO 1 Explain the distinguishing features of managerial accounting . LO 1 Explain the distinguishing features of managerial accounting .

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Managerial Accounting Basics

Management Functions

Planning

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Directing

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Controlling

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Maximize short-term profit and market share.

Coordinate diverse activities and human resources. Implement planned objectives. Provide incentives to motivate employees Hire and train employees. Produce smoothrunning operation.

Keeping activities on track. Determine whether goals are met. Decide changes needed to get back on track. May use an informal or formal system of evaluations.

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Commit to environmental protection and social programs.  Add value to the...