《Manageial Accounting》Chapter 01.ppt

moonsummer@163.com 691097 Management/ Managerial Accounting Background: Environment and nature/purpose of management information Cost concept and cost classification Cost behavior, CVP analysis Accounting method and system Budgeting and profit planning Standard costing Performance measurement Chapter One OUTLINE Strategy, the Work of management and the Need for managerial accounting information Organizational structure Process management Comparison of financial and managerial accounting Learning Objective After studying Chapter 1, you should be able to: LO1 Identify the major differences and similarities between financial and managerial accounting. LO2 Understand the role of management accountants in an organization. LO3 Understand the basic concepts underlying Lean Production, the Theory of Constraints (TOC), and Six Sigma. LO4 Understand the importance of upholding ethical standards. Background Globalization The internet usage Imports into the United States Exports from the United States Internet Usage 1.1.1 Strategy Customer Value Propositions 1.1.2 Work of Management Planning Planning involves the following: Establishing objectives Selecting appropriate strategies to achieve those objectives Forces management to think ahead systematically in both the short term and the long term Long-term Strategic Planning Corporate planning Involves selecting appropriate strategies so as to prepare a long-term plan to attain objectives A detailed, lengthy process The assessment stage (the external environment, the organization, the future, expectations) → The objective stage → The evaluation stage (alternative ways of achieving objectives) → The corporate plan Short-term Tactical Planning For operational purposes Usually covering one year Relating to sections, functions, or departments The annual process should be seen as stages in the progressive fulfilment of the corporate plan as each short-term plan steers the organization towards its long-term objectiv