CostAccountingSeventeenthEdition,GlobalEditionChapter1TheManagerandManagementAccountingCopyright?2021PearsonEducationLtd.

LearningObjectives(1of2)1.1Distinguishfinancialaccountingfrommanagementaccounting1.2Understandhowmanagementaccountantshelpfirmsmakestrategicdecisions1.3Describethesetofbusinessfunctionsinthevaluechainandidentifythedimensionsofperformancethatcustomersareexpectingofcompanies1.4Explainthefive-stepdecision-makingprocessanditsroleinmanagementaccounting

LearningObjectives(2of2)1.5Describethreeguidelinesmanagementaccountantsfollowinsupportingmanagers1.6Understandhowmanagementaccountingfitsintoanorganization’sstructure1.7Understandwhatprofessionalethicsmeantomanagementaccountants

AccountingDisciplineOverview(1of3)Managementaccountingmeasures,analyzes,andreportsfinancialandnonfinancialinformationthathelpsmanagersmakedecisionstofulfillorganizationalgoals.ManagementaccountingneednotbeGAAPcompliant.Managersusemanagementaccountinginformationto:Develop,communicate,andimplementstrategiesCoordinateproductdesign,production,andmarketingdecisionsandevaluateacompany’sperformance

AccountingDisciplineOverview(2of3)Financialaccountingfocusesonreportingfinancialinformationtoexternalpartiessuchasinvestors,governmentalagencies,banks,andsuppliers,basedonGAAP.CostAccountingmeasures,analyzes,andreportsfinancialandnonfinancialinformationrelatedtothecostsofacquiringorusingresourcesinanorganization.

AccountingDisciplineOverview(3of3)Today,mostaccountingprofessionalstaketheperspectivethatcostinformationispartoftheinformationcollectedtomakemanagementdecisions;therefore,thedistinctionbetweenthetwoisnotclear-cut,andinyourbookandthesePowerPointpresentations,weoftenusethetermsinterchangeably.

MajorDifferencesBetweenManagementandFinanc