CHAPTER1TheManagerandManagementAccountingCopyright?2015PearsonEducation

Chapter1LearningobjectivesDistinguishfinancialaccountingfrommanagementaccountingUnderstandhowmanagementaccountantshelpfirmsmakestrategicdecisionsDescribethesetofbusinessfunctionsinthevaluechainandidentifythedimensionsofperformancethatcustomersareexpectingofcompaniesCopyright?2015PearsonEducation

Chapter1Learningobjectives,concludedExplainthefive-stepdecision-makingprocessanditsroleinmanagementaccountingDescribethreeguidelinesmanagementaccountantsfollowinsupportingmanagersUnderstandhowmanagementaccountingfitsintoanorganization’sstructureUnderstandwhatprofessionalethicsmeantomanagementaccountantsCopyright?2015PearsonEducation

AccountingDisciplineOverviewManagementaccounting—measures,analyzes,andreportsfinancialandnonfinancialinformationtohelpmanagersmakedecisionstofulfillorganizationalgoals.ManagementaccountingneednotbeGAAPcompliant.Financialaccounting—focusesonreportingtoexternalusersincludinginvestors,creditors,banks,suppliers,andgovernmentalagencies.FinancialstatementsmustbebasedonGAAP.Copyright?2015PearsonEducation

AccountingDisciplineOverview,concludedCostaccounting–measures,analyzesandreportsfinancialandnonfinancialinformationrelatedtothecostsofacquiringorusingresourcesinanorganization.Today,mostaccountingprofessionalstakethepositionthatcostinformationispartofmanagementaccounting;therefore,thedistinctionbetweenthetwoisnotclear-cutandinthisbook,weoftenusethetermsinterchangeably.Copyright?2015PearsonEducation

MajordifferencesbetweenmanagementandfinancialaccountingCopyright?2015PearsonEducation

StrategyandManagementAccountingStrategyspecifieshowanorganizationmatchesitsowncapabilitieswiththeopportunitiesinthemarketplace. Therearetwobroadstrategies:cost leaders