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Summary financial management (2 documenten; corporate finance & manageral accounting)
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Financial management consists of two parts. Two files: —> Corporate finance (English) —> Manageral accounting (English)
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Financial management,C1: Managerial accounting
1 identify the features of managerial accounting and the functions of management .................................. 2
1.1 Managerial accounting ........................................................................................................................... 2
1.2 managmeent functies ............................................................................................................................. 2
1.3 Organizational structure ......................................................................................................................... 2
1.4 Controller vs treasurer ............................................................................................................................. 3
2 describe the classes of manufacturing costs and the differnces between product and period costs. ........ 3
2.1 Main principle of doing business ............................................................................................................. 3
2.2 Costs ........................................................................................................................................................ 3
2.3 Exercises .................................................................................................................................................. 5
3 Demonstrate how to compute cost of goods manufactures and prepare financial statements for a
manufacturer ................................................................................................................................................... 6
3.1 Income statement: .................................................................................................................................. 6
3.2 Statement of financial positions .............................................................................................................. 7
4 dISCUSS TRENDS IN MANAGRIAL ACCOUNTING ....................................................................................... 7
4.1 Service industries ..................................................................................................................................... 7
4.2 Focus on the value chain ......................................................................................................................... 7
4.3 Balanced scorecard ................................................................................................................................. 8
4.4 Business ethics ......................................................................................................................................... 8
4.5 Company social Responsibility ................................................................................................................ 8
4.6 Exercises .................................................................................................................................................. 8
1
, 1 IDENTIFY THE FEATURES OF MANAGERIAL ACCOUNTING AND THE FUNCTIONS OF
MANAGEMENT
1.1 Managerial accounting
- Provides economic and financial information for managers and other internal users
- Provides tools to assist management in making decisions and to evaluate the effectiveness of those
decisions.
1.1.1 Comparing managerial and financial accounting
FINANCIAL ACCOUNTING MANAGERIAL ACCOUNTING
Primary users of External users: Internal users:
reports - Stockholders - officers
- Creditors - managers
- regulators
Types and Financial statements Internal reports
frequency of - quarterly and annually - as frequently as needed
reports
Purpose of reports General-purpose Special-purpose for specific decisions
Content of reports - pertains to business as a whole. - Pertains to subunits of the
- Highly aggregated (condensed) business.
- Limited to double-entry - Very detailed
accounting and cost data - Extends beyond double-entry
- Generally accepted accounting accounting to any relevant data.
principles - Standard is relevance to decisions
Verifications Audited by CPA No independent audits
process
1.2 managmeent functies
PLANNING DIRECTING CONTROLLING
- Look ahead and establish objectives - Look ahead and establish - Keeping the company’s activities
- Maximize short-term profit and objectives on track
market share - Maximize short-term profit and - Determine whether planned
- Commit to environmental market share goals are met
protection and social programs - Commit to environmental - Decide changes needed to get
- Key objective = add value to the protection and social programs back on track
business - Key objective = add value to the - May use an informal or formal
business system of evaluations
1.3 Organizational structure
Organization chart:
- Show the interrelationships of activities and the delegation of
authority and responsibility within the company
2
, 1.4 Controller vs treasurer
CONTROLLER TREASURER
- Maintaining accounting records - Custody of the company’s funds
- Ensuring an adequate system of internal - Responsible for maintaining the company’s
control cash position
- Preparing financial statements, tax returns - Insurances
and internal reports - MONEY
-
2 DESCRIBE THE CLASSES OF MANUFACTURING COSTS AND THE DIFFERNCES BETWEEN
PRODUCT AND PERIOD COSTS.
2.1 Main principle of doing business
Limited resources Maximum profit
- Resources are anything you use within your company, such as… Raw material, personnel, fixed assets,
time, ….
- Which decisions do we need to make?
- If we USE resources, we get COSTS
- The cost = the translation of the usage of a resource
2.2 Costs
PRODUCT costs Direct materials
(manufacturing
costs)
Direct labor
COSTS
PERIOD costs (non
Manufacturing
manufacturing
overhead
costs)
3
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