weygandts managerial accounting tools for business decision making
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Je slaagt met deze samenvatting van management accounting!
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Arteveldehogeschool (Artevelde)
Internationaal Ondernemen
Financial Management
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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 .......................................................................................................................... 3
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 ............................................................................................................. 4
2.2 costs ........................................................................................................................................................ 4
2.3 exercises .................................................................................................................................................. 1
3 Demonstrate how to compute cost of goods manufactures and prepare financial statements for a
manufacturer ................................................................................................................................................... 2
3.1 Income statement: .................................................................................................................................. 2
3.2 Statement of financial positions .............................................................................................................. 4
4 DISCUSS TRENDS IN MANAGRIAL ACCOUNTING ....................................................................................... 6
4.1 Service industries ..................................................................................................................................... 6
4.2 Focus on the value chain ......................................................................................................................... 6
4.3 Balanced scorecard ................................................................................................................................. 7
4.4 Business ethics ......................................................................................................................................... 7
4.5 Company social Responsibility ................................................................................................................ 7
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 (mng + everybody else)
- Provides tools to assist management in making decisions and to evaluate the effectiveness of those
decisions (such as: are we making profit?)
1.1.1 COMPARING MANAGERIAL AND FINANCIAL ACCOUNTING EXAMEN (A)
FINANCIAL ACCOUNTING ≠ ≠ MANAGERIAL ACCOUNTING
(vergelijken) (beslissingen nemen)
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 business.
- Highly aggregated (condensed) - Very detailed
- Limited to double-entry accounting - Extends beyond double-entry
and cost data accounting to any relevant data.
- Generally accepted accounting - Standard is relevance to decisions
principles
Verifications Audited by CPA No independent audits
process - Accounting standards (geen regels volgen)
(boekhoudregels volgen)
1.2 MANAGMENT FUNCTIES → INTERNAL FUNCTIONS
=> voor elke functie is er data nodig = management accounting data
PLANNING DIRECTING CONTROLLING
- Look ahead and establish objectives - Coming up with plans - Keeping the company’s activities on
- Maximize short-term profit and market - How are we going to reach? track (reaching the goal or not)
share - Determine whether planned goals
- Commit to environmental protection are met
and social programs - Decide changes needed to get back
- Key objective = add value to the on track
business - May use an informal or formal
system of evaluations
Example:
- “we want to increase the turnover by 5%” => planning
=> increase marketing budget by 10.000$ => directing
- “after 6 months you evaluate & you see that the turnover only increased by 1% => controlling
=> you might need to adapt your directing function (f.e. double the marketing budget)
examen (C) QUESTION:
=> wrm functies? -> om beslissingen te nemen!! anders is het nutteloos
2
, 1.3 ORGANIZATIONAL STRUCTURE
ORGANIZATION CHART:
- Show the interrelationships of activities and the delegation
of authority and responsibility within the company
≠
1.4 CONTROLLER VS TREASURER
CONTROLLER TREASURER
- Maintaining accounting records - Custody of the company’s funds
- Ensuring an adequate system of internal control - Responsible for maintaining the company’s cash
- Preparing financial statements, tax returns and position
internal reports - Insurances!!
- ALL THE REST! - MONEY! (talking to banks, insurance company, )
1 -> management accounting does more than that: help making decisions, …
4 -> planning, directing, controlling
5 -> only corporate finance or financial accounting should reply
3
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