Chapter 1: The Manager and Management Accounting
Management Accounting
• Info provider to management
• Analytical investigations of “business engine”
• Figures do not speak for themselves, it’s the interpretation that counts
Accounting Discipline Overview
• Managerial Accounting (Controller) – measures, analyzes and reports financial and
nonfinancial information to help managers make decisions to fulfill organizational
goals. Managerial accounting need not be IFRS compliant.
• Financial Accounting (Accountant) – focus on reporting to external users including
investors, creditors, and governmental agencies. Financial statements must be IFRS
compliant.
MAC vs. FAC
Management Accounting and Value Chain
• Value Chain is the sequence of business functions in which customer
usefulness(value) is added to products or services
• The Value-Chain consists of:
1. Research & Development
2. Design
3. Production
4. Marketing
5. Distribution
6. Customer Service
Production and distribution—is referred to as the supply chain.
Management Accounting
• Info provider to management
• Analytical investigations of “business engine”
• Figures do not speak for themselves, it’s the interpretation that counts
Accounting Discipline Overview
• Managerial Accounting (Controller) – measures, analyzes and reports financial and
nonfinancial information to help managers make decisions to fulfill organizational
goals. Managerial accounting need not be IFRS compliant.
• Financial Accounting (Accountant) – focus on reporting to external users including
investors, creditors, and governmental agencies. Financial statements must be IFRS
compliant.
MAC vs. FAC
Management Accounting and Value Chain
• Value Chain is the sequence of business functions in which customer
usefulness(value) is added to products or services
• The Value-Chain consists of:
1. Research & Development
2. Design
3. Production
4. Marketing
5. Distribution
6. Customer Service
Production and distribution—is referred to as the supply chain.
