Presentation on theme: "Managerial Accounting by James Jiambalvo"— Presentation transcript:
1 Managerial Accounting by James Jiambalvo Chapter 1:Managerial Accounting in the Information AgeSlides Prepared by:Scott PetersonNorthern State University
2 Objectives 1. State the primary goal of managerial accounting. 2. Describe how budgets are used in planning3. Describe how performance reports are used in the control process.4. Distinguish between financial and managerial accounting.5. Define cost terms used in planning, control and decision making.
3 Objectives (continued) 6. Explain two key ideas in managerial accounting.7. Discuss the impact of information technology on competition, business processes, and the interaction companies have with suppliers and customers.8. Describe a framework for ethical decision making.9. Discuss the duties of the controller, the treasurer, the CIO and the CFO
4 Goal of Managerial Accounting PlanningControlDecision Making
6 Cost Terms Variable vs. Fixed Costs Sunk Costs Opportunity Costs Controllable vs. Noncontrollable CostsDirect vs. Indirect Costs
7 Two Key IdeasIncremental AnalysisYou Get What You Measure!
8 The Information Age and Managerial Accounting The Value ChainValue Chain ManagementERPSCMCRM
9 Ethical Considerations Ethical and Unethical BehaviorA Framework for Ethical Decision Making
10 When Evaluating a Decision Ask: What decision alternatives are available?What individuals or organizations have a stake in the outcome of my decision? A Framework for Ethical Decision MakingWill an individual or an organization be harmed by any of the alternatives?What alternative will do the most food with the least harm?Would someone I respect find any of the alternatives objectionable?
11 When Deciding On a Course of Action: At a “gut level,” am I comfortable with the decision I am about to make?Will I be comfortable telling my friends and family about this decision?
12 The Controller As the Top Management Accountant
13 Other Top Functions Treasurer Chief Information Officer (CIO) Chief Financial Officer (CFO)
14 Quick Review Question #1 Which of the following is most likely to be a variable cost?DepreciationMaterials costsRentAdvertising
15 Quick Review Answer #1Which of the following is most likely to be a variable cost?DepreciationMaterials costsRentAdvertising
16 Quick Review Question #2 Which of the following is most likely to be a fixed cost?Materials costsRentAssembly labor costCommissions
17 Quick Review Answer #2Which of the following is most likely to be a fixed cost?Materials costsRentAssembly labor costCommissions
18 Quick Review Question #3 Costs incurred in the past are:Opportunity costsDirect costsSunk costsVariable costs
19 Quick Review Answer #3 Costs incurred in the past are: Opportunity costsSunk costsVariable costs
20 Quick Review Question #4 What does it mean to “Get What You Measure?”