Presentation on theme: "Managerial Accounting & the Business Environment"— Presentation transcript:
1 Managerial Accounting & the Business Environment Chapter 1Managerial Accounting & the Business Environment
2 Managerial Accounting and Financial Accounting Managerial accounting provides information for managers inside an organization who direct and control its operations.Financial accounting provides information to stockholders, creditors and others who are outside the organization.
3 Differences Between Financial and Managerial Accounting
4 The Changing Business Environment Growth of the internetJust-in-Time productionTotal Quality ManagementInternational competitionBusiness environment changes in the past twenty years
5 The Changing Business Environment New tools for managers!Just-In-TimeTotal Quality ManagementProcess ReengineeringTheory of Constraints
6 Expanding Role of Managerial Accounting Increasing complexity and size of organizationsRegulatory environmentFactors that increase the need for managerial accounting informationIncreased emphasis on qualityWorld-wide competitionRapid development and implementation of technology
7 Importance of Ethics in Accounting Ethical accounting practices build trust and promote loyal, productive relationships with users of accounting information.Many companies and professional organizations, such as the Institute of Management Accountants (IMA), have written codes of ethics which serve as guides for employees.Code of Conduct for Management Accountants
8 IMA Code of Ethics for Management Accountants Four broad areas of responsibility:Maintain a high level of professional competencetreat sensitive matters with confidentialityMaintain personal integrityBe objective in all disclosures
9 CAREER OPPORTUNITIES IN MANAGEMENT ACCOUNTING Over 2/3’s of all professional accountants work as Management Accountants.Management Accounting has become a route to the top!Leadership + Accounting Credential = Potential for Success!!!
10 The SRC Story Formerly Interna-tional Harvestor Jack Stack. 98.9% financed at 22%.The “Game of Business” Philosophy.