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Managerial Accounting & the Business Environment

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Presentation on theme: "Managerial Accounting & the Business Environment"— Presentation transcript:

1 Managerial Accounting & the Business Environment
Chapter 1 Managerial 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 internet Just-in-Time production Total Quality Management International competition Business environment changes in the past twenty years

5 The Changing Business Environment
New tools for managers! Just-In-Time Total Quality Management Process Reengineering Theory of Constraints

6 Expanding Role of Managerial Accounting
Increasing complexity and size of organizations Regulatory environment Factors that increase the need for managerial accounting information Increased emphasis on quality World-wide competition Rapid 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 competence treat sensitive matters with confidentiality Maintain personal integrity Be objective in all disclosures

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.

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