1. Introduction to Accounting Preparing for a User’s Perspective
What is the management cycle and how does accounting facilitate it?
Debits and Credits Trainer
By Kevin C. Kimball, CPA
with support from
Free Jan. 2014
Available on the Google Play Store

2. Discuss & Implement Solutions
Identify problems
Objectives
Make suggestions
Give input
Organization
Discuss & Implement Solutions
Leaders
Management
Cycle

3. Plan
Decide
Direct
Objectives
Improve
Control

4. Plan
Objectives
Leaders
Management
Plans

5. Objectives
plans
Management
Raise our value $1 B.
Shareholders
Board of Directors

6. “A goal without a plan is just a wish” Antoine de Saint-Exupéry.

7. Effective
Efficient
Objectives
Plans
Direct

8. North American Operations FedEx Supply Chain Services, Inc.
Manager
North American Operations FedEx Supply Chain Services, Inc.
Effective: Delivered in one day.
Efficient: Used appropriate amount of resources.

9. Collect in < 30 days Credit policies Credit application
Review of financial statements
Credit worthiness
Ability to pay
Willingness to pay
Credit limits
Already?
Time to pay.
Collect in < 30 days

10. Actual
Plan
Control

11. We need to call the doctor.
Hmmm. This should be 98.6 F.

12. Management by Exception
Actual
Budget
Variance
$1,600
$1,000
$600
Rent
What happened here?
Management by Exception

13. Actual
Budget
Variance
Variance %
$1,600
$1,000
$600
60%
Rent
Salaries
$20,600
$21,000
(400)
(1.9%)
Water
$ 3,100 $
(2,700)
675%

14. Honey?! Why is our water bill so high this month?

15. (Net sales revenues – Cost of Goods Sold) / Net sales revenues = Gross Margin %
Actual
Budget
Variance
Variance %
Year 1
Gross margin %
24%
25%
(1%)
(4%)
Year 2
Gross margin %
29%
25% 4%
16%
Year 3
Gross margin %
13%
25%
(12%)
(48%)

16. Budgeted GM % Actual GM % Exception
Free.
No charge.
Exception

17. Management by Exception
Objectives
What happened here?
Management by Exception

18. Improve

22. Improve

23. Plans?
Results
Alternatives
Decide
Objectives?

26. Managerial Accounting Objectives Management Information
Plan
How it’s developed
Decide
Direct
Objectives
Managerial
Accounting
Improve
Control

27. How does accounting facilitate the management cycle?
Plan
Decide
Direct
Objectives
Improve
Control
Past
Present
Future

28. Record
Identify & Analyze
Summarize

29. Accounting is
essential
Plan
Decide
Direct
Objectives
Improve
Control

30. Shouldn’t we turn on our instruments?
Nah.
I got this.

31. Introduction to Accounting Preparing for a User’s Perspective
What are managers and what information do managers use to make business decisions?
Debits and Credits Trainer
By Kevin C. Kimball, CPA
with support from
Free Jan. 2014
Available on the Google Play Store