1. AMIS 310 Foundations of Accounting
Chapter 12 Module 1
CHAPTER 1 MODULE 1
AMIS 310 Foundations of Accounting
Professor Marc Smith

2. Chapter 12 Module 1: Managerial 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. Chapter 12 Module 1: Managerial Accounting

4. Chapter 12 Module 1: Managerial Accounting
In managerial accounting, we look at issues from the perspective of a manufacturer.
Merchandising Company
Buy finished goods.
Sell finished goods.
Manufacturing Company
Buy raw materials.
Produce and sell finished goods.
MegaLoMart

5. Chapter 12 Module 1: Manufacturing Costs
Manufacturing costs are the costs incurred in the
production (manufacture) of a product
Direct Labor
Direct Materials
Manufacturing Overhead
The Product

6. Chapter 12 Module 1: Manufacturing Costs
1. Direct (Raw) Materials
materials used in the production of inventory
2. Direct Labor
labor costs incurred in the production of inventory
3. Manufacturing Overhead
all other costs incurred in manufacturing a product
(overhead includes many different types of costs)