1. Principles of Managerial Chapter 1

2. Assignment Exercises 1 and 2

3. Managerial Objectives Providing information Assisting in directing and controlling Motivating managers Measuring performance

4. Financial vs Managerial acct. Financial Reports primarily to outsiders Emphasis summaries of past activities Must be objective and verifiable Must follow GAAP Mandatory in most cases

5. Financial vs Managerial acct Managerial Reports for insiders Emphasis on data for decision making Timeliness is required Need not follow GAAP Not mandatory

6. Ethics for management accts. Adopted by IMA Areas of significance: Competence Confidentiality Integrity Objectivity

7. Just-in-time Eliminate inventories at all levels Purchase only from suppliers that are committed to delivering small, frequent orders that are defect-free. Establish a plant layout (flow line) so the product moves from raw materials to completed goods without layovers in inventory. Zero Defects – line employees are the quality inspectors Flexible workforce – employees are expected to be able to perform many functions.

8. Total Quality Management TQM Two major characteristics: A focus on serving customers Systematic problem solving using teams made up of front-line workers. Benchmarking – involves studying the best organizations in the world at performing a particular task. Plan-Do-Check-Act cycle (Exhibit 1-6) page 18

9. Process Reengineering More radical approach to improvement in which each business process is diagrammed in detail, questioned and then completely redesigned in order to eliminate unnecessary steps and reduce costs. Focuses on simplification and elimination of wasted effort (eliminate all non-value-added activities)

10. Theory of Constraints Constraint is anything that prevents you from getting more of what you want. Attempting to avoid bottlenecks in the assembly line process.

11. Certifications Certified Management Accountant Certified Internal Auditor Certified Public Accountant

12. Assignment In class – P1-9