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Managerial Accounting

Managerial Accounting Fifth Edition
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also called management accounting.     Corporations Proprietorships Partnerships Not-for-profit Page 1-2 . Managerial accounting applies to all types of businesses. is a field of accounting that provides economic and financial information for managers and other internal users.Managerial Accounting Basics Managerial accounting.

Managerial Accounting Basics Comparing Managerial And Financial Accounting Page 1-3 .

Managerial Accounting Basics Management Functions Planning Looking ahead Setting goals and objectives Directing Coordinate activities and human resources Implement objectives Provide incentives to motivate employees Hire/train employees Produce smoothrunning operation Controlling Keeping activities on track Determine whether goals are met Decide changes needed to get back on track Page 1-4 .

Managerial Cost Concepts Manufacturing Costs Manufacturing consists of activities and processes that convert raw materials into finished goods. Page 1-5 .

Direct Materials Raw materials that can be physically and directly associated with the finished product Indirect Materials Not physically part of the finished product or Page they are an insignificant 1-6 .Manufacturing Costs Materials Raw Materials Basic materials and parts used in manufacturing process.

Indirect Labor Work of factory employees that has no physical association with the finished product. Page 1-7 .Manufacturing Costs Direct Labor Labor Work of factory employees that can be physically and directly associated with the product.

Manufacturing Costs Manufacturing Overhead Costs that are indirectly associated with manufacturing the finished product. Includes all manufacturing costs except direct materials and direct labor. Page 1-8 BE4 .

Product Versus Period Costs Page 1-9 BE6 .

Manufacturing Costs in Financial Statements Cost of Goods Sold Components Page 1-10 .

Manufacturing Costs in Financial Statements Cost of goods sold sections of merchandising and manufacturing income statements Page 1-11 .

Manufacturing Costs in Financial Statements Determining the Cost of Goods Manufactured Total Work in Process – (1) cost of beginning work in process and (2) total manufacturing costs for the current period. Page 1-12 . and manufacturing overhead in the current year. Total Manufacturing Costs – sum of direct material costs. direct labor costs.

Manufacturing Costs in Financial Statements Cost of Goods Manufactured Schedule Page 1-13 BE 10 & 11 .

Manufacturing Costs in Financial Statements Balance Sheet Inventory accounts for a manufacturer Page 1-14 .

Manufacturing Costs in Financial Statements Balance Sheet Current assets sections of merchandising and manufacturing balance sheets Page 1-15 BE9 .