Welcome!

Managerial accounting.
Managerial Accounting and the Business Enviromnent

M.A. Luz María Chávez Alcántar (lmchavez@itesm.mx)

My Background
• Sep 06- May 08, Tecnológico de Monterrey, Campus Querétaro, Master in Business Administration, 2008 • Jan 01 – Dec 05, Tecnológico de Monterrey Campus Querétaro, B.A. Finance and Acconting • Grupo KUO: Treasury and Financing Specialist. • Tecnológico de Monterrey: Consultant in the business incubator. • MAN Truck and Bus México: Cost and financial analyst. • Kellogg de México: Financial Professional • Sika Mexicana: Financial Planning.

Methodology
• Check the activities that correspond to each session before, during and after it. • Our course will involve three different work scenarios: • Interactive Teaching: active participation, solving exercises and clarification of doubts. • Autonomous learning: previous reading, selfassesment. • Collaborative learning: working teams

Once started the class. Any material covered in class or for homework is a topic for tests .Code of ethics and class policies • PUNCTUALITY: Access to the classroom will be only during the first 5 minutes of class time. the door will be closed • ASSISTANCE: Remember that by regulation. there is a limit of 4 absences if your grade average is less than 83 during the semester • TEST TOPICS.

If it is not delivered within the corresponding period. Each has a deadline.• CLASS REPLACEMENT: It will have to replace the classes not given. it will be not be received by email or printed (no exceptions under any condition). according to available time for students and teacher. . It is YOUR RESPONSIBILITY to deliver on time each of the homework assigned. • DELIVERY OF HOMEWORK.

name. such as: • Present no misspellings.• Remember that homework must meet certain requirements. • The fist page must include the homework title. teacher’s name. student number. • It is important that you mention and reference all the bibliographical sources used to perform your homework . subject name and date of delivery.

00 (seventy out of a hundred).• QUICK QUIZZES AND HOMEWORKS. The minimum passing grade for partial and final test is 70. It is not allowed to enter the classroom with cell phones on. The fact that any cell phone or nextel ring during class hours will be penalized . • CELL PHONES AND NEXTEL. • AD (Academic Dishonesty) • copy of homework is also penalized with 1 / 100 of grade in the homework • PASSING GRADE. The copy in exams and assignments is penalized.

Official Analytical Program of Management Accounting • • • • • Cost classification and cost segmentation. • Introduction to Control Management . Financial Planning (Master Budget). The Cost – Volume – Profit Model Costing Systems Marginal Analysis and short term decision making.

Course Evaluation • • • • • • • • • Partial Grades: Individual Homework Team Homework Tests Total Final Grades: Partial Grades (3): Final Test: Total: 15% 15% 70% 100% 75% 25% 100% .

Course Objective • To the end course the student must be able to use: Marketing Economics Concepts With Managerial Accounting Concepts and techniques for planning and decision making Operation .

Managerial Accounting. McGraw-Hill . Ray and Noreen. Eric.Bibliography: • Garrison. Last edition. Ed.

Managerial Accounting and the Business Enviromnent .

All types of organizations… …have a need for accounting information .

What is accounting? Is the process of: • • • • • Measure (in $) Register Classify Summarize Report events and transactions of a financial nature communicate this information to its users to facilitate decision making .

* Unit in inventory * Budgeted hours.A Contemporary View of Accounting Information. * Product or service quality. Accounting Information Traditional Financial Accounting Information Nonfinancial Information Financial Information * Assets * Liabilities * Revenues * Gross margin * Operating expenses Other Quantitive Information * Percentage of defects. * Employee satisfaction.. Qualitative Information * Customer satisfaction. *Warranty claims. * Number of customer complaints. * Reputation .

A comparison of Financial and Managerial Accounting * Creditors * Investors * External users Financial accounting Preparation and use of financial statements Managerial accounting Generating financial and non financial information * Internal users .

Regulators Suppliers Customers And others outside the company • • • • • • Individual employees Teams Departments Regions Top Management Others inside the company (managers) .Users External Users Internal Users • • • • • • • • Stockholders Potential investors Creditors Goverment taxing agencies .

and nonfinancial information. such as banks or potential donors to nonprofit organizations.External users External users of financial information. such as how many woman with children are served by the local homeless shelter . Potential contributors to nonprofit organizations may have a need for both financial information. such as how much of the Red Cross’ budget is spent for charitable purposes. still need accounting information to make the proper decision about lending or donating money.

Suppliers and customers are also external users… Suppliers of car parts to Need detailed information on inventory levels of specific parts When to manufacture In order to know Ship parts .

Internal users: Planning Activities Short-term (operational) Planning involves The development of Long-term (strategic) The identification of the resourses needed to achieve them Objectives and goals of an organization Operational planning involves Development of short-term objectives and goals Those to be achieved in less than one year .

Examples of operational planning Include planning the raw material and production needs for each type of ice cream for the next four quarters Determining the company’s short-term cash needs. .

. The focal point of a company’s strategy should be its target customers.Strategy A strategy is a “game plan” that enables a company to attract customers by distinguishing itself from competitors.

Strategic planning • Addresses long-term questions of how an organization positions and distinguishes itself from competitors. Ben & Jerry’s strategy for producing high-quality ice cream Is very different From that used by a company producing a store brand of lower-priced ice cream .

Operating Activities • The day-to-day operation of a business Controlling activities • The motivation and monitoring of employees and the evaluation of people and other resources used in the operations of the organization .

• Responsible for managing the financial resources of the organization. production function Marketing function Finance function Human resource function • Involved with the process of developing. pricing. promoting. and distributing goods and services sold to customers.The Functional Areas of Management Operations and • Produces the products or services that an organization sells to its customers. • Concerned with the utilization of human resources to help an organization reach its goals .

etc. This information is often provided in summary form (for the company as a whole) and typically is historical in nature. Although this information is primarly financial. gross profit. and other available documents. cash flow. earnings per share.External and internal users of accounting information Users External Shareholders and creditors Type of Accounting Information Needed Sales. net income. financial statements. Source Annual reports. assets and liabilities. . it may also include nonfinancial information (units in inventory).

. It can include both financial and nonfinancial information.External and internal users of accounting information Users External Government agencies Type of Accounting Information Needed Source Varies by agency but includes Tax returns and taxable income. This information is usually provides for the company as a whole and is historical in nature. sales. other reports comparisons of actual expenditures to budgets. etc. assets.

etc. shipping dates. suppliers inventory levels. .External and internal users of accounting information Users External Type of Accounting Information Needed Source Limited-access databases available to specific customers and suppliers. Customers and Order status. This information must be very detailed and timely to be useful.

Users Internal Marketing.). External and internal users of accounting information . and other internal documents. budgets. and measures of performance. and human resource managers. Type of Accounting Information Needed Timely and detailed information on sales and expenses. budget information. finance. Often includes nonfinancial data (direct labor hours. units to break even. Accounting information is often n eeded for segments of an organization and is more likely future oriented than historical Source Cost reports. product costs. etc. operations and production.

buy not mandatory. .Managerial Accounting vs Financial Accounting Recording and reporting information: • Managerial Accounting: helpful. • Financial Accounting: required and provided on a regular basis.

. without restrictions.Managerial Accounting vs Financial Accounting Standards of reporting and data format: • Managerial Accounting: any way that managers find it useful. • Financial Accounting: subject to principles in his presentations (Generally Accepted Accounting Principles).

. • Financial Accounting: historical data.Managerial Accounting vs Financial Accounting Type of information presented: • Managerial Accounting: recent actual data and estimated future data.

Managerial Accounting vs Financial Accounting Approach information: • Managerial Accounting: segment information. • Financial Accounting: information of the organization as a whole. .

sales and marketing specialists. economists. • Financial Accounting: financial accountants and auditors . etc. engineers.Managerial Accounting vs Financial Accounting Information providers: • Managerial Accounting: managerial accountants.

.Managerial Accounting vs Financial Accounting • Similarities: • Both are based on the same information system. • Both issued reports on the activities of the organization concerning in a given period of time.

• Give the necessary data for the operational control.Objectives of Managerial Accounting • Facilitate the operational planning • Facilitate the follow up of the plans that are being implemented. • Give the necessary data for decision making .

5 hours Objective: To know the main ideas and concepts on the topic that we will learn during the second session: “Costs Segmentation” and present your questions clearly and accurately. • Instructions: • Read the chapter 2 of textbook (Garrison and Noreen) for the topic: “Managerial Accounting and Cost Concepts”. • Take note of your questions to be answered during class. 2-9 and 2-13 (page 58) . 2-6. • Answer the questions 2-2.Homework # 1 • • • • • • Homework No. 2011 1. : Delivery format: Delivery date: Estimated time: 1 Individual August 11.