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Managerial Accounting: 8 Edition BY Hansen & Mowen
Managerial Accounting: 8 Edition BY Hansen & Mowen
Gail B. Wright
Professor Emeritus of Accounting
Bryant University
MANAGERIAL
ACCOUNTING
8TH EDITION
BY
HANSEN & MOWEN
1 INTRODUCTION
1
LEARNING
OBJECTIVES
LEARNING
OBJECTIVES
LEARNING GOALS
LEARNING
LEARNING OBJECTIVES
OBJECTIVES
1. Discuss the need for management
accounting information.
2. Differentiate between management
accounting & financial accounting.
3. Provide a brief historical description of
management accounting.
Continued
3
LEARNING
LEARNING OBJECTIVES
OBJECTIVES
4. Identify the current focus of management
accounting.
5. Describe role of management accountants in
an organization.
6. Explain importance of ethical behavior for
managers, management accountants.
7. List 3 forms of certification available to
management accountants.
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Questions to Think About
Should management
accounting information
provide both financial &
nonfinancial information?
LEARNING
LEARNING OBJECTIVE
OBJECTIVE
LO 1
MANAGEMENT ACCOUNTING:
Objectives
Costing services, products, other
objectives of interest to management;
Planning, controlling, evaluating, &
continuous improvement;
Decision making.
10
LO 1
INFORMATION NEEDS:
Costing & Decision Making
Economic Events
Collecting,
Measuring, Storing,
Analyzing, Reporting,
Managing
INPUTS
INPUTS
PROCESSES
PROCESSES
OUTPUTS
OUTPUTS
USERS
USERS
EXHIBIT 1-1
11
LO 1
INFORMATION NEEDS:
The Management Process
Planning
Detailed actions to achieve a particular end
Controlling
Monitoring plan implementation & employing
corrective action when necessary
Decision making
Choosing among competing alternatives
12
LEARNING
LEARNING OBJECTIVE
OBJECTIVE
Differentiate between
management accounting
& financial accounting.
13
LO 2
14
LO 2
A COMPARISON:
Management vs. Financial Accounting
EXHIBIT 1-2
15
LEARNING
LEARNING OBJECTIVE
OBJECTIVE
16
LO 3
17
LO 3
MANAGERIAL
MANAGERIAL ACCOUNTING
ACCOUNTING
HISTORY
HISTORY
Beginnings between 1880 and 1925
Pre-1915, management accounting focused on
product costing, that is, what products provided
best profit
LEARNING
LEARNING OBJECTIVE
OBJECTIVE
19
LO 4
20
LO 4
CURRENT FOCUS
Need for innovation and relevant produces:
Activity based management
ABC Improves accuracy of assigning costs
Customer orientation
Strategic positioning to maintain competitive advantage
Value chain framework to focus on customer value
Continued
21
LO 4
CURRENT FOCUS
Need for innovation and relevant produces
(cont.)
LO 4
23
LO 4
EXHIBIT 1-3
A value chain
combines the output
of several firms
sequentially to meet
customer needs.
24
LO 4
25
LEARNING
LEARNING OBJECTIVE
OBJECTIVE
26
LO 5
SARBANES-OXLEY
Enhanced the role of the management
accountant by
Tightening regulation of corporate
governance
Establishing controls over management
Raising importance of managements
assessment of internal controls
27
LO 5
28
LO 5
EXHIBIT 1-4
29
LEARNING
LEARNING OBJECTIVE
OBJECTIVE
Explain importance of
ethical behavior for
managers & management
accountants.
30
LO 6
MANAGEMENT ACCOUNTING:
Designed for Profit Maximization
LO 6
LEARNING
LEARNING OBJECTIVE
OBJECTIVE
List 3 forms of
certification available to
management
accountants.
33
LO 7
34
LO 7
CERTIFICATION
Signifies the accountant has met
requirements for
Education
Experience
35
LO 7
3 CERTIFICATIONS
CMA (Certified Management Accountant)
Meets needs for knowledge of economics,
financial & managerial accounting, decision
analysis & information systems
CHAPTER 1
THE
THE END
END
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