Presentation Topic

Managerial Accounting and the Business Environment

Presented By

Rasel Bhuyan
ID: 160201010022
Managerial Accounting

Managerial accounting is the practice of identifying, measuring,

analyzing, interpreting, and communicating financial information to
managers for the pursuit of an organization's goals.
Need For Managerial Accounting
Information

Planning Directing And

Planning involves Controlling
Motivating It involves ensuring
establishing a basic It involves that the plan is actually
strategy, selecting a
mobilizing people carried out and is
course of action and
to carry out plans appropriately modified
specifying how the as circumstances
action will be and run routine
change.
implemented operations.
 Comparison of Financial and Managerial Accounting

Financial Accounting Managerial Accounting

Reports to those outside the organization-
owners, lenders, tax authorities.
Emphasizes Financial consequences
of past activities.
Emphasizes objectivity and
verifiability
Emphasizes precision
Must follow GAAP
Reports to those inside the organization
for: planning. Directing and Motivating,
Controlling
Emphasizes decisions affecting the future
Emphasizes relevance
Emphasizes timeliness
Need not follow to GAAP
Process Management

A business process is a series of steps that are followed in order to

carry out some task in a business.

Value Chain

A Value Chain consists of the major business functions that add

value to a company’s products and services.
The Theory of Constraints (TOC)

A constraint is anything that prevents you from getting more of what you to want. Every
individual and every organization faces at least one constraint.
The Theory of Constraints is based on the insight that effectively managing the constraint is
a key to success.
 Six Sigma

Six Sigma is a process improvement method that relies on customer feedback and fact based
data gathering and analysis techniques to drive process improvement.

The most common framework used to guide Six Sigma process improvement efforts is
known as DMAIC, which is stands for Define, Measure, Analyze, Improve, and Control.
 E-Commerce

E-commerce refers to business that is conduct using the internet. E-commerce is the buying
and selling of goods and services, or the transmitting of funds or data, over an electronic
network, primarily the internet.

Enterprise Systems

An enterprise system is designed to overcome these problems by integrating data across an

organization into a single software system that enables all employees to have simultaneous
access to a common set of data.
Conclusion

Managerial Accounting prepares a variety of reports, some reports focus on how

well managers or business units have performed-comparing actual results to plans
and to benchmarks. Some reports provide timely, frequent updates on key
indicators such as orders received, order backlog, capacity utilization and sales.