AFM102 Lecture Notes - Lecture 1: Management Accounting, Organizational Chart, Data Element

• School: University of Waterloo
• Department: Accounting & Financial Management
• Course: AFM102
• Professor: Catherine Wong

Document Summary

Chapter 1 managerial accounting and the business environment. Provides information to managers for decision making, planning and controlling operations. Provides data that help organizations run more efficiently. Helps managers make business decisions that satisfy customers while monitoring costs and improving efficiencies. Managerial accounting differs from financial as it is oriented more towards the future, places less emphasis on precision, emphasizes segments of an organization rather than as a whole, is not governed by gaaps and is not mandatory. Planning develop goals and how to achieve them. Plans are often accompanied by a budget (detailed plan for the future that is quantitative). Budgets are usually prepared on an annual basis under the direction of the controller (manager in charge of accounting department) Directing and motivating mobilizing people to carry out plans and run routine operations. Controlling gathering feedback to ensure the plan is properly executed or if not changed. Involves gathering, evaluating and responding to feedback to ensure expectations are met.