RSM222H1 Study Guide - Fall 2018, Comprehensive Midterm Notes - Management Accounting, Income Statement, Financial Accounting
RSM222H1
MIDTERM EXAM
STUDY GUIDE
Fall 2018
Lecture 1 notes: introduction to management
accounting.
What is managerial accounting?
A measurement procedure which provides information
about an organization’s economic value of its
economic activities. It also provides information for
managers to facilitate strategy implementation.
Financial accounting
1. External
2. It is not relevant to the future, it is based more on the
past years.
3. Verifiable
4. Precision
5. It is focused on the companywide reports.
6. There are rules to follow, such as GAAP/IFRS/ASPE.
7. They are mandatory for external reports
Managerial accounting
1. Internal
2. Forward looking: these are all the assumptions
3. Relevant information to decision making
4. Timeliness. Because managers need to these
information urgently, they need to make decision
now and this makes they need to roughly estimate
the inventory.
5. It is more on the segment reports. Example, as a
Canadian company, whether is it possible to enter
the US market.
6. No rules to follow. Managerial accounting does not
need to take the rules like GAAP/ASPE/IFRS.
7. Requirement: not mandatory
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The big picture.
What is the purpose of an organization?
How can a manager achieve that purpose?
Mission statement: what the company values
Vision: what the company want to become
Mission and vision statement are communicating
purpose to the stakeholders.
Strategy: how we can fulfill the goal.
Goals and objectives: how we can gauge the success.
Every company has the mission and vision.
Strategies are not communicating to the stakeholders.
Strategy is a game plan that enables a company to
attract customers by distinguishing itself from
competitors.
The focal point of a company’s strategy should be its
target customers.
Customer value propositions: reasons why customers
would choose the company’s products over its
competitors.
Customer intimacy: understand and respond to the
individual customer needs
Example: Sephora is a make-up retailer and you can
make an appointment if you want to make-up makeover
find more resources at oneclass.com
find more resources at oneclass.com
Document Summary
A measurement procedure which provides information about an organization"s economic value of its economic activities. It also provides information for managers to facilitate strategy implementation. Managerial accounting: internal, forward looking: these are all the assumptions, relevant information to decision making, timeliness. Because managers need to these information urgently, they need to make decision now and this makes they need to roughly estimate the inventory: it is more on the segment reports. Canadian company, whether is it possible to enter the us market: no rules to follow. Managerial accounting does not need to take the rules like gaap/aspe/ifrs: requirement: not mandatory. Mission and vision statement are communicating purpose to the stakeholders. Goals and objectives: how we can gauge the success. Strategy is a game plan that enables a company to attract customers by distinguishing from competitors. The focal point of a company"s strategy should be its target customers.
