BUS 108 Chapter Notes - Chapter 1: Management Accounting, Cost Accounting, Standard Cost Accounting
Document Summary
Legend: yellow= book grey= learning objectives teal= examples. The work of management: planning: formulating long-term and short-term plans, implementing plans: directing activities and motivating workers, controlling: measuring performance and comparing actual to planned performance, decision-making: all of the above activities involve decision-making. Managerial planning and controlling makes individual managers accountable for their performance. Planning and decision making helps managers improve their performance. To distinguish between financial accounting and cost accounting: objectives of cost and management accounting (for inventory valuation, income determination, and pricing decision, product costing, providing information for managerial planning and controlling of activities, providing information for managerial decision-making. Financial accounting: historical costs, cost allocations (assigning costs) To describe the organizational environment of the accounting function: organizational structure and the work of management accountants. Middle management: reports to vice president (decision makers/planning and coordinating events) General accounting group: responsible for processing all transactions on a daily basis, supervisory bookkeeper. Budgeting group: organizes prep of company, divisional, department budgets.
