Management Accounting：Information that Creates Value.ppt

Management Accounting:Information that Creates Value
Chapter 1
Learning Objective 1
Appreciate the important role that management accounting information plays in both manufacturing, service, non-profit, and anizations.
Management Accounting Information
What is management accounting information?
It is a value adding process of planning, designing, measuring, and operating nonfinancial and financial information systems that guides management action.
Management Accounting Information
Operational and
Financial Data
Processing
Actions
Management Accounting Information
What are some examples of management accounting information?
reported expenses of an operating department
calculated costs of producing a product
measurements of economic performance
Learning Objective 2
Discuss the significant differences between management accounting and financial accounting.
Financial Accounting
Financial accounting is constrained by mandated reporting requirements:
Financial Accounting Standards Board
Securities and mission
International Accounting mittee
Financial Accounting
Financial accounting provides information to external constituencies on past performance.
Historically
Oriented
Rules
Driven
Objective and
Aggregate
Financial
Measures
Management Accounting
Management accounting systems provide information to managers and employees within anization.
Companies have discretion to design systems that provide information in order to make decisions about anization’s financial, physical, and human resources.
Management Accounting
Management accounting provides information to internal constituencies.
Current and
Future
Oriented
No Regulations
Subjective and
Disaggregate
Financial,
Operational, and
Physical Measures