Welcome to 6219

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Welcome to 6219

• Michael F. van Breda

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Enron

• Any insights?
• What happened to integrity?
• How many were involved in shredding?
• Why didnt anyone blow the whistle?
• Without ethics nothing else matters.

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Who, why, when!

• Why managerial?
• Which classes?
• Your backgrounds?
• Yours truly
• Michael van Breda

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Todays agenda

• Course description
• Websites
• Finding your syllabus etc etc
• Cases other assignments
• Accounting etudes
• Financial to managerial
• Whats it all about?!

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Course description

• Managerial vs. financial
• Fewer rules to learn
• Driven more by economics maybe!
• Three branches
• Emphasis on cost
• Using costs to make decisions
• Budgeting and financial control

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Modules

• Introduction to cost accounting
• Try to keep it short
• Focus on full costs
• Module 1 Costs for decisions
• Focus on relevant costs
• Module 2 Costs for control
• Focus on controllable costs

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Websites

• faculty.smu.edu/mvanbred/acct6219/
• Moving to vanbreda.org/acct6219/
• HTML vs Acrobatvs Java
• WordPerfect vs. Word

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Homework, tests assignments

• Cases
• Get case package
• Groups?
• Geographic?
• PT versus FT?

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Managerial origins

• GM the DuPonts
• Alfred Sloan, CEO
• Donaldson Brown, CFO
• Bob Anthony, Harvard
• Peter Drucker, Claremont
• Heavy metal versus bits bytes
• Japanese contributions

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Chapter 1

• Anthonys framework
• Strategy, managerial control, operations
• Input to value added processes
• Squirrels versus the computer
• Does accounting add value? Finance?
• Does accounting assist strategy?
• Has the world really changed?
• Is there a managerial accounting?!

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Contemporary techniques

• Benchmarking
• Total quality management
• Activity-based costing
• Reengineering
• Theory of constraints
• Life-cycle costing
• Target costing
• Balanced scorecard

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Traditional techniques

• What did it cost?
• How to report those costs?
• What should we include in cost?
• How should we measure cost?
• Whats our goal in analyzing costs?
• How should we use costs in decisions?
• How can we control our costs?

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Insulting your intelligence

• Balance sheet creation
• Asset definition
• Asset cost
• Asset de-recognition
• Sale or use
• Income statements
• Cash flow statements

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Three inventories

• Raw materials
• Direct and indirect
• Work in process
• Finished goods
• Tangible versus intangible assets

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Accounting issues

• Is cash flow sufficient?
• Direct or indirect?
• What does the balance sheet tell us?
• What is an asset?
• How do we measure it?
• What is net income?
• How do we measure net income?

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Insulting your intelligence
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Product versus period costs

• Origins in retail
• Reflects world in which period costs were
  relatively small
• One year in nature
• Dads watch life cycle costing
• One company in nature
• Fails to account for strategic alliances

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Job versus process costing

• Process
• Add up all product costs and average
• Job
• Collect costs per job
• Both require predetermined rates
• Both provide estimated costs only

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Gnight yall