Managerial Accounting and the Business Environment

1
Managerial Accounting and the Business Environment
2
Managerial Accounting and Financial Accounting
Managerial accountingprovides informationfor
managers of anorganization whodirect and
controlits operations.
Financial accountingprovides informationto
stockholders,creditors and otherswho are
outsidethe organization.
3
Differences Between Financial and Managerial
Accounting
4
Work of Management

Planning
Directing and Motivating
Controlling
5
The Changing Business Environment
6
International Competition

• Meeting world-class competition demands a
  world-class management accounting system.
• Managers must make decisions to plan, direct, and
  control a world-class organization.

7
Organizational Structure
An organization is a group of peopleunited for a
common purpose.
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The Controller

• The chief accountant in an organization with
  responsibility for
• Financial planning and analysis.
• Cost control.
• Financial reporting.
• Accounting information systems.

9
Importance of Ethicsin Accounting

• Ethical accounting practices build trust and
  promote loyal, productive relationships with
  users of accounting information.
• Many companies and professional organizations,
  such as the Instituteof Management Accountants
  (IMA),have written codes of ethics whichserve
  as guides for employees.

10
IMA Code of Ethics for Management Accountants

• Competence
• Confidentiality
• Integrity
• Objectivity
• Resolution of Ethical Conflict

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End of Chapter 1