Managerial Accounting Chapter 1 Notes PDF

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Managerial Accounting vs Financial Accounting 

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User groups o Managerial accounting plays a vital role in internal decision making o Financial accounting reports a company’s performance to external parties Time periods o Managerial accounting focuses on projecting future operations o Financial accounting focuses on reporting past operations Rules o Managerial accounting is not bound by external rules o Financial accounting is bound by GAAP

Objectives of Managerial Accounting  

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Managerial accounting systems are created to provide information for decision making, planning and controlling Management accountants must capture, analyze, and report data o Data can consist of financial and nonfinancial information o Data can consist of internal and external information Managerial accounting data must be summarized in a form that is useful to internal users

Types of Business Entities   

Manufacturing – converting materials to a finished product through the use of machinery and/or labor Merchandising – purchase finished products from a manufacturer and then seel the product to a customer Service – neither make nor sell a tangible product

Major Trends  

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Outsourcing Factory automation o Stand-alone automation o Flexible-manufacturing-system automation Just-in-time inventory systems Lean manufacturing Customer profitability Big data and predictive analytics

Careers in Managerial Accounting  

Public vs Private Examples of private accounting roles o Controller o Treasurer

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o Internal auditor Examples of private accounting activities o Evaluating an outsourcing decision o Analyzing customer profitability Commitment to client service and ability to work under deadlines

Professional Certifications  

Certified Public Accountant (CPA) Certified Management Accountant (CMA)...