Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall. Financial Accounting Reporting the firm’s successesand failures Managerial Accounting Creating the firm’s successes and failures
Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall. 2 Managerial vs Financial Accounting Course Process Details Course Content Overview & Learning Objectives
Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall. Fireball Company makes a Halogen bulb as a component of a specialty lighting system. Fireball Company’s internal “make” cost is $30 per units produced. (including all production costs from their ERP system) Fireball can “buy” these for $20 FOB Destination per 20,000 units. Which option should we take boss? What is holding back your full commitment? Fireball Company makes a Halogen bulb as a component of a specialty lighting system. Fireball Company’s internal “make” cost is $30 per units produced. (including all production costs from their ERP system) Fireball can “buy” these for $20 FOB Destination per 20,000 units. Which option should we take boss? What is holding back your full commitment?
Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall.
Financial Accounting Reporting the firm’s successes and failures Managerial Accounting Creating the firm’s successes and failures
Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall. Financial: standardized reports for external use by investors, lenders, and others Managerial: customized internal information to gain competitive advantages Financial Accounting vs.
Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall. Managerial: customized internal information to gain competitive advantages Financial: standardized reports for external use by investors, lenders, and others Financial Accounting vs.
Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall. Managerial: customized internal information to gain competitive advantages Financial: standardized reports for external use by investors, lenders, and others
Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall. FinancialManagerial Designed to be used by Outsiders: investors, lenders, etc. Internal Management Time Perspective Reporting on past performance Decisions to effect the future EmphasisStandardized by GAAP – doing it the same as everyone else Customized to specific company, segment, and individual decision needs. RequirementsGAAP standards of conformity Whatever the company needs BenefitDisplay performance of a company Build competitive advantages and profits
Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall. Total cost of goods sold (COGS) for the Volkswagen group Additional costs incurred by adding one more option to a new Audi All-Road wagon Best Buy earned $1.2B of sales of $50B last year. The particular business segments performances that are bringing them down Should I invest in UPS?Will elimination of 2 day service increase or decrease our (UPS) profits?
Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall. Is managerial accounting important? Global economy Speed, impatience, information, and aggression Customer expectations: low price / high everything else Does it help my career if I am not an accountant?
Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall. 12 Managerial vs Financial Accounting Course Process Details Course Content Overview & Learning Objectives
Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall. Course Information Sheet Tutors? Contacts Homework. Two required tests One required project, in two steps
Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall. 14 Managerial vs Financial Accounting Course Process Details Course Content Overview & Learning Objectives
Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall. Ethical radar and corporate governance Understanding cost behavior so we make profitable decisions Using the information we generate Practicality: Inexpensive and useful trumps expensive, perfect, and wasteful Selling your position
Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall. Get your feet wet Environment Cost types Cost flow Cost flow options Job & process Activity Based Cost Volume Profit Analysis Decisions based on the above tools
Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall. More decision making situations Capital budgeting Budgeting Variance analysis Segment performance evaluation
Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall. Apply course lessons to your vision Central Themes Quantifying your business ideas using formal business research resources Creating budgets Using basic Excel spreadsheet capabilities to get it done Getting it done using YOUR creativity and fortitude
Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall. Form groups by ethical dilemma. Select 1 business related ethical dilemma. Answer the questions on the paper Really think and don’t settle for just the short obvious answers. Be creative. Explore the possible extensions of what to do along with the obvious choices. Your team will have 10 minutes to prepare for a class discussion on your topic.