1. Managing Resources, Activities, and People
Directing
An organization . . .
Decision
Making
Acquires Resources
Organized set
of activities
Planning
Controlling
Hires People

2. How Managerial Accounting Adds Value to the Organization
Providing information for decision making and planning.
Assisting managers in directing and controlling activities.
Motivating managers and other employees towards organization’s goals.
Measuring performance of activities, managers, and other employees.
Assessing the organization’s competitive position.

3. The Balanced Scorecard
Financial Perspective
Goals Measures
How do we look to owner’s?
In which activities must we excel?
Customer Perspective
Goals Measures
Operations Perspective
Goals Measures
How do customers see us?
How can we continue to improve?
Innovation Perspective
Goals Measures

4. Managerial versus Financial Accounting
Accounting System
(accumulates financial and
managerial accounting data)
Managerial Accounting
Information for decision
making, and control
of an organization’s
operations.
Financial Accounting
Published financial
statements and other
financial reports.
Internal
Users
External
Users

5. Managerial versus Financial Accounting

6. Line and Staff Positions
A line position is directly involved in achieving the basic objectives of an organization.
Example: A production supervisor in a manufacturing plant.
A staff position supports and assists line positions.
Example: A cost accountant in the manufacturing plant.

7. Evolution and Adaptation in Managerial Accounting
Service Vs. Manufacturing
Firms
Computer-Integrated
Manufacturing
Information and
Communication
Technology
Emergence of New
Industries
Change
Global Competition
Product Life Cycles
Total Quality
Management
Focus on the Customer
Cross-Functional Teams
Time-Based Competition
Continuous Improvement
Just-in-Time Inventory

8. Strategic Cost Management and the Value Chain
Product
Design
Production
Research
and
Development
Marketing
Securing raw
materials and
other resources
Distribution
Customer
Service
Start

9. Resolution of Ethical Conflict
Professional Ethics
Competence
Confidentiality
Integrity
Objectivity
Resolution of Ethical Conflict