1. Managerial Accounting & the Business Environment
Chapter 1
Managerial Accounting & the Business Environment

2. Managerial Accounting and Financial Accounting
Managerial accounting provides information for managers inside an organization who direct and control its operations.
Financial accounting provides information to stockholders, creditors and others who are outside the organization.

3. Differences Between Financial and Managerial Accounting

4. The Changing Business Environment
Growth of the internet
Just-in-Time production
Total Quality Management
International competition
Business environment changes in the past twenty years

5. The Changing Business Environment
New tools for managers!
Just-In-Time
Total Quality Management
Process Reengineering
Theory of Constraints

6. Expanding Role of Managerial Accounting
Increasing complexity and size of organizations
Regulatory environment
Factors that increase the need for managerial accounting information
Increased emphasis on quality
World-wide competition
Rapid development and implementation of technology

7. Importance of Ethics in Accounting
Ethical accounting practices build trust and promote loyal, productive relationships with users of accounting information.
Many companies and professional organizations, such as the Institute of Management Accountants (IMA), have written codes of ethics which serve as guides for employees.
Code of Conduct for Management Accountants

8. IMA Code of Ethics for Management Accountants
Four broad areas of responsibility:
Maintain a high level of professional competence
treat sensitive matters with confidentiality
Maintain personal integrity
Be objective in all disclosures

9. CAREER OPPORTUNITIES IN MANAGEMENT ACCOUNTING
Over 2/3’s of all professional accountants work as Management Accountants.
Management Accounting has become a route to the top!
Leadership + Accounting Credential = Potential for Success!!!

10. The SRC Story Formerly Interna-tional Harvestor Jack Stack.
98.9% financed at 22%.
The “Game of Business” Philosophy.