Introduction to Accounting 311 Student information sheets Syllabus

Introduction to Accounting 311 • • Student information sheets Syllabus Chapter 1 in text Words of wisdom for life & business 2009 Foster Business School Cost Accounting L. Du. Charme 1

My Office Fees* Answers: 5 cents Solutions: 25 cents Advice: Priceless * Effective 1/1/2009 Foster Business School Cost Accounting L. Du. Charme 2

Advice • Four things you need for business success: – 1) Hard work – 2) Network of relationships – 3) A little luck – 4) Reasonable intelligence 2009 Foster Business School Cost Accounting L. Du. Charme 3

Cell Phones • • • Turn cell phones OFF before class 1 st offense = $1 2 d offense = $5 You cannot afford a 3 d offense. During tests = $20/offense 2009 Foster Business School Cost Accounting L. Du. Charme 4

Accounting Is hard to do/understand without proper training/knowledge. takes extensive exposure/practice to learn. 2009 Foster Business School Cost Accounting L. Du. Charme 5

Accounting Areas (“Specialties”) • • • Financial Audit Managerial Tax AIS Not-for-profit, Governmental All are interrelated. However, managerial is most important. Financial gets your foot in the door; managerial is needed in order to advance to the top of an organization! 2009 Foster Business School Cost Accounting L. Du. Charme 6

Cost versus Managerial Accounting • The same? • Managerial Accounting: – Product/service costing – Planning & Control – Decision making 2009 Foster Business School Cost Accounting L. Du. Charme 7

Financial versus Managerial Accounting What is the difference between the two? 2009 Foster Business School Cost Accounting L. Du. Charme 8

Strategic Cost Management Developing strategy Building resources and capabilities Implementing strategy 2009 Foster Business School Cost Accounting L. Du. Charme 9

Planning and Controlling Management Accounting System Planning Budgets Control Accounting System Performance Evaluation Performance Reports Feedback Management Decision 2009 Foster Business School Cost Accounting L. Du. Charme 10

Planning and Controlling What is planning? Setting goals 2009 Foster Business School Predicting results Cost Accounting L. Du. Charme Deciding how to attain goals 11

Planning and Controlling What is control? Deciding and taking actions 2009 Foster Business School Cost Accounting Deciding on performance evaluation and feedback L. Du. Charme 12

Planning and Controlling What are budgets? They are quantitative expressions of a proposed plan of action. 2009 Foster Business School Cost Accounting They aid in the coordination and implementation of the plan. L. Du. Charme 13

Planning and Controlling What are performance reports? These are reports that compare actual results with budgeted amounts. A single report that contains both financial and nonfinancial measures of performance is called a Balanced Scorecard. 2009 Foster Business School Cost Accounting L. Du. Charme 14

Performance Report Example Boone Shop, July 2008 Budget Revenues $59, 000 Cost of goods sold 42, 000 Wages 6, 700 General 1, 300 Fixed costs 5, 000 Operating income $ 4, 000 2009 Foster Business School Cost Accounting L. Du. Charme Actual $60, 000 43, 400 7, 000 900 5, 000 $ 3, 700 Variance $1, 000 F 1, 400 U 300 U 400 F 0 $ 300 U 15

Key Themes in Management Decision Making Customer Focus Value Chain and Supply Chain Analysis 2009 Foster Business School Key Success Factors: Cost and Efficiency, Time, Quality, Innovation Cost Accounting L. Du. Charme Continuous Improvement and Benchmarking 16

Value Chain The term “value chain” refers to the sequence of business functions in which usefulness is added to the products or services of an organization. The term “value” is used because as the usefulness of the product or service is increased, so is its value to the customer. 2009 Foster Business School Cost Accounting L. Du. Charme 17

Typical Value Chain R&D Design Production Management Accounting Marketing 2009 Foster Business School Cost Accounting Distribution L. Du. Charme Service 18

3 -Key Management Accounting Guidelines 1. Cost-benefit approach 2. Full recognition of behavioral as well as technical considerations 3. Using different costs for different purposes 2009 Foster Business School Cost Accounting L. Du. Charme 19

Professional Ethics (very important to Management Accountants) Competence Integrity Confidentiality Objectivity 2009 Foster Business School Cost Accounting L. Du. Charme 20

Ethical Guidelines The Institute of Management Accountants (IMA) is the largest association of management accountants in the United States. The IMA has issued a Standards of Ethical Conduct for Management Accountants. See Exh. 1 -7 in text 2009 Foster Business School Cost Accounting L. Du. Charme 21

Four- vs. Five-year Program CMA versus the CPA Page 843 -4 in text gives a very brief outline of the CMA exam. IMA web site = http: //www. imanet. org 2009 Foster Business School Cost Accounting L. Du. Charme 22