Welcome to ACF 231 Management Accounting Lecturer Cynthia

Welcome to ACF 231 Management Accounting Lecturer: Cynthia Fortin, CPA, CMA Email: cynth_fortin@yahoo. ca Wechat: cynthia 20131001 Repository for all documents: www. uwcentre. ac. cn/haut 1

Prologue ACF 231 Management Accounting Introduction to Managerial Accounting, Brewer, Garrison, Noreen Power Points from website - adapted by Cynthia Fortin, CPA, CMA http: //highered. mheducation. com/sites/0078025419/student_v iew 0/prologue/index. html 2

Learn techniques MANAGERS use to produce timely and relevant information to make sound business decisions. 3

What does Management Accounting do? • Measures and reports information to help managers make decisions • Internal reporting • Future oriented 4

Managers use Managerial Accounting – Choose – Communicate – Implement 5 1 -2

Financial Accounting • Measures and records business transactions and provides financial statements that are based on generally accepted accounting principles (GAAP) and/or IFRS • Focuses on external parties • Reports on what happened in the past – Historical based • Managers are responsible for the financial statements issued to investors, government regulators, and other parties outside the organization 6 1 -3

Financial Accounting Managerial Accounting Users External Internal Time Frequency Source Past Future Month/Q/Yr On demand Objective Relevant 7

Financial Accounting Managerial Accounting Quality Precise Timely Purpose Communicate Required Rules Mandatory GAAP/IFRS Make decisions 8

Measurement Skills Planning The primary purpose of this course is to lecture measurement skills that managers use to support Controlling Decision Making 9

What do managers do? Plan Control Make sound Decisions 10

Planning Establish goals. How will goals be achieved? Action plan Develop Budgets. 11

Controlling Gathers actual results to compare to the plans 12

Decision Making Choose between alternatives 13

Going about creating value Value Chain Research and Development Product Service Process Design Production Customer Marketing Distribution Service 14 1 -10

Going about creating value Value Chain Research and Development Product Service Process Design Production Customer Marketing Distribution Service 15 1 -10

Traditional Manufacturing Produce Goods in Anticipation of Sales Store Inventory Make Sales from Finished Goods Inventory 16

Lean Production Customer places an order Create Production Order Generate component requirements Goods delivered when needed Production begins as parts arrive Components are ordered 17

Understand the problem to know what data to analyze and measure data-driven analysis 18

Measurement Skills What net income should my company report to its stockholders? Report historical data that complies with GAAP/IFRS 19

Measurement Skills How will my company serve its customers? Measure and analyze mostly nonfinancial, process-oriented data. 20

Measurement Skills Will my company need to borrow money? Measure and analyze estimated future cash flows. 21