In this chapter students will be able to: Australian organisations in the 21st century, what is management accounting? management accounting and financial accounting information, management accountants within organisations, management accounting processes and techniques, planning and control, Important considerations in the design of management accounting systems,. | Advanced Management Accounting Chapter 1: An Introduction of Management Accounting References: Management Accounting 6th Edition, Robert S. Kaplan Cost Accounting : The Managerial Emphasis 14th Edition By Horngren Managerial Accounting 14th Edition By Garrison Introduction to Management Accounting Management accounting is the process of supplying the managers and employees in an organization with relevant information, both financial and nonfinancial, for making decisions, allocating resources, and monitoring, evaluating, and rewarding performance. Major Differences Between Financial & Management Accounting Management Accounting Financial Accounting Purpose Decision making Communicate financial position to outsiders Primary Users Internal managers External users Focus/Emphasis Future-oriented Past-oriented Rules Do not have to follow GAAP; cost vs. benefit GAAP compliant; CPA audited Time Span Ultra current to very long time horizons Historical monthly, quarterly reports Behavioral Issues Designed to influence employee behavior Indirect effects on employee behavior 3 Organizational structure and the roles and skills required of management accountants within the organization Organizational Structure 5 Management Accountants Often part of cross-functional teams Report to various vice-presidents of operations Role is to analyze financial impact of business decisions Internal consultants 6 Roles of Management Accountants Ensuring accurate financial records Helping to design information systems Recording non-routine transactions Making adjustments to financial records Planning, analyzing, and interpreting accounting data Providing decision support 7 Required Skills Knowledge of financial and managerial accounting Analytical skills Knowledge of how a business functions Ability to work on a team Oral and written communications skills Strategy & Management Accounting Strategy – specifies how an organization matches its own capabilities with the opportunities in the | Advanced Management Accounting Chapter 1: An Introduction of Management Accounting References: Management Accounting 6th Edition, Robert S. Kaplan Cost Accounting : The Managerial Emphasis 14th Edition By Horngren Managerial Accounting 14th Edition By Garrison Introduction to Management Accounting Management accounting is the process of supplying the managers and employees in an organization with relevant information, both financial and nonfinancial, for making decisions, allocating resources, and monitoring, evaluating, and rewarding performance. Major Differences Between Financial & Management Accounting Management Accounting Financial Accounting Purpose Decision making Communicate financial position to outsiders Primary Users Internal managers External users Focus/Emphasis Future-oriented Past-oriented Rules Do not have to follow GAAP; cost vs. benefit GAAP compliant; CPA audited Time Span Ultra current to very long time horizons Historical monthly, quarterly reports .
