Chapter 14 - Managerial accounting concepts and principles. After you have read this chapter you should be able to: Explain the purpose and nature of, and the role of ethics in, managerial accounting, describe accounting concepts useful in classifying costs, define product and period costs and explain how they impact financial statements, explain how balance sheets and income statements for manufacturing and merchandising companies differ, explain manufacturing activities and the flow of manufacturing costs, describe trends in managerial accounting,. | Financial and Managerial Accounting Wild, Shaw, and Chiappetta Fourth Edition McGraw-Hill/Irwin Copyright © 2011 by The McGraw-Hill Companies, Inc. All rights reserved. Chapter 14 Managerial Accounting Concepts and Principles Conceptual Learning Objectives C1: Explain the purpose and nature of managerial accounting and the role of ethics. C2: Describe accounting concepts useful in classifying costs. C3: Define product and period costs and explain how they impact financial statements. C4: Explain how the balance sheets and income statements for manufacturing and merchandising companies differ. C5: Explain manufacturing activities and the flow of manufacturing costs. C6: Identify trends in managerial accounting. 14- A1: Compute cycle time and cycle efficiency, and explain their importance to production management. Analytical Learning Objectives 14- P1: Compute cost of goods sold for a manufacturer. P2: Prepare a manufacturing statement and explain its purpose and links to financial statements. Procedural Learning Objectives 14- Managerial accounting provides financial and non-financial information for managers of an organization and other decision makers Financial accounting provides general purpose financial information to those who are outside the organization. Managerial and Financial Accounting C 1 14- Nature of Managerial Accounting C 1 14- Behavior Traceability Controllability Relevance Function Managerial Cost Concepts C2 14- Cost behavior means how a cost will react to changes in the level of business activity. Classification by Behavior C 2 A fixed cost does not change with changes in the volume of activity A variable cost changes in proportion to changes in the volume of activity A mixed cost refers to a combination of fixed and variable 14- Direct costs Costs traceable to a single cost object. Examples: material and labor cost for a product. Indirect costs Costs that cannot be traced to a single cost object. Example: . | Financial and Managerial Accounting Wild, Shaw, and Chiappetta Fourth Edition McGraw-Hill/Irwin Copyright © 2011 by The McGraw-Hill Companies, Inc. All rights reserved. Chapter 14 Managerial Accounting Concepts and Principles Conceptual Learning Objectives C1: Explain the purpose and nature of managerial accounting and the role of ethics. C2: Describe accounting concepts useful in classifying costs. C3: Define product and period costs and explain how they impact financial statements. C4: Explain how the balance sheets and income statements for manufacturing and merchandising companies differ. C5: Explain manufacturing activities and the flow of manufacturing costs. C6: Identify trends in managerial accounting. 14- A1: Compute cycle time and cycle efficiency, and explain their importance to production management. Analytical Learning Objectives 14- P1: Compute cost of goods sold for a manufacturer. P2: Prepare a manufacturing statement and explain its purpose and links to .
