Managerial accounting chapter 1

users of managerial accounting users of financial accounting

internal-managers external-creditors, stockholders, govt regulators

to move toward sustainability companies are

introducing "green initiatives"-ways of doing business that have fewer negative consequences on the earth's resources.

impact on employee behavior in managerial accounting financial

management carefully considers behavioral implications concern is about adequacy of disclosure; behavioral implications are secondary.

what must be included in the report and how it must be formatted managerial financial

management determines what it wants in the report and how it wants it formatted GAAP determines

Ethical behavior

means doing the right thing, regardless of the consequences.

Managerial accounting

provides information that helps managers fulfill their three primary responsibilities: planning, directing, and controlling operations. Integrated throughout all of these responsibilities is decision making.

Managerial accounting emphasizes ________ information that can be used to make business decisions that will positively impact the ________ operations of the company.

relevant future

info characteristic is emphasized managerial financial

relevant reliable and objective

reporting unit of managerial accounting financial accounting

segments/divisions the company as a whole

Sustainability, as defined by the United Nations, is

the ability to meet the needs of the present without compromising the ability of future generations to meet their own needs.

how often reports are generated managerial financial

depends on management needs annually and quarterly

underlying basis managerial financial

future historical

purpose of the info for managerial financial

help managers direct, plan and control business operations and decisions help external users make investing & lending decisions

The Three Pillars of Sustainability

-social -environmental -economic

Unethical behavior includes:

Dishonesty. Unfairness. Lack of objectivity. Irresponsibility.

Controlling

Evaluating the results of business operations against the plan and making adjustments to keep the company moving towards its goals

Directing

Overseeing the company's day-to-day operations

The triple bottom line recognizes that a company's performance should be viewed in terms of the following three items:

Profits (economic). People (social). Planet (environmental).

Planning

Setting goals and objectives for the company and determining how to achieve them.

Not all unethical behavior is illegal, but

all illegal behavior is unethical.

primary accounting product managerial financial

any internal accounting report deemed worthwhile by management financial statements

is the info required by an outside group/agency managerial financial

no authoritative body requires it SEC

verification of information in managerial accounting financial

no formal audit. The company's internal audit team may review independent certified public accountants audit the annual financial statements