ACC242 Chapter 1
Institute of Management Accountants (IMA)
- Professional association for management accountants in the United States - Mission: provide a forum for research, practice development, education, knowledge sharing, and advocacy of the highest ethical and best practices in management accounting and finance - Issues the Certified Management Accountant (CMA) certification
What is managerial accounting?
- partnering in management decision making - devising planning and performance management systems - providing expertise in financial reporting and control
Management conducts variance analysis of comparing budgeted numbers to actual results.
Controlling
Management determines whether the company's various sales locations are operating according to plan.
Controlling
Management uses feedback to take corrective actions on their planned budgets.
Controlling
Management reviews hourly sales reports to determine the level of staffing needed to service customers.
Directing
Managers review actual sales data to determine the best sellers and targets those products in an advertising campaign.
Directing
Controlling
Evaluating results against plan and making adjustments to try to achieve company goals
Information is verified by external auditors.
Financial Accounting
Main characteristic of data is that it must be reliable and objective.
Financial Accounting
Most managerial accounting reports focus of the ___________, providing ___________ information in order to help managers make profitable business decisions.
Future, Relevant
Does financial accounting or managerial accounting focus more on the future?
Managerial Accounting
Main characteristic of data is that it must be relevant.
Managerial Accounting
What is the main difference between financial accounting and managerial accounting?
Managerial accounting emphasizes data relevance over data objectivity
Directing
Overseeing day-to-day operations (e.g.analyze what's going on to determine how to poceed
Lean Thinking
Philosophy and business strategy of operating without waste
Budgets are a quantitative representation of the _______ function of management.
Planning
Management analyzes whether to keep production in the current country or move production to Mexico.
Planning
Management decides to increase sales growth by 10% next year.
Planning
CMA Requirements
Rigorous two-part exam Part 1: Financial Reporting, Planning, Performance and Control Part 2: Financial Decision Making Two years of work experience Continuing professional education Baccalaureate degree CMAs earn 61% higher salaries than non-CMA peers
Planning
Setting goals and objectives and determining how to achieve them
