The Changing Role of Managerial Accounting in a Dynamic...

CHAPTER 1 THE CHANGING ROLE OF MANAGERIAL ACCOUNTING IN A DYNAMIC BUSINESS ENVIRONMENT Learning Objectives 1. Define managerial accounting and describe its role in the management process. 2. Explain four fundamental management processes that help organizations attain their goals. 3. List and describe five objectives of managerial accounting activity. 4. Explain the major differences between managerial and financial accounting. 5. Explain where managerial accountants are located in an organization, in terms of formal organization, deployment in cross-functional teams, and physical location. 6. Describe the roles of an organizations chief financial officer (CFO) or controller, treasurer, and internal auditor. 7.†¦show more content†¦Ã¢Å¾ ¢ Decision making—the process of choosing among available alternatives âž ¢ Planning—developing a detailed financial and operational description of anticipated operations âž ¢ Directing operational activities—running the organization on a day-to-day basis âž ¢ Controlling—ensuring that the organization operates in the intended manner to achieve its goals 2. HOW MANAGERIAL ACCOUNTING ADDS VALUE Provides managers with information (e.g., product costs, budgets, cash flows). The information includes financial and nonfinancial data to help managers with strategic planning and decision making. Assists in directing and controlling (analyzing and comparing actual performance to budgeted plans; attention-directing to highlight successful or problem areas). Motivates managers to achieve the organizations goals by communicating the plans, providing a measurement of how well the plan was achieved, and prompting an explanation of deviations from plans. âž ¢ Motivation is achieved, in part, through employee empowerment—the concept of encouraging and authorizing workers to improve operations, reduce costs, and improve product quality and customer service. 1. Measures performance not only for the entire organization, as in financial accounting, but also for many subunits (divisions, departments, managers). †¢Show MoreRelatedChapter01.the Changing Role of Managerial Accounting in a Dynamic Business Environment4441 Words   |  18 Pagesabout managerial accountants is false? A. Managerial accountants more and more are considered business partners. B. Managerial accountants often are part of cross-functional teams. C. An increasing number of organizations are segregating managerial accountants in separate managerial-accounting departments. D. 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