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    Managerial Accounting

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    Aries Tibar
    Managerial accounting provides information to managers within an organization, while financial accounting reports information externally. Managerial accounting helps managers with planning, controlling, and decision making. It establishes goals and budgets, gathers feedback to ensure plans are executed properly, and aids in selecting courses of action from alternatives. Examples show how managerial accounting assists with campus recruiting planning, controlling through performance reports, and decision making. Managerial accounting is important for business careers as it provides critical information for managing organizations.

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    Managerial Accounting

    Uploaded by

    Aries Tibar
    235 views13 pages
    Managerial accounting provides information to managers within an organization, while financial accounting reports information externally. Managerial accounting helps managers with planning, controlling, and decision making. It establishes goals and budgets, gathers feedback to ensure plans are executed properly, and aids in selecting courses of action from alternatives. Examples show how managerial accounting assists with campus recruiting planning, controlling through performance reports, and decision making. Managerial accounting is important for business careers as it provides critical information for managing organizations.

    Original Title

    MANAGERIAL ACCOUNTING

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    Managerial accounting provides information to managers within an organization, while financial accounting reports information externally. Managerial accounting helps managers with planning, controlling, and decision making. It establishes goals and budgets, gathers feedback to ensure plans are executed properly, and aids in selecting courses of action from alternatives. Examples show how managerial accounting assists with campus recruiting planning, controlling through performance reports, and decision making. Managerial accounting is important for business careers as it provides critical information for managing organizations.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    235 views13 pages

    Managerial Accounting

    Uploaded by

    Aries Tibar
    Managerial accounting provides information to managers within an organization, while financial accounting reports information externally. Managerial accounting helps managers with planning, controlling, and decision making. It establishes goals and budgets, gathers feedback to ensure plans are executed properly, and aids in selecting courses of action from alternatives. Examples show how managerial accounting assists with campus recruiting planning, controlling through performance reports, and decision making. Managerial accounting is important for business careers as it provides critical information for managing organizations.

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    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    of 13

    MANAGERIAL

    ACCOUNTING
    FINACIAL ACCOUNTING

    is concerned with reporting financial


    information to external parties, such as
    stockholders, creditors, and regulators.

    MANAGERIAL ACCOUNTING
    is concerned with providing information
    to managers for use
    within the organization.
    2
    KEY
    DIFFERENCES

    3
    SEGMENT
     A segment is a part or activity of an organization about
    which managers would like cost, revenue, or profit data.
    Examples of business segments include product lines,
    customer groups (segmented by age, ethnicity, gender,
    volume of purchases, etc.), geographic territories,
    divisions, plants, and departments.
     Finally, financial accounting is mandatory for external
    reports and it needs to comply with rules, such as
    generally accepted accounting principles (GAAP) and
    international financial reporting standards (IFRS),
    whereas managerial accounting is not mandatory and it
    does not need to comply with externally imposed rules.

    4
    Managerial accounting helps managers perform three
    vital activities— planning, controlling, and decision making.

    Planning involves establishing


    goals and specifying how to achieve them.

    Controlling involves gathering feedback


    to ensure that the plan is being properly executed or modified
    as circumstances change.

    Decision making involves selecting a course of action from


    competing alternatives. Now
    let’s take a closer look at these three pillars of managerial
    accounting.
    5
    PLANNING: Assume that you work for Procter & Gamble (P&G)
    and that you are in charge of
    the company’s campus recruiting for all undergraduate business
    majors.

    GOAL: to recruit the “best and


    brightest” college graduates.

    6
    o How many students do we need to hire in total and from each
    major?
    o What schools do we plan to include in our recruiting efforts?
    o Which of our employees will be involved in each school’s recruiting
    activities?
    o When will we conduct our interviews?
    o How will we compare students to one another to decide who will be
    extended job offers?
    o What salary will we offer our new hires? Will the salaries differ by
    major?
    o How much money can we spend on our recruiting efforts? 7
    Plans are often accompanied by a budget.

    A budget is a detailed plan for


    the future that is usually
    expressed in formal quantitative
    terms

    8
    CONTROLLING
    This process would involve gathering, evaluating, and
    responding to feedback to ensure that this year’s recruiting
    process meets expectations.

    It would also include evaluating the feedback in search of


    ways to run a more effective
    recruiting campaign next year.
    9
     Did we succeed in hiring the planned number of students
    within each major and at each school?
     Did we lose too many exceptional candidates to competitors?
     Did each of our employees involved in the recruiting process
    perform satisfactorily?
     Is our method of comparing students to one another working?
     Did the on-campus and office interviews run smoothly?
     Did we stay within our budget in terms of total salary
    commitments to new hires?
     Did we stay within our budget regarding spending on
    recruiting activities?
    PERFORMANCE REPORT

    A “performance report” compares


    budgeted data to actual data in an effort to
    identify and learn from excellent
    performance and to identify and eliminate
    sources of unsatisfactory performance.

    Performance reports can also be used as


    one of many inputs to help evaluate and
    reward employees. 11
    DECISION MAKING
    Most basic MANAGERIAL SKILL is the ability to
    make intelligent, data-driven decisions.

    12
    Why Does Managerial Accounting
    Matter to Your Career?

    Business
    Majors

    13

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