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Chapter 1 - Introduction: The Role, History, and Direction of Management Accounting 2

This chapter introduces management accounting, covering its role, history, focus areas and how it differs from financial accounting. It discusses how management accounting supports various management processes and organizational types. Key areas covered include activity-based management, customer orientation, quality management, and the role of e-business. The chapter also outlines ethical standards and professional certifications for management accountants. It introduces the structure of management accounting systems and concepts like cost assignment, tracing, allocation and different costing methods for various management and financial reporting purposes.

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Meer Jan
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34 views

Chapter 1 - Introduction: The Role, History, and Direction of Management Accounting 2

This chapter introduces management accounting, covering its role, history, focus areas and how it differs from financial accounting. It discusses how management accounting supports various management processes and organizational types. Key areas covered include activity-based management, customer orientation, quality management, and the role of e-business. The chapter also outlines ethical standards and professional certifications for management accountants. It introduces the structure of management accounting systems and concepts like cost assignment, tracing, allocation and different costing methods for various management and financial reporting purposes.

Uploaded by

Meer Jan
Copyright
© © All Rights Reserved
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Chapter 1 Introduction:

The Role, History, and Direction


of Management Accounting 2
Management Accounting Information
System 4
Information Needs of Managers
and Other Users 4 The Management
Process 5 Organization Type 7

Management Accounting and Financial


Accounting 7
A Brief Historical Perspective of
Management Accounting 9
Current Focus of Management
Accounting 10
Activity-Based Management 10 Customer
Orientation 11 Cross-Functional
Perspective 13 Total Quality Management
13 Time as a Competitive Element 14
Efficiency 14 E-business 15

The Role of the Management Accountant 15


Structure of the Company 15 SarbanesOxley Act of 2002 16

Management Accounting and Ethical


Conduct 17
Ethical Behavior 17 Company Codes
of Conduct and SOX 18 Standards of
Ethical Conduct for Management
Accountants 19

Certification 21

The CMA 21 The CPA 21 The CIA 22

Summary of Learning Objectives 22


Key Terms 23
Questions for Writing and Discussion 23
Exercises 24
Problems 28
Research Assignment 31

Chapter 2 Basic Management


Accounting Concepts 32

Cost Assignment: Direct Tracing, Driver


Tracing, and Allocation 34
Cost 35 Cost Objects 35 Accuracy of
Assignments 36

Product and Service Costs 39

Different Costs for Different Purposes 41


Product Costs and External Financial
Reporting 42

External Financial Statements 44

Income Statement: Manufacturing


Firm 44 Income Statement: Service
Organization 46

Types of Management Accounting Systems:


A Brief Overview 46
FBM versus ABM Accounting Systems 47
Choice of a Management Accounting
System 50

Summary of Learning Objectives 51


Key Terms 51
Review Problems 52
Questions for Writing and Discussion 54
Exercises 55
Problems 61
Managerial Decision Cases 66
Research Assignments

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