ACCT 226 , Week 1 Notes
ACCT 226 , Week 1 Notes ACCT 226 - 001
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ACCT 226 - 001
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This 3 page Class Notes was uploaded by Megan Ambrose on Friday January 15, 2016. The Class Notes belongs to ACCT 226 - 001 at University of South Carolina taught by Debbie Huguley Brumbaugh (P) in Fall 2015. Since its upload, it has received 281 views. For similar materials see Introduction to Managerial Accounting in Accounting at University of South Carolina.
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Date Created: 01/15/16
Accounting 226 Professor Brumbaugh Week One 1/11 – 1/15 Financial vs. Managerial Accounting • Financial: External Managerial: Internal vs. • Financial: Historical vs. Managerial: Future • Financial: Objective, Verifiable vs. Managerial: Relevant • Financial: Precise vs. Managerial: Timely • Financial: Company Wide vs. Managerial: Segments • Financial: Rules/Standards vs. Managerial: No Rules • Financial: Mandatory vs. Managerial: Not Mandatory 3 Pillars of Management These pillars can be used in all careers, not just accounting 1. Planning: determining goal involved in idea you have, then determining the steps needed to a achieve that goal 2. Controlling : taking a look at previous projects and determining what went well that could be used again in future projects and what went wrong and how that can be fixed in the future 3. Decision-‐Making: Choosing between several options using the data presented by all parties Certified Management Accountant (CMA) • A management accountant who has the necessary qualifications and who passes a rigorous professional exam earns the right to be known as a CMA 6 Components of a Successful Manager 1. Ethical Standards a. Established credibility b. Guideline: competence, confidentiality, integrity and credibility c. Essential for smooth functioning d. Abandoning ethics would negatively impact economy e. Institute of Management Acts (IMA) has a statement of Ethical Behavior Practice 2. Strategy a. Strategy = game plan that enables a company to attract customers by distinguishing itself from competitors b. Focal point in strategy is attracting customers c. First part of any strategy is determining what your focus is d. Customer Intimacy Strategy: responds to customer needs e. Operational Excellence strategy: deliver fast, convenient products Accounting 226 Professor Brumbaugh Week One 1/11 – 1/15 f. Product Leadership Strategy: offer higher quality products for a higher price 3. Risk a. Risk Management = process used by a company to proactively identify and manage risk b. Reduce risks by implementing controls EX) Risk: Someone steals computer data Control: Set up firewalls Risk: Products are harming customers Control: Develop a new testing program 4. Social Responsibility a. Corporate Social Responsibility (CSR) = concept whereby organizations consider the needs of all stakeholders when making decisions b. Stakeholders = anyone who is affected by the company; customers, employees, suppliers, communities, environment, stockholders etc. c. Extends beyond legal compliance to include voluntary actions that satisfy stakeholder expectations d. EX) In order to build the new business building USC had to cut down a lot of trees. In order to be responsible to the environment and to prevent delays in construction due to protests USC brought in local environmental groups to discuss the issue and come to a compromise 5. Process Management a. Business Process = series of steps that are followed in order to carry out some task in business b. All departments need to be involved in order to produce a product c. Value Chain = Research & Design à Design à Manufacturing à Marketing à Distribution à Customer Service d. Lean production = Just-‐in-‐Time (JIT) products that are made to order to prevent costs associated with inventory e. To engage in lean production a company needs to ensure that all components needed to make product are present 6. Leadership Perspective a. Unite behavior of employees around 2 common themes: pursuing strategic goals and making optimal b. Factors that influence behavior: Motivation (intrinsic) , Incentive (Extrinsic) and Cognitive Bias Accounting 226 Professor Brumbaugh Week One 1/11 – 1/15 c. All departments need to be included in the decision making process for it to be a success because each department brings a unique perspective and it will prevent any protests down the road that might delay implementing decisions
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