New User Special Price Expires in

Let's log you in.

Sign in with Facebook


Don't have a StudySoup account? Create one here!


Create a StudySoup account

Be part of our community, it's free to join!

Sign up with Facebook


Create your account
By creating an account you agree to StudySoup's terms and conditions and privacy policy

Already have a StudySoup account? Login here

MGMT 201: Chapter 1 Notes

by: Zach Weinkauf

MGMT 201: Chapter 1 Notes MGMT 201

Marketplace > Purdue University > Business, management > MGMT 201 > MGMT 201 Chapter 1 Notes
Zach Weinkauf

Preview These Notes for FREE

Get a free preview of these Notes, just enter your email below.

Unlock Preview
Unlock Preview

Preview these materials now for free

Why put in your email? Get access to more of this material and other relevant free materials for your school

View Preview

About this Document

Notes from Chapter 1: Probable Exam Material in Red.
Managerial accounting
David Scott
Class Notes
25 ?




Popular in Managerial accounting

Popular in Business, management

This 3 page Class Notes was uploaded by Zach Weinkauf on Friday January 22, 2016. The Class Notes belongs to MGMT 201 at Purdue University taught by David Scott in Spring 2016. Since its upload, it has received 142 views. For similar materials see Managerial accounting in Business, management at Purdue University.


Reviews for MGMT 201: Chapter 1 Notes


Report this Material


What is Karma?


Karma is the currency of StudySoup.

You can buy or earn more Karma at anytime and redeem it for class notes, study guides, flashcards, and more!

Date Created: 01/22/16
Lecture 1: January 12, 2016 Chapter 1 – The Changing Role of Managerial Accounting in a Dynamic Business Environment What is Managerial Accounting?  Managerial Accounting is the process of: ∆ Identifying ∆ Measuring ∆ Analyzing ∆ Interpreting ∆ Communicating Is Managerial Accounting Just For Accountants?  No – you are already a manager of your everyday life. ∆ Managerial Accounting is an integral part of the management process and managerial accountants are important strategic partners in an organization’s management team. What do Managers do Every Day?  The day-to-day work of a manager centers around 4 basic activities: ∆ Planning  Setting goals and objectives for the company and determine how to achieve them.  Ex. – all companies want to generate more sales. One strategy to achieve this goal is to open more stores. So management may plan to build and begin operating 25 new stores next year.  Managerial accounting translates these plans into budgets – the quantitative expression of a plan. Management analyzes the budgets before proceeding to determine whether its expansion plans make financial sense. ∆ Directing  Overseeing the company’s day-to-day operations  Management uses product cost reports, product sales info, and other managerial accounting reports to run daily business operations.  Companies use product sales data to determine which items are generating the most sales and then uses that info to adjust product lines, production and marketing strategies. ∆ Controlling  Evaluating the results of business operations against the business plan and making adjustments to keep the company pressing towards its goals.  Companies use performance reports to compare each segment’s actual performance against the budget and then uses that feedback to take corrective actions if needed.  If actual costs are higher than planned, or actual sales are lower than planned, then management may revise its plans or adjust operations.  Ex. – perhaps newly opened stores are not generating as much income as budgeted. As a result, management may decide to increase local advertising to increase sales. ∆ Decision Making  Management is continually making decisions while it plans, directs, and controls operations. For example:  Price Setting  Product Offerings  Renovation of Facilities Does Managerial Accounting Add Value to a Company? – YES!  Provides info for decision making and planning  Assists managers in directing and controlling activities  Motivates managers and other employees towards organization’s goals  Measures performance of subunits, activities, managers, and other employees  Assesses the organization’s competitive position Managerial vs Financial Accounting  Accounting System – accumulates financial and managerial accounting data ∆ Managerial Accounting – planning, directing, controlling, and decision making  Internal Users ∆ Financial Accounting – published financial statements and other financial reports  External Users Managerial Financial Users of Info - Managers, within the organization - Interested Parties, outside organization Regulated - Not required and unregulated - Required – GAAP. Regulated by FASB & SEC Source of Data - Organization’s basic accounting system, - Almost exclusively drawn from the organization’s plus various other sources, such as basic accounting system, which accumulates such as physical quantities of material financial information and labor used in production Nature of Reports - Reports often focus on subunits within - Reports focus on the enterprise in its entirety. and Procedures Based on historic data and future Based almost exclusively on historical transaction predictions. Data. Examples of Senior Managerial Accountants within the Organization  CFO and/or Controller  Treasurer  Internal Auditor Managerial Accounting vs Cost Accounting  Managerial accounting is the broad task of preparing info for planning, directing, controlling, and decision making within the context of an organization’s operations  The cost accounting system is used to accumulate cost info, and is one part of the overall accounting system.


Buy Material

Are you sure you want to buy this material for

25 Karma

Buy Material

BOOM! Enjoy Your Free Notes!

We've added these Notes to your profile, click here to view them now.


You're already Subscribed!

Looks like you've already subscribed to StudySoup, you won't need to purchase another subscription to get this material. To access this material simply click 'View Full Document'

Why people love StudySoup

Bentley McCaw University of Florida

"I was shooting for a perfect 4.0 GPA this semester. Having StudySoup as a study aid was critical to helping me achieve my goal...and I nailed it!"

Amaris Trozzo George Washington University

"I made $350 in just two days after posting my first study guide."

Jim McGreen Ohio University

"Knowing I can count on the Elite Notetaker in my class allows me to focus on what the professor is saying instead of just scribbling notes the whole time and falling behind."


"Their 'Elite Notetakers' are making over $1,200/month in sales by creating high quality content that helps their classmates in a time of need."

Become an Elite Notetaker and start selling your notes online!

Refund Policy


All subscriptions to StudySoup are paid in full at the time of subscribing. To change your credit card information or to cancel your subscription, go to "Edit Settings". All credit card information will be available there. If you should decide to cancel your subscription, it will continue to be valid until the next payment period, as all payments for the current period were made in advance. For special circumstances, please email


StudySoup has more than 1 million course-specific study resources to help students study smarter. If you’re having trouble finding what you’re looking for, our customer support team can help you find what you need! Feel free to contact them here:

Recurring Subscriptions: If you have canceled your recurring subscription on the day of renewal and have not downloaded any documents, you may request a refund by submitting an email to

Satisfaction Guarantee: If you’re not satisfied with your subscription, you can contact us for further help. Contact must be made within 3 business days of your subscription purchase and your refund request will be subject for review.

Please Note: Refunds can never be provided more than 30 days after the initial purchase date regardless of your activity on the site.