Tuesday, September 4, 2012

MANAGERIAL AND FINANCIAL ACCOUNTING (brief notes)


Notes: Introduction to Managerial Accounting (2007) (video). 
http://www.youtube.com/watch?v=pBCRmjnwWgo 

Definition: a field of accounting that provides economic and financial information for managers and other internal user.
Management Functions: Planning, Directing, and Controlling.
Managerial Cost Concepts: Direct Material, Direct Labor, and Manufacturing Overhead.
Cost: Product Costs (manufacturing cost): Direct Material, Direct Labor, and Manufacturing                Overhead (Indirect material, indirect labor, and other indirect costs).
           Period Costs (nonmanufacturing costs): Selling expenses and Administrative expenses.
            Value Chain: analysis looks at every step a business goes through, from raw materials to the eventual end user, the goal is to deliver maximum value for the least possible total cost. (Investopedia US, 2012)
            Just in time inventory: to have the supplies a firm needs at the exact moment that they are needed. (Reduce waste and enhance value). (Broyles, Beims, Franko, & Bergman, 2005).
            Enterprise resources planning: a process by which a company manages and integrates the important parts of its business (planning, purchasing, inventory, sales, marketing, finance, HR, etc). (Investopedia US, 2012).
            Theory of Constraints: is a management philosophy that focuses the resources of an organization in improving the performance of the constraint that directly affects profit or loss (Rockford Consulting Group, Ltd, 1999).
ABC: is a costing method that is designed to provide managers with cost information for strategic  and other decisions that potentially affect capacity and therefore fixed cost, is used to determine product costs for special management reports (Accounting for Management, 2012).

References

Accounting for Management. (2012). accounting4management.com. Retrieved from http://www.accounting4management.com/definition_explanation_activity_based_costing.htm
Broyles, D., Beims, J., Franko, J., & Bergman, M. (2005, April). academicmind.com. Retrieved from Just-in-time inventory management strategy & lean manufacturing: http://academicmind.com/unpublishedpapers/business/operationsmanagement/2005-04-000aaf-just-in-time-inventory-management.html
Introduction to Managerial Accounting (2007). [Motion Picture].
Investopedia US. (2012). Investopedia. Retrieved from Value Chain: http://www.investopedia.com/terms/v/valuechain.asp
Rockford Consulting Group, Ltd. (1999). rockfordconsulting.com. Retrieved from Theory of Constraints: http://rockfordconsulting.com/toc.htm

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