Welcome!

Managerial accounting.
Managerial Accounting and the Business Enviromnent

M.A. Luz Mara Chvez Alcntar (lmchavez@itesm.mx)

My Background
Sep 06- May 08, Tecnolgico de Monterrey, Campus Quertaro, Master in Business Administration, 2008 Jan 01 Dec 05, Tecnolgico de Monterrey Campus Quertaro, B.A. Finance and Acconting Grupo KUO: Treasury and Financing Specialist. Tecnolgico de Monterrey: Consultant in the business incubator. MAN Truck and Bus Mxico: Cost and financial analyst. Kellogg de Mxico: Financial Professional Sika Mexicana: Financial Planning.

Methodology
Check the activities that correspond to each session before, during and after it. Our course will involve three different work scenarios: Interactive Teaching: active participation, solving exercises and clarification of doubts. Autonomous learning: previous reading, selfassesment. Collaborative learning: working teams

Code of ethics and class policies

PUNCTUALITY: Access to the classroom will be only during the first 5 minutes of class time. Once started the class, the door will be closed ASSISTANCE: Remember that by regulation, there is a limit of 4 absences if your grade average is less than 83 during the semester TEST TOPICS. Any material covered in class or for homework is a topic for tests

 CLASS REPLACEMENT: It will have to replace the classes not given, according to available time for students and teacher. DELIVERY OF HOMEWORK. It is YOUR RESPONSIBILITY to deliver on time each of the homework assigned. Each has a deadline. If it is not delivered within the corresponding period, it will be not be received by email or printed (no exceptions under any condition).

 Remember that homework must meet certain requirements, such as: Present no misspellings. The fist page must include the homework title, name, student number, teachers name, subject name and date of delivery. It is important that you mention and reference all the bibliographical sources used to perform your homework

 QUICK QUIZZES AND HOMEWORKS. The copy in exams and assignments is penalized. AD (Academic Dishonesty) copy of homework is also penalized with 1 / 100 of grade in the homework PASSING GRADE. The minimum passing grade for partial and final test is 70.00 (seventy out of a hundred). CELL PHONES AND NEXTEL. It is not allowed to enter the classroom with cell phones on. The fact that any cell phone or nextel ring during class hours will be penalized

Official Analytical Program of Management Accounting

Cost classification and cost segmentation. Financial Planning (Master Budget). The Cost Volume Profit Model Costing Systems Marginal Analysis and short term decision making. Introduction to Control Management

Course Evaluation
Partial Grades: Individual Homework Team Homework Tests Total Final Grades: Partial Grades (3): Final Test: Total: 15% 15% 70% 100%

75% 25% 100%

Course Objective
To the end course the student must be able to use:
Marketing Economics Concepts With Managerial Accounting Concepts and techniques for planning and decision making

Operation

Bibliography:
Garrison, Ray and Noreen, Eric, Managerial Accounting, Last edition, Ed. McGraw-Hill

Managerial Accounting and the Business Enviromnent

All types of organizations

have a need for accounting information

What is accounting?
Is the process of: Measure (in $) Register Classify Summarize Report

events and transactions of a financial nature communicate this information to its users to facilitate decision making

A Contemporary View of Accounting Information.

Accounting Information
Traditional Financial Accounting Information

Nonfinancial Information

Financial Information * Assets * Liabilities * Revenues * Gross margin * Operating expenses

Other Quantitive Information * Percentage of defects. * Number of customer complaints. *Warranty claims. * Unit in inventory * Budgeted hours.

Qualitative Information * Customer satisfaction. * Employee satisfaction. * Product or service quality.. * Reputation

A comparison of Financial and Managerial Accounting

* Creditors * Investors * External users

Financial accounting

Preparation and use of financial statements

Managerial accounting

Generating financial and non financial information

* Internal users

Users

External Users Internal Users

Stockholders Potential investors Creditors Goverment taxing agencies , Regulators Suppliers Customers And others outside the company

Individual employees Teams Departments Regions Top Management Others inside the company (managers)

External users
External users of financial information, such as banks or potential donors to nonprofit organizations, still need accounting information to make the proper decision about lending or donating money.

Potential contributors to nonprofit organizations may have a need for both financial information, such as how much of the Red Cross budget is spent for charitable purposes, and nonfinancial information, such as how many woman with children are served by the local homeless shelter

Suppliers and customers are also external users

Suppliers of car parts to Need detailed information on inventory levels of specific parts When to manufacture

In order to know

Ship parts

Internal users: Planning Activities

Short-term (operational) Planning involves The development of Long-term (strategic) The identification of the resourses needed to achieve them

Objectives and goals of an organization

Operational planning involves

Development of short-term objectives and goals

Those to be achieved in less than one year

Examples of operational planning

Include planning the raw material and production needs for each type of ice cream for the next four quarters Determining the companys short-term cash needs.

Strategy

A strategy is a game plan that enables a company to attract customers by distinguishing itself from competitors.
The focal point of a companys strategy should be its target customers.

Strategic planning
Addresses long-term questions of how an organization positions and distinguishes itself from competitors.

Ben & Jerrys strategy for producing high-quality ice cream Is very different

From that used by a company producing a store brand of lower-priced ice cream

Operating Activities

The day-to-day operation of a business

Controlling activities

The motivation and monitoring of employees and the evaluation of people and other resources used in the operations of the organization

The Functional Areas of Management

Operations and Produces the products or services that an organization sells to its customers. production function Marketing function Finance function Human resource function Involved with the process of developing, pricing, promoting, and distributing goods and services sold to customers. Responsible for managing the financial resources of the organization. Concerned with the utilization of human resources to help an organization reach its goals

External and internal users of accounting information

Users External Shareholders and creditors Type of Accounting Information Needed Sales, gross profit, net income, cash flow, assets and liabilities, earnings per share, etc. Although this information is primarly financial, it may also include nonfinancial information (units in inventory). This information is often provided in summary form (for the company as a whole) and typically is historical in nature. Source Annual reports, financial statements, and other available documents.

External and internal users of accounting information

Users External Government agencies Type of Accounting Information Needed Source Varies by agency but includes Tax returns and taxable income, sales, assets, other reports comparisons of actual expenditures to budgets, etc. This information is usually provides for the company as a whole and is historical in nature. It can include both financial and nonfinancial information.

External and internal users of accounting information

Users External Type of Accounting Information Needed Source Limited-access databases available to specific customers and suppliers. Customers and Order status, shipping dates, suppliers inventory levels, etc. This information must be very detailed and timely to be useful.

Users Internal Marketing, operations and production, finance, and human resource managers.

Type of Accounting Information Needed Timely and detailed information on sales and expenses, product costs, budget information, and measures of performance. Often includes nonfinancial data (direct labor hours, units to break even, etc.). Accounting information is often n eeded for segments of an organization and is more likely future oriented than historical

Source Cost reports, budgets, and other internal documents.

External and internal users of accounting information

Managerial Accounting vs Financial Accounting

Recording and reporting information: Managerial Accounting: helpful, buy not mandatory. Financial Accounting: required and provided on a regular basis.

Managerial Accounting vs Financial Accounting

Standards of reporting and data format: Managerial Accounting: any way that managers find it useful, without restrictions. Financial Accounting: subject to principles in his presentations (Generally Accepted Accounting Principles).

Managerial Accounting vs Financial Accounting

Type of information presented: Managerial Accounting: recent actual data and estimated future data. Financial Accounting: historical data.

Managerial Accounting vs Financial Accounting

Approach information: Managerial Accounting: segment information. Financial Accounting: information of the organization as a whole.

Managerial Accounting vs Financial Accounting

Information providers: Managerial Accounting: managerial accountants, engineers, economists, sales and marketing specialists, etc.

Financial Accounting: financial accountants and auditors

Managerial Accounting vs Financial Accounting

Similarities: Both are based on the same information system. Both issued reports on the activities of the organization concerning in a given period of time.

Objectives of Managerial Accounting

Facilitate the operational planning Facilitate the follow up of the plans that are being implemented. Give the necessary data for the operational control. Give the necessary data for decision making

Homework # 1
Homework No. : Delivery format: Delivery date: Estimated time: 1 Individual August 11, 2011 1.5 hours

Objective: To know the main ideas and concepts on the topic that we will learn during the second session: Costs Segmentation and present your questions clearly and accurately.

Instructions: Read the chapter 2 of textbook (Garrison and Noreen) for the topic: Managerial Accounting and Cost Concepts. Take note of your questions to be answered during class. Answer the questions 2-2, 2-6, 2-9 and 2-13 (page 58)