Scribd Logo
Încărcați

Bine ați venit la Scribd!

  • MGT Acc Lecture 1

    Încărcat de

    Tahsinul Haque Tasif
    45 vizualizări15 pagini
    This document provides an overview of accounting and cost accounting concepts. It discusses that accounting involves identifying, recording, classifying and summarizing financial transactions to produce financial reports. It outlines the main branches of accounting as financial accounting, cost accounting, and managerial accounting. It also discusses the accounting information system process and key users of accounting information like management, investors, and creditors. The document compares financial and managerial accounting and outlines some challenges in management accounting like shifts to service economies and advances in technology. It defines cost accounting as concerned with both calculating costs and managing costs for purposes like planning, controlling, and decision making. It discusses the two-fold functions of cost accounting for financial reporting and management decision making.

    Descriere originală:

    management

    Titlu original

    Mgt Acc Lecture 1

    Drepturi de autor

    © © All Rights Reserved

    Formate disponibile

    PPT, PDF, TXT sau citiți online pe Scribd

    Vi se pare util acest document?

    Este necorespunzător acest conținut?

    Raportați acest document
    This document provides an overview of accounting and cost accounting concepts. It discusses that accounting involves identifying, recording, classifying and summarizing financial transactions to produce financial reports. It outlines the main branches of accounting as financial accounting, cost accounting, and managerial accounting. It also discusses the accounting information system process and key users of accounting information like management, investors, and creditors. The document compares financial and managerial accounting and outlines some challenges in management accounting like shifts to service economies and advances in technology. It defines cost accounting as concerned with both calculating costs and managing costs for purposes like planning, controlling, and decision making. It discusses the two-fold functions of cost accounting for financial reporting and management decision making.

    Drepturi de autor:

    © All Rights Reserved
    Descărcați ca PPT, PDF, TXT sau citiți online pe Scribd
    Indicator pentru conținut neadecvat
    45 vizualizări15 pagini

    MGT Acc Lecture 1

    Încărcat de

    Tahsinul Haque Tasif
    This document provides an overview of accounting and cost accounting concepts. It discusses that accounting involves identifying, recording, classifying and summarizing financial transactions to produce financial reports. It outlines the main branches of accounting as financial accounting, cost accounting, and managerial accounting. It also discusses the accounting information system process and key users of accounting information like management, investors, and creditors. The document compares financial and managerial accounting and outlines some challenges in management accounting like shifts to service economies and advances in technology. It defines cost accounting as concerned with both calculating costs and managing costs for purposes like planning, controlling, and decision making. It discusses the two-fold functions of cost accounting for financial reporting and management decision making.

    Drepturi de autor:

    © All Rights Reserved
    Descărcați ca PPT, PDF, TXT sau citiți online pe Scribd
    Indicator pentru conținut neadecvat
    din 15

    Lecture 1

    Tahmina Ahmed
    Lecturer
    Department of Humanities
    Bangladesh University of Engineering & Technology (BUET)

    Accounting is the process of

    identifying,
    recording,
    classifying and
    summarizing financial transactions
    --------to produce the financial reports for their
    ultimate use.

    Branches of Accounting
    Financial Accounting

    Cost Accounting

    Managerial Accounting

    Accounting Information System


    Process of gathering, organizing, and
    Communicating financial information

    Financial
    Statements

    Users of Accounting Information


    Management
    Accounting

    Financial Accounting
    External Users

    Internal managers

    Day-to-day operating decisions


    Long-range strategic decisions

    Investors: Stockholders
    Creditors:
    Suppliers
    Bankers
    Government Authorities

    Comparison of Financial and


    Managerial Accounting
    Financial Accounting

    Managerial Accounting

    External persons who


    make financial decisions

    Managers who plan for


    and control an organization

    Historical perspective

    Future emphasis

    3. Verifiability
    versus relevance

    Emphasis on
    verifiability

    Emphasis on relevance
    for planning and control

    4. Precision versus
    timeliness

    Emphasis on
    precision

    Emphasis on
    timeliness

    5. Subject

    Primary focus is on
    the whole organization

    Focuses on segments
    of an organization

    6. GAAP

    Must follow GAAP


    and prescribed formats

    Need not follow GAAP


    or any prescribed format

    Mandatory for
    external reports

    Not
    Mandatory

    1. Users
    2. Time focus

    7. Requirement

    2-6

    Management Accounting Challenges


    Shift from a manufacturing-based
    to a service-based economy
    Increased global competition
    Advances in technology
    Changes in business processes

    Advances in Technology
    E-commerce
    Enterprise resource planning (ERP)

    Business process reengineering:


    Just-in-time (JIT) philosophy
    Lean manufacturing
    Computer-integrated manufacturing

    Management of COST

    Whats Cost?
    Sacrificed resource to achieve a specific
    objective.
    In accounting, cost is defined as the cash
    amount (or the cash equivalent) given up for an
    asset. Cost includes all costs necessary to get
    an asset in place and ready for use.
    Example: Inventory purchase price plus freightin.

    Whats Cost Accounting?


    Cost accounting is concerned with COST. It
    includes not only CALCULATION of cost
    rather MANGEMENT of COST.
    CALCULATION: determination of costs of

    products or services by
    - recording
    -classifying
    -summarizing costs

    Whats Cost Accounting?


    MANAGEMENT

    -Planning
    -Controlling
    -Furnishing of information to management for
    decision making.

    Two-fold Function
    Cost Accounting to Financial

    Accounting
    Calculation and reporting of
    -Cost of goods sold and
    -Finished goods, work in process, and raw
    materials inventory

    Two-fold Function
    Cost Accounting to Management
    Accounting

    -Budgeting
    -Make or buy decision, keep or replace decision
    -Determination of selling price.
    -Resource allocation
    -Cost of defectives and defect rates,
    performance measurement etc.

    End of Lecture 1

    S-ar putea să vă placă și