Chapter 1: Managerial Accounting An
Overview
Financial Accounting - correct answer-Reporting financial information to external parties;
stockholders, creditors, and regulators.
Managerial Accounting - correct answer-Providing information to managers for use within the
organization.
Segment - correct answer-A part or activity of an organization about which managers would
like cost, revenue, or profit data.
Examples of business segments: product lines, customers groups (age, gender, ethnicity),
geographical territories, divisions, plants, and departments.
Managerial accounting helps managers perform 3 vital activities - correct answer-1.
Planning: establish goals
2. Controlling: gather feedback
3. Decision making: select course of action from competing alternatives
Planning - correct answer-Establish goals --> Specify how goals will be achieved --> Develop
budgets.
Controlling - correct answer-The control function gathers feedback (compare actual results)
to ensure plans are being followed.
- Compare performance reports
Performance Reports - correct answer-Compares budgeted data to actual data in an effort to
identify and learn from excellent performance and to identify and eliminate sources of
unsatisfactory performance.
Decision Making - correct answer-Making a selection among competing alternatives.
- What should we be selling?
- Who should we be serving?
- How should we execute?
CMA - correct answer-Certified Management Accountant; a management accountant who
has the necessary qualifications and who passes a rigorous professional exam.
What skills do managers need to succeed? - correct answer-- Strategic management skills
- Enterprise risk management skills
- Process management skills
- Lean Production
- Theory of Constraints
- Measurement Skills
- Leadership Skills
Overview
Financial Accounting - correct answer-Reporting financial information to external parties;
stockholders, creditors, and regulators.
Managerial Accounting - correct answer-Providing information to managers for use within the
organization.
Segment - correct answer-A part or activity of an organization about which managers would
like cost, revenue, or profit data.
Examples of business segments: product lines, customers groups (age, gender, ethnicity),
geographical territories, divisions, plants, and departments.
Managerial accounting helps managers perform 3 vital activities - correct answer-1.
Planning: establish goals
2. Controlling: gather feedback
3. Decision making: select course of action from competing alternatives
Planning - correct answer-Establish goals --> Specify how goals will be achieved --> Develop
budgets.
Controlling - correct answer-The control function gathers feedback (compare actual results)
to ensure plans are being followed.
- Compare performance reports
Performance Reports - correct answer-Compares budgeted data to actual data in an effort to
identify and learn from excellent performance and to identify and eliminate sources of
unsatisfactory performance.
Decision Making - correct answer-Making a selection among competing alternatives.
- What should we be selling?
- Who should we be serving?
- How should we execute?
CMA - correct answer-Certified Management Accountant; a management accountant who
has the necessary qualifications and who passes a rigorous professional exam.
What skills do managers need to succeed? - correct answer-- Strategic management skills
- Enterprise risk management skills
- Process management skills
- Lean Production
- Theory of Constraints
- Measurement Skills
- Leadership Skills
