Managerial Accounting: an Overview

ACCT116 Management Accounting Spring Semester 2012/13
Course Instructor Dr Emad AWADALLAH Library Building Basement Room B161 Email: emad.awadallah@qu.edu.qa

Contact Details
O Course Instructor: Dr Emad AWADALLAH

 My Office room: Library Building, Basement,

Room B161  Office Hours: Sunday Female 9:30-10:30 am  Office Hours: Thursday Male 9:30-10:30 am  E-mail: emad.awadallah@qu.edu.qa

Core Text Book

By Garrison, Noreen and Brewer, 14th edition, 2011.

Assessment
Grading
First Exam Second Exam Final Exam Quizzes

Points
20 25 40 10

Course Project

5

Indicative Content:
1.

2.
3. 4.  5. 6. 7.  8. 9. 

Managerial Accounting: An Overview Managerial Accounting & Cost Concepts Job-Order Costing Cost-Volume-Profit (CVP) Relationships Course Review (First Exam) CVP Relationships: Continuation Variable Costing & Segment Reporting Profit Planning Course Review (Second Exam) Differential Analysis: The Key to Decision Making Capital Budgeting Decisions Overall Review for the final exam

Management Accounting & Business Environment

Relevant Costs Analysis

Limiting Factors

Cost Classifications

Let us CVP now Analysis Break some WALLS!
Standard Costing

Throughput Accounting

Budgeting

Module Overview

BSC

LEARNING

Closed

I

ACCT116 Lecture 1
Managerial Accounting: An Overview
Reading: Garrison et al. Chapter 1

Topic 1 Managerial Accounting: An Overview
O Reading:
 Chapter 1 in Garrison et al.

O Main Points to be covered: 1. What is Managerial Accounting? 2. Why does Managerial Accounting Matter to Your Career? 3. What Skills Do Managers Need to Succeed? 4. The Importance of Ethics in Business and 5. Corporate Social Responsibility (CSR).

Introduction to Accounting
O Accounting is concerned with providing

both financial & non-financial information ---------------------that will help decision-makers to make good decisions.

What Matters??
"Not everything that counts can be counted, and not everything that can be counted counts." Albert Einstein

http://www.brainyquote.com/quotes/authors/a/albert_einstein.html

Users of Accounting Information
 Users of accounting information can be divided in two categories: 1. ---------- parties within the organisation, Internal managers mainly ------------ ; and

shareholders 2. External parties such as ------------------- , ---------creditors and regulatory agencies, outside the organisation.

Branches of Accounting
 It is possible to distinguish between two branches of accounting, that reflect the internal & external users of accounting information. 1. Management ------------accounting is concerned with the provision of information to people within the organisation to help them make better decisions. 2. ------------accounting is concerned with the Financial provision of information to external parties outside the organisation.

Financial and Managerial Accounting: Seven Key Differences
Financial Accounting
1. Users 2. Time focus 3. Verifiability versus relevance 4. Precision versus timeliness 5. Subject 6. Rules 7. Requirement External persons who make financial decisions Historical perspective Emphasis on objectivity and verifiability Emphasis on precision Primary focus is on companywide reports Must follow GAAP / IFRS and prescribed formats Mandatory for external reports

Managerial Accounting
Managers who plan for and control an organization Future emphasis Emphasis on relevance Emphasis on timeliness Focus on segment reports Not bound by GAAP / IFRS or any prescribed format Not Mandatory

Activities of Managerial Accounting

Planning

Controlling

Decision Making

Activities of Managerial Accounting
O Managerial accounting helps managers perform three

vital activities – planning, controlling and decision making. Planning O ------------- involves establishing -------- and specifying goals how to achieve them. O ----------------- involves gathering...