Prologue: Work of Management Notes + Mistakes in HW1 + HW answers
Objective:
to be taught measurement skills that managers use to support planning, controlling, and decision making activities
Blurting session
Financial accounting vs. Managerial accounting 7 key differences
Categories | Financial | Managerial |
Users | Investors, primary users (external users) | Managers |
Time | Past | Future |
Verifiability | objectivity and verifiability | relevance |
Precision | Precision | Timeliness |
Subject | Companywide reports | segment-wide reports |
Rules | GAAP, IFRS, and other prescribed guidelines | Not bound |
Requirement | Mandatory | Not a requirement |
Managerial accounting focuses on 3:
Planning - establish goals, plans to achieve goals, and budget
Controlling - feedback reports on performance to compare with the budget
Decision-making - selection among alternatives
Detective controls are designed to detect an error or an issue after it has occurred but before a small problem turns into a large one. Preventive controls help prevent things from going awry in the first place. It's important to find a balance between the two.
Traditional: Production driven by a sales forecast (Push). Lean: Production is driven by customer demand; items are only produced when an order is placed
Goals must be SMART:
Specific
Measurable
Attainable
Relevant
Time-bound
HW1 Mistakes
Actual lecture taught (Sept. 12)
E1-1
I got the last one wrong - I thought 8 was indirect cost
E1-2
I got 4 wrong - its selling cost
Sir will perfect our reci as long as complete attendance
E1-3
Depreciation is part of selling expenses; period cost
Factory = keyword na usually means product cost
EX. 1-5
Cost is relevant if used for the future
EX. 1-7 - I GOT THIS SO HORRIBLY WRONG
Total indirect manufacturing cost - get indirect manufacturing cost per unit first (variable manufacturing overhead + fixed)
Exercise 1-8
Prologue: Work of Management Notes + Mistakes in HW1 + HW answers
Objective:
to be taught measurement skills that managers use to support planning, controlling, and decision making activities
Blurting session
Financial accounting vs. Managerial accounting 7 key differences
Categories | Financial | Managerial |
Users | Investors, primary users (external users) | Managers |
Time | Past | Future |
Verifiability | objectivity and verifiability | relevance |
Precision | Precision | Timeliness |
Subject | Companywide reports | segment-wide reports |
Rules | GAAP, IFRS, and other prescribed guidelines | Not bound |
Requirement | Mandatory | Not a requirement |
Managerial accounting focuses on 3:
Planning - establish goals, plans to achieve goals, and budget
Controlling - feedback reports on performance to compare with the budget
Decision-making - selection among alternatives
Detective controls are designed to detect an error or an issue after it has occurred but before a small problem turns into a large one. Preventive controls help prevent things from going awry in the first place. It's important to find a balance between the two.
Traditional: Production driven by a sales forecast (Push). Lean: Production is driven by customer demand; items are only produced when an order is placed
Goals must be SMART:
Specific
Measurable
Attainable
Relevant
Time-bound
HW1 Mistakes
Actual lecture taught (Sept. 12)
E1-1
I got the last one wrong - I thought 8 was indirect cost
E1-2
I got 4 wrong - its selling cost
Sir will perfect our reci as long as complete attendance
E1-3
Depreciation is part of selling expenses; period cost
Factory = keyword na usually means product cost
EX. 1-5
Cost is relevant if used for the future
EX. 1-7 - I GOT THIS SO HORRIBLY WRONG
Total indirect manufacturing cost - get indirect manufacturing cost per unit first (variable manufacturing overhead + fixed)
Exercise 1-8
