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

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

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