Accounting for Managers

1 Managerial Accounting and Cost Concepts CHAPTER OUTLINE The Work of Management and the Need for Managerial Accounting Information ■ Planning ■ Directing and Motivating ■ Controlling ■ The End Results of Managers’ Activities ■ The Planning and Control... More

1 Managerial Accounting and Cost Concepts CHAPTER OUTLINE The Work of Management and the Need for Managerial Accounting Information ■ Planning ■ Directing and Motivating ■ Controlling ■ The End Results of Managers’ Activities ■ The Planning and Control Cycle Comparison of Financial and Managerial Accounting ■ Emphasis on the Future ■ Relevance of Data ■ Less Emphasis on Precision ■ Segments of an Organization ■ Generally Accepted Accounting Principles (GAAP) ■ Managerial Accounting—Not Mandatory General Cost Classifications ■ Manufacturing Costs ■ Nonmanufacturing Costs Product Costs versus Period Costs ■ Product Costs ■ Period Costs ■ Prime Cost and Conversion Cost Cost Classifications on Financial Statements ■ The Balance Sheet ■ The Income Statement ■ Schedule of Cost of Goods Manufactured Product Cost Flows ■ Inventoriable Costs ■ An Example of Cost Flows Cost Classifications for Predicting Cost Behavior ■ Variable Cost ■ Fixed Cost Cost Classifications for Assigning Costs to Cost Less