Type:
Instructor Manual
Resource:
Managerial Accounting
Edition:
6th Edition
Author(s):
Karen W. Braun Wendy M. Tietz
Contents Chapter 1
Introduction to Managerial Accounting ............................................ 1-1
Chapter 2
Building Blocks of Managerial Accounting ..................................... 2-1
Chapter 3
Job Costing........................................................................................ 3-1
Chapter 4 Activity-Based Costing, Lean Operations, and the Costs of Quality ...................................................................................................... 4-1 Chapter 5
Process Costing .................................................................................. 5-1
Chapter 6
Cost Behavior..................................................................................... 6-1
Chapter 7
Cost-Volume-Profit Analysis............................................................ 7-1
Chapter 8
Relevant Costs for Short-Term Decisions ........................................ 8-1
Chapter 9
The Master Budget ........................................................................... 9-1
Chapter 10
Performance Evaluation ................................................................. 10-1
Chapter 11
Standard Costs and Variances ......................................................... 11-1
Chapter 12
Capital Investment Decisions and the Time Value of Money ........ 12-1
Chapter 13
Statement of Cash Flows ................................................................ 13-1
Chapter 14
Financial Statement Analysis ........................................................... 14-1
Chapter 15
Sustainability.................................................................................... 15-1
Chapter 1 Introduction to Managerial Accounting The chapter introduces managerial accounting along with the fundamental principle of the text, which is the importance of using managerial accounting data in decision making. Students are introduced to the importance of such data in decision making by discussing the primary responsibilities of a manager: planning, directing, and controlling. To help students understand the importance of managerial accounting, financial and managerial accounting are contrasted and compared. Managerial accounting has internal users relying on relevant information prepared specifically for management’s needs, whereas financial accounting has external users using reliable and objective information in the form of financial statements. The role of managerial accounting is illustrated by comparing the perception and reality of accounting and through the presentation of a typical organizational structure as well as the roles and skills required of management accountants. In addition to their traditional roles, management accountants also play an important role in planning, analyzing, and interpreting accounting data and providing decision support. Management accountants are often referred to as business advisors, analysts, and finance professionals. To fulfill these roles, management accountants today must possess both technical and nontechnical competencies, such as solid knowledge of both financial and managerial accounting, analytical skills, knowledge of how a business functions, ability to work on a team, and oral and written communication skills. Management accountants are trusted and valued business advisors. Managerial accounting knowledge is important to all types of careers, including sales professionals and musicians. The IMA is the professional association for management accountants, which also develops standards of ethics and standards of professional conduct. It provides a forum for research, practice development, education, knowledge sharing, and advocacy of the highest ethical and best practices in management accounting and finance. The Certified Management Accountant (CMA) certification, which reinforces the technical skills required for management accountants, is issued by the IMA and requires professionals to pass a rigorous two-part exam, gain two years of relevant professional experience, and maintain continuing professional education. The IMA has also developed principles and standards to help management accountants deal with ethical challenges. The Decision Guidelines and Summary Problems are useful examples of questions and outlines that help students summarize their learning and reinforce the objectives of the chapter. Two sets of Decision Guidelines and Summary Problems are present in this chapter. The first set of Guidelines reinforces the role of managerial accounting and the management accountant in an organization. The first set of Summary Problems reinforces the concepts introduced in the first part of the chapter. Topics include managements’ responsibilities, managerial versus financial accounting, and ethical responsibilities. The next section of the chapter presents the implications of business trends on management accounting. Business trends discussed include enterprise resource planning, critical thinking, implications of a knowledge economy, sustainability, social responsibility, and the triple bottom line. The section ends with a discussion of the Sarbanes-Oxley Act of 2002. The next section of the chapter focuses on data analytics, which is broadly defined as using data to make good business decisions. Data analytics is distinguished for other forms of data collection by the sheer amount and variety of data collected. The benefits of data analytics discussed include adding more factbased information to the decision-making process, helping businesses make quicker decisions, increasing 1-1 .