The Changing Role Of Managerial Accounting In A Dynamic Business Environment

2232 words - 9 pages



Learning Objectives

1. Define managerial accounting and describe its role in the management process.

2. Explain four fundamental management processes that help organizations attain their goals.

3. List and describe five objectives of managerial accounting activity.

4. Explain the major differences between managerial and financial accounting.

5. Explain where managerial accountants are located in an organization, in terms of formal organization, deployment in cross-functional teams, and physical location.

6. Describe the roles of an organization's chief financial ...view middle of the document...

Information focus

IV. Role of the Managerial Accountant
A. Line and staff positions
B. Management accountants
1. Chief financial officer (CFO) or controller
2. Treasurer
3. Internal auditor

C. Cross-functional deployment

D. Location within the organization

V. Major Themes of Managerial Accounting
A. Information and incentives
B. Behavioral issues
C. Costs and benefits
D. Management of Capacity and Capacity Costs

Evolution and Adaptation in Managerial Accounting

A. E-business

B. Growth of the service sector

C. Global competition

D. Cross-functional teams

E. Product life cycles and diversity
F. Information and communication technology
G. Just-in-time inventory management
H. Total quality management
I. Continuous improvement
J. Cost management systems

VII. Strategic Cost Management and the Value Chain

VIII. Business, Ethics, and the Accountant
A. Nature and causes of corporate scandals
B. Corporate and accounting reform

IX. Managerial Accounting as a Career
A. Professional certification
B. Professional ethics
1. Competence
2. Confidentiality
3. Integrity
4. Credibility

Key Lecture Concepts


Types of organizations include manufacturers, retailers, service providers, agribusinesses, and nonprofit firms. These organizations have goals—for example: growth, profit, quality, leadership, etc.

Organizations have information needs in the financial, production, personnel, environmental, and legal areas. Managerial accounting provides some of this information. Managerial accounting is the process of identifying, measuring, analyzing, interpreting, and communicating information in pursuit of an organization's goals.
The role of managerial accountants has expanded in recent years. Formerly in staff positions, managerial accountants now serve as internal business consultants, trusted advisors, and "business partners."

• Management functions performed within an organization can often be summarized as decision making, planning, the directing of operational activities, and controlling.

➢ Decision making—the process of choosing among available alternatives

➢ Planning—developing a detailed financial and operational description of anticipated operations

➢ Directing operational activities—running the organization on a day-to-day basis

➢ Controlling—ensuring that the organization operates in the intended manner to achieve its goals


Provides managers with information (e.g., product costs, budgets, cash flows). The information includes financial and nonfinancial data to help...

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