中山大学：《基础会计学》（英文版）Lesson 13 Managerial Accounting: Concepts and Principles

m中山大學管捏學院 经m00 BUSINESS SUN YAT-SEN UNIVERSIT Lesson 13 Managerial Accounting Concepts and Principles 1 as team of NJA DAWIEAML AOJANIA School of business, Sun Yat-sen University

Lesson 13 Managerial Accounting: Concepts and Principles Task Team of FUNDAMENTAL ACCOUNTING School of Business, Sun Yat-sen University

Outline Q What is managerial accounting? Q Comparison between managerial accounting and financial accounting Q Cost classifications in different ways Q Flow of manufacturing activities NJob order cost accounting systems and process cost accounting systems ◆ Cost allocation Task Team of FUndaMientalactoUntING Business Sehool. Sun Yatsen niversity

2 Outline ⧫What is managerial accounting? ⧫Comparison between managerial accounting and financial accounting ⧫Cost classifications in different ways ⧫Flow of manufacturing activities ⧫Job order cost accounting systems and process cost accounting systems ⧫Cost allocation

Introduction Q The previous 12 chapters focus on the financial accounting topics n Please summarize the basic points of financial accounting .Users/Time focus/Emphasis/Importance/ Subject focus/ Requirements n Thinking -Is the information provided by financial accounting enough for an enterprise to conduct its operation and management? If not, how to satisfy this demand for the internal used information? Have you ever heard“ managerialaccounting” Task Team of FUndaMientalactoUntING Business Sehool. Sun Yatsen niversity 3

3 Introduction ⧫ The previous 12 chapters focus on the financial accounting topics  Please summarize the basic points of financial accounting →Users/ Time focus/ Emphasis/ Importance/ Subject focus/ Requirements  Thinking →Is the information provided by financial accounting enough for an enterprise to conduct its operation and management? →If not, how to satisfy this demand for the internal used information? →Have you ever heard “managerial accounting”?

What is Managerial Accounting? Q An activity that provides financial and nonfinancial information to managers and other internal decision makers Q Is quite important to planning, control, and decision making activities Task Team of FUndaMientalactoUntING Business Sehool. Sun Yatsen niversity

4 What is Managerial Accounting? ⧫An activity that provides financial and nonfinancial information to managers and other internal decision makers ⧫Is quite important to planning, control, and decision making activities

The Environment of Managerial Accounting Complexity and size of organizations 「 Regulatory Emphasi environment on quality Environment of Managerial Accounting Competition Development of technolog. y Task Team of FUndaMientalactoUntING Business Sehool. Sun Yatsen niversity 5

5 The Environment of Managerial Accounting Complexity and size of organizations Development of technology Regulatory environment Competition Emphasis on quality Environment of Managerial Accounting

Managerial Accounting and Financial Accounting Financial Manageria Accounting Accounting 1. Users Investors, creditors, and Managers, employees, and other external users other internal users 2.Time focus Historical perspective Future emphasis 3. Emphasis Objectivity and Relevance Verifiability for planning and control 4.Importance Precision of information Timeliness of information 5. Subject focus Summarized data for Detailed segment re ports the whole organization of an organization 6. Requirements Structured and often Re lative ly flexible controlled by GAAP (no GAAP) Task Team of FUndaMientalactoUntING Business Sehool. Sun Yatsen niversity 6

6 Managerial Accounting and Financial Accounting Financial Managerial Accounting Accounting 1. Users Investors, creditors, and Managers, employees, and other external users other internal users 2. Time focus Historical perspective Future emphasis 3. Emphasis Objectivity and Relevance Verifiability for planning and control 4. Importance Precision of information Timeliness of information 5. Subject focus Summarized data for Detailed segment reports the whole organization of an organization 6. Requirements Structured and often Relatively flexible controlled by GAAP (no GAAP)

Cost classifications A Costs can be classified by n Relevance D Behaviour n Controllability I Traceability D Function Task Team of FUndaMientalactoUntING Business Sehool. Sun Yatsen niversity 7

7 Cost Classifications ⧫Costs can be classified by:  Relevance Behaviour  Controllability Traceability Function

Costs Classification by Relevance ◆ Relevant n f costs influence a decision Costs that are applicable to a particular decision. Costs that should have a bearing on which alternative a manager selects. Costs that are avoidable future costs that differ between alternatives ◆ Irrelevant n f costs do not influence a decision Task Team of FUndaMientalactoUntING Business Sehool. Sun Yatsen niversity

8 Costs Classification by Relevance ⧫ Relevant  If costs influence a decision →Costs that are applicable to a particular decision. →Costs that should have a bearing on which alternative a manager selects. →Costs that are avoidable. →Future costs that differ between alternatives. ⧫ Irrelevant  If costs do not influence a decision

Costs Classification by Relevance ◆ Sunk costs D All costs incurred in the past that cannot be changed by any decision made now or in the future. n should not be considered in decisions D relevant n Example: You bought an automobile that cost $30,000 two years ago. The $30,000 cost is sunk because whether you drive it, park it, trade it, or sell it, you cannot change the $30.000 cost. Task Team of FUndaMientalactoUntING Business Sehool. Sun Yatsen niversity

9 Costs Classification by Relevance ⧫ Sunk Costs  All costs incurred in the past that cannot be changed by any decision made now or in the future.  should not be considered in decisions.  Irrelevant  Example: You bought an automobile that cost $30,000 two years ago. The $30,000 cost is sunk because whether you drive it, park it, trade it, or sell it, you cannot change the $30,000 cost

Costs Classification by Relevance ◆Out- of-pocket costs n require future outlays of cash n associated with a particular decision n relevant for future decisions n Example: Considering the decision to take a vacation or stay at home, if you choose a vacation, you will only have travel costs(out-of- pocket costs). Task Team of FUndaMientalactoUntING Business Sehool. Sun Yatsen niversity

10 Costs Classification by Relevance ⧫ Out-of-pocket costs  require future outlays of cash  associated with a particular decision  relevant for future decisions  Example: Considering the decision to take a vacation or stay at home, if you choose a vacation, you will only have travel costs (out-of￾pocket costs)