ACC202 CASE, SLP, TD Homework

Introduction to Managerial Accounting

Modular Learning Outcomes

Upon successful completion of this module, the student will be able to satisfy the following outcomes:

•Case ◦Evaluate the role of the managerial accounting profession.

•SLP ◦Identify the role of managerial accounting in an organization of interest to each student.

•Discussion ◦Understand the role of the managerial accountant.

Module Overview

Welcome to ACC 202, Managerial Accounting

Managerial accounting is essentially a staff function. It works to provide information to decision makers. Decisions are not made by the managerial accountant. Nor are corporate decisions made solely on the basis of the information provided by the managerial accountant. Rather, this information is merely one factor, albeit a major one, in the decision making process of corporate managers.

The Role of the Managerial Accountant

The Institute of Management Accountants (IMA) states the following about the profession (http://www.imanet.org/about_ima/our_mission.aspx):

The vast majority of accountants and financial professionals—80%, in fact—work inside businesses and organizations. Their work is essential to financial management, organizational development, and the achievement of strategic goals. While external auditing is a very visible part of the accounting profession, sound internal finance and accounting operations are essential for the proper functioning of any organization.

The roles and responsibilities of internal accountants and financial professionals include:

•Managing functions that are critical to business performance

•Supporting organizational management and strategic development

•Providing accurate and insightful information for better decisions

•Ensuring that organizations operate with integrity and proper governance

•Planning for the long-term and helping to ensure sustainability

•Safeguarding the interests of the organization and its key stakeholders

You’ll find additional information and resources on the IMA website.

Managerial versus Financial Accounting

Managerial accounting differs from financial accounting in that it

•has an internal orientation;

•is detailed;

•is future oriented;

•involves estimates;

•lacks formal standards; and

•is not mandatory.