Managerial Accounting and the Business Environment Chapter One.doc

Managerial Accounting and the Business Environment Chapter One
Chapter One
Managerial Accounting and the Business Environment
Imports into the United States
1990
1995
2000
2004
Exports from the United States
1990
1995
2000
2004
Usage
The fuels globalization by panies with greater access to geographically dispersed customers, employees, and suppliers.
The number of users more than doubled during the first four years of the new millennium.
Strategy
A strategy is a “game plan” that enables pany to attract customers by distinguishing itself petitors.
The focal point of pany’s strategy should 9>be its target customers.
Customer Value Propositions
Understand and respond to individual customer needs.
Customer Intimacy Strategy
Operational Excellence Strategy
Deliver products and services faster, more conveniently, and at lower prices.
Product Leadership Strategy
Offer higher quality products.
Work of Management

Planning
Controlling
Directing and Motivating
Planning
Identify alternatives.
Select alternative that does the best job of anization’s objectives.
Develop budgets to guide progress toward the selected alternative.
Directing and motivating involves managing day-to-day activities to keep anization running smoothly.
Employee work assignments.
Routine problem solving.
Conflict resolution.
munications.
Directing and Motivating
Controlling
The control function ensures that plans are being followed.
Feedback in the form of performance reports pare actual results with the budget are an essential part of the control function.
Planning and Control Cycle
Decision Making
Formulating long-and short-term plans (Planning)
Measuring performance (Controlling)
Implementing plans (Directing and Motivating)
Comparing actual to planned performance (Controlling)
Begin
Exhibit1-2
Learning Objective 1
Identify the major differences and similarities between financial and managerial accounting.
Comparison of Financial and Manageria