Managerial Accounting Chapter 1
Managerial Accounting and the Business Environment
Chapter 1
© 2010 The McGraw-Hill Companies, Inc.
Learning Objective 1
Understand the role of management accountants in an organization.
McGraw-‐Hill/Irwin
Slide 2
Organizational Structure
Decentralization is the delegation of decisionmaking authority throughout an organization.
Corporate Organization Chart
Board of Directors
President Purchasing Personnel Vice President Operations Chief Financial Officer
Controller
Slide 3
Treasurer
McGraw-‐Hill/Irwin
The Chief Financial Officer (CFO)
A member of the top management team responsible for:
Providing timely and relevant data to support planning and control activities. Preparing financial statements for external users.
McGraw-‐Hill/Irwin
Slide 4
Line and Staff Relationships
Line positions are directly related to achievement of the basic objectives of an organization.
Example: Production supervisors in a manufacturing plant.
Staff positions support and assist line positions.
Example: Cost accountants in the manufacturing plant.
McGraw-‐Hill/Irwin
Slide 5
Work of Management Accountants
Management accountants work under Controller or directly under CFO
Considered staff position Internal consultants or business analysts within the organization
Less time on mechanical aspects of accounting More time on analyzing and interpreting information for decision-making purposes Cross-functional team and face-to-face communication within the organization
McGraw-‐Hill/Irwin
Slide 6
Learning Objective 2
Understand the importance of upholding ethical standards.
McGraw-‐Hill/Irwin
Slide 7
Why Have Ethical Standards?
Ethical standards in business are essential for a smooth functioning economy.
Without ethical standards in business, the economy, and all of us who depend on it for jobs, goods, and services, would suffer.
Abandoning
Chapter 1
© 2010 The McGraw-Hill Companies, Inc.
Learning Objective 1
Understand the role of management accountants in an organization.
McGraw-‐Hill/Irwin
Slide 2
Organizational Structure
Decentralization is the delegation of decisionmaking authority throughout an organization.
Corporate Organization Chart
Board of Directors
President Purchasing Personnel Vice President Operations Chief Financial Officer
Controller
Slide 3
Treasurer
McGraw-‐Hill/Irwin
The Chief Financial Officer (CFO)
A member of the top management team responsible for:
Providing timely and relevant data to support planning and control activities. Preparing financial statements for external users.
McGraw-‐Hill/Irwin
Slide 4
Line and Staff Relationships
Line positions are directly related to achievement of the basic objectives of an organization.
Example: Production supervisors in a manufacturing plant.
Staff positions support and assist line positions.
Example: Cost accountants in the manufacturing plant.
McGraw-‐Hill/Irwin
Slide 5
Work of Management Accountants
Management accountants work under Controller or directly under CFO
Considered staff position Internal consultants or business analysts within the organization
Less time on mechanical aspects of accounting More time on analyzing and interpreting information for decision-making purposes Cross-functional team and face-to-face communication within the organization
McGraw-‐Hill/Irwin
Slide 6
Learning Objective 2
Understand the importance of upholding ethical standards.
McGraw-‐Hill/Irwin
Slide 7
Why Have Ethical Standards?
Ethical standards in business are essential for a smooth functioning economy.
Without ethical standards in business, the economy, and all of us who depend on it for jobs, goods, and services, would suffer.
Abandoning