Goals of managerial accounting

Provide information for: Planning Controlling Making decisions

Planning

Setting objectives Corporations

Maximize stock price vs. maximize profits Increase quality Increase customer satisfaction Increase repeat customers

Planning

Setting objectives Google

Focus on best customer experience possible Do one thing really well Speed Make money responsibly Have fun

ControllingComparing actual to expected performance Budgets

Causes of variances Volume Price

Requires gathering data

Decision Making

Selecting alternatives McDonalds

Alternatives to increase same store sales

Comparison of financial and managerial accounting

Financial accounting Managerial accounting

Users Time orientation Summarization Format/Rules

Value Chain Activities which create value to

customer Activity based accounting

Quality of product: compete on quality Price: compete on price Delivery time

Eliminate activities which don’t add value Coffee at hotel

Value Chain Customers

Banks Profitable Not profitable

Ethics Ethical versus legal

What is ethical? Benefits of ethical behavior