Chapter1

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Identifymanagers fourprimaryresponsibilities

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Directing

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Controlling

DecisionMaking

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Issue
Primaryusers
Distinguishfinancialaccountingfrom managerialaccounting

Managerial
Internal Plan,direct, control,decide

Financial
External Usersmake investingand lendingdecisions

Purposeof information

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Issue Issue Primary accounting product Whatisincluded? Managerial Internalreports usefulto management Definedby management Financial Generalpurpose financial Statements Determinedby GAAP

Managerial

Financial Basedon historical transactionswith externalparties Datamustbe reliableand objective

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Internaland Underlyingbasis external transactions, ofinformation focusonfuture Emphasis Datamustbe relevant

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Issue BusinessUnit

Managerial

Financial

Issue

Managerial

Financial SECrequires publiclytraded companiesto issueaudited financial statements Adequacyof disclosure

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Segmentsofthe Companyasa business whole Dependson management needs Internalaudit Annuallyand quarterly Externalaudit
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Information requirements

Norequirement

Preparation

Verification

Impacton employee behavior

Careful consideration

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Budget

Creditors

Managerial Accounting

Planning

a.

CompaniesmustfollowGAAPintheir financial accounting ____________________systems. Financialaccountingdevelopsreportsfor creditors externalparties,suchas__________and stockholders _______________. Whenmanagersevaluatethecompanys performancecomparedtotheplan,theyare controlling performingthe____________roleof management.
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b.
Controlling Financial Accounting Managers Shareholders

c.

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d. e.

f.

Managers __________aredecisionmakersinsidea company. Financial accounting _____________________providesinformation onacompanyspastperformancetoexternal parties. Managerial accounting ______________________systemsarenot restrictedbyGAAP,butarechosenby comparingthecostsversusthebenefitsofthe system.
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g.

Choosinggoalsandthemeanstoachievethem isthe____________functionofmanagement. planning

h.

Managerial accounting _______________________systemsreporton varioussegmentsorbusinessunitsofthe company. Financial accounting ______________________statementsofpublic companiesareauditedannuallybyCPAs.

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i.

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Board of Directors Audit Committee Chief Executive Officer

Describeorganizationalstructureandtherolesandskillsrequired ofmanagementaccountantswithintheorganization

Chief Operating Officer

Chief Financial Officer

Vice Presidents of various operations

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Treasurer

Controller

Internal Audit

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Audit Committee

Board of Directors

CEO

CFO

a.

CFO COO The_____andthe_____reporttotheCEO.

TheinternalauditfunctionreportstotheCFOor CEO audit committee _______andthe_________________.

b.

Treasurer

Controller

Cross-Functional Teams

COO

c.

controller The__________isdirectlyresponsibleforfinancial accounting,managerialaccountingandtaxreporting. Board of Directors TheCEOishiredbythe_________________.

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d.
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e.

treasurer The__________isdirectlyresponsibleforraising capitalandinvestingfunds. COO The__________isdirectlyresponsibleforthe companysoperations.

Managerialaccountantsoftenworkwith cross functional teams __________________________. Thesubgroupoftheboardofdirectorsiscalledthe audit committee _________________.
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f.

g.

DescribetheroleoftheInstituteofManagementAccountants (IMA)anduseitsethicalstandardstomakereasonableethical judgments

h.

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Discussandanalyzetheimplicationsof regulatoryandbusinesstrends

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E-Commerce

Shift to service economy Throughput time IFRS

SOX 2002

Present

Lean production XBRL Cross-functional teams

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ERP

Total quality management ISO9001: 2008

JIT

Future
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Supply-chain management

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a.

XBRL ________isalanguagethatutilizesa standardizedcodingsystemcompaniesuseto tageachpieceoffinancialandbusiness informationinaformatthatcanbequicklyand efficientlyaccessedovertheInternet.

Supply-chain management b._______________________________involves theexchangeofinformationwithsuppliersto reducecosts,improvequality,andspeed deliveryofgoodsandservicesfromsuppliersto thecompanyanditscustomers.

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c.

Sarbanes-Oxley Act of 2002 The_______________________________was enactedtorestoretrustinpubliclytraded corporations,theirmanagement,theirfinancial statements,andtheirauditors. total quality management Thegoalof___________________________is tomeetcustomers expectationsbyproviding themwithsuperiorproductsandservicesby eliminatingdefectsandwastethroughoutthe valuechain.
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e.

MostofthecostsofadoptingERP,expanding intoaforeignmarket,orimprovingqualityare past incurredinthe_______;butmostofthe future benefitsoccurinthe_______.

d.

f.

Throughput time ________________isthetimebetweenbuying rawmaterialsandsellingthefinishedproducts.

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j.
g.

Enterprise resource planning _______________________________servesthe informationneedsofpeopleinaccountingaswell aspeopleinmarketingandinthewarehouse. E-commerce Firmsadopt_______________toconductbusiness ontheInternet. ISO 9001:2008 Firmsacquirethe_________________certification todemonstratetheircommitmenttoquality.
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Lean production ___________________isaphilosophythat embracestheconceptthatthelowerthe companyswasteis,thelowerthecompanys costswillbe. Extensible Business Reporting Language ______________________________________isa datataggingsystemthatenablescompaniesto releasefinancialandbusinessinformationina formatthatcanbequickly,efficiently,andcost effectivelyaccessed,sorted,andanalyzedover theinternet.
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h.

k.

i.

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l.

TheSECisexpectedtorequiretheadoptionof International Financial Reporting Standards _____________________________________ forallpubliclytradedcompanieswithinthenext fewyears,whichdiffersfromtheGAAPthat companiesarecurrentlyrequiredtouse.

m.Toyotafirstpioneeredaninventoryphilosophy inwhichaproductismanufactured just-in-time ______________tofillcustomerorders; companiesareabletosubstantiallyreducethe quantityofrawmaterialsandfinishedgoods inventories.

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Total quality management n.____________________________isa managementphilosophyofdelighting customerswithsuperiorproductsandservices bycontinuallysettinghighergoalsand improvingtheperformanceofeverybusiness function.

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