Chapter 18
MANAGERIAL ACCOUNTING
CONCEPTS AND PRINCIPLES
PowerPoint Authors:
Susan Coomer Galbreath, Ph.D., CPA
Charles W. Caldwell, D.B.A., CMA
Jon A. Booker, Ph.D., CPA, CIA
Cynthia J. Rooney, Ph.D., CPA
Copyright © 2015 by McGraw-Hill Education (Asia) All rights reserved.
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C1 MANAGERIAL ACCOUNTING
BASICS
Managerial accounting Financial accounting
provides financial and provides general
nonfinancial information purpose financial
for managers of an information to those
organization and other who are outside
decision makers. the organization.
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C1 PURPOSE OF MANAGERIAL
ACCOUNTING
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C1
NATURE OF MANAGERIAL
ACCOUNTING
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C6
MANAGERIAL ACCOUNTING
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C6
TOTAL QUALITY MANAGEMENT
Quality improvement Seek and uncover
applied to all aspects of waste.
business activities.
Constant Focus on
Higher Standards
Employees encouraged Company emphasizes
to try new methods value of quality through
to improve quality. quality awards.
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C6 JUST-IN-TIME (JIT)
MANUFACTURING
Receive
customer Complete products
orders. just-in-time to
ship to customers.
Schedule
Production.
Receive materials Complete parts
just-in-time for just-in-time for
production. assembly into products.
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C6 IMPLICATIONS FOR
MANAGERIAL ACCOUNTING
Understand the Price paid is
Measure value an important
nature and
provided to determinant
sources of cost
customers of value
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C1 FRAUD AND ETHICS IN
MANAGERIAL ACCOUNTING
Fraud…
1. Involves the use of one’s job for personal
gain through the deliberate misuse of the
employer’s assets.
2. Is done to provide direct or indirect benefit
to the employee.
3. Violates the employees’ duties to his
employer.
4. Costs the employer money.
5. Is secret.
6. Increases business costs.
The Institute of Management Accountants has issued a code of
ethics to help accountants involved in solving ethical dilemmas.
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C1
Incidence of Fraud
Association of Certified Fraud Examiners (ACFE)
report on Global Study On Occupational Fraud
and Abuse 2018
•2,690 real cases of occupational fraud
•Data from 125 countries
•$7 billion+ in total losses
•50% of corruption cases were detected by a tip
•Internal control weaknesses were responsible for
nearly half of the frauds
•Median losses are far greater when the fraudsters
collude
