Post on 03-Jun-2018
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Managerial Accounting
Managerial Accounting
Fifth Edition
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Managerial Accounting Basics
Managerial accounting, also called management
accounting, is a field of accounting that provides
economic and financial information for managers and
other internal users.
Managerial accounting applies to all types of
businesses.
Corporations Proprietorships
Partnerships
Not-for-profit
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Comparing Managerial And Financial Accounting
Managerial Accounting Basics
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Management Functions
Managerial Accounting Basics
Planning Directing Controlling
Looking ahead
Setting goals and
objectives
Coordinate activities
and human resources
Implement objectives
Provide incentives to
motivate employees
Hire/train employeesProduce smooth-
running operation
Keeping activities on
track
Determine whether
goals are met
Decide changes
needed to get back on
track
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Managerial Cost Concepts
Manufacturing consists of activities and processes
that convert raw materials into finished goods.
Manufacturing Costs
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Manufacturing Costs
MaterialsRaw Materials
Basic materials and parts used in manufacturing
process.
Direct Materials
Raw materials that can be physically and directly
associated with the finished product
Indirect MaterialsNot physically part of the finished product or
they are an insignificant
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Direct LaborLabor
Indirect Labor
Manufacturing Costs
Work of factory employees that can be physically anddirectly associated with the product.
Work of factory employees that has no physicalassociation with the finished product.
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Costs that are indirectlyassociated with manufacturingthe finished product.
Includes all manufacturing costs exceptdirect materialsand direct labor.
Manufacturing Overhead
Manufacturing Costs
BE4
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Product Versus Period Costs
BE6
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Cost of Goods Sold Components
Manufacturing Costs in Financial Statements
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Cost of goods sold sections of merchandisingand manufacturing income statements
Manufacturing Costs in Financial Statements
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Determining the Cost of Goods ManufacturedTotal Work in Process(1) cost of beginning work in process and
(2) total manufacturing costs for the current period.
Total Manufacturing Costs sum of direct material costs, direct
labor costs, and manufacturing overhead in the current year.
Manufacturing Costs in Financial Statements
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Cost of Goods Manufactured Schedule
Manufacturing Costs in Financial Statements
BE 10 & 11
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Manufacturing Costs in Financial Statements
Inventory accounts for a manufacturer
Balance Sheet
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Manufacturing Costs in Financial Statements
Current assets sections of merchandising
and manufacturing balance sheets
Balance Sheet
BE9