Professional Documents
Culture Documents
Learning Objectives
Identify the features of managerial accounting and the
1 functions of management.
1-1
LEARNING Identify the features of managerial accounting and
OBJECTIVE
1 the functions of management.
1-2 LO 1
Comparing Managerial and Financial
Accounting
ILLUSTRATION 1-1
Differences between financial
and managerial accounting
1-3 LO 1
Management Functions
1-4 LO 1
1-5 LO 1
Organizational Structure
Illustration 1-2
A typical corporate
organization chart
1-6 LO 1
1 Managerial Accounting
1-7 LO 1
1 Managerial Accounting
1-8 LO 1
Describe the classes of manufacturing costs
LEARNING
OBJECTIVE
2 and the differences between product and
period costs.
1-9
Manufacturing Costs
1-10 LO 2
Manufacturing Costs
Direct Materials
Raw Materials
Basic materials and parts used in
manufacturing process.
Direct Materials
Raw materials that can be physically and directly associated
with the finished product during the manufacturing process.
1-11 LO 2
Manufacturing Costs
Direct Materials
Indirect Materials
1-12 LO 2
Manufacturing Costs
Direct Labor
Work of factory employees that can be
physically and directly associated with
converting raw materials into finished
goods.
Indirect Labor
Work of factory employees that has no physical association
with the finished product or for which it is impractical to trace
costs to the goods produced.
1-13 LO 2
Manufacturing Costs
Manufacturing Overhead
Costs that are indirectly associated with manufacturing
the finished product.
1-14 LO 2
1-15 LO 2
Product Versus Period Costs
Product Costs
Direct materials
Components: Direct labor
Manufacturing overhead
1-16 LO 2
Product Versus Period Costs
Period Costs
Charged to expense as incurred.
Non-manufacturing costs.
1-17 LO 2
Product Versus Period Costs
Illustration 1-3
Product versus period costs
1-18 LO 2
Product Versus Period Costs
Illustration 1-4
1-19 LO 2
Product Versus Period Costs
Illustration 1-4
1-20 LO 2
Product Versus Period Costs
Illustration 1-5
Computation of total
manufacturing costs
1-21 LO 2
2 Managerial Cost Concepts
Income Statement
Under a periodic inventory system, the income statements of
a merchandiser and a manufacturer differ in the cost of
goods sold section.
“COGS”
1-23
Helpful Hint
Income Statement Assume a periodic
inventory system in
this illustration.
Illustration 1-6
Cost of goods sold components
1-24 LO 3
Income Statement
Illustration 1-7
Cost of goods sold sections of
merchandising and manufacturing
Income statements
1-25 LO 3
Cost of Goods Manufactured
Illustration 1-8
1-26 Cost of goods manufactured formula LO 3
Illustration 1-9
Cost of goods
manufactured schedule
1-27 LO 3
3 Cost of Goods Manufactured
1-28 LO 3
3 Cost of Goods Manufactured
1-29 LO 3
Balance Sheet
1-30 LO 3
Balance Sheet
Illustration 1-11
Current assets sections of
merchandising and manufacturing
balance sheets
1-31 LO 3
LEARNING
OBJECTIVE
4 Discuss trends in managerial accounting.
Service Industries
Much of the U.S. economy has shifted toward an
emphasis on providing services rather than goods.
1-32
1-33 LO 4
Focus on the Value Chain
Illustration 1-12
A manufacturer’s value chain
1-34 LO 4
Focus on the Value Chain
1-35 LO 4
Focus on the Value Chain
Theory of Constraints
Constraints (“bottlenecks” ) limit the company’s
potential profitability.
1-36 LO 4
Focus on the Value Chain
1-37 LO 4
Balanced Scorecard
1-38 LO 4
Business Ethics
► Global Crossing,
► WorldCom
1-39 LO 4
Business Ethics
1-40 LO 4
Business Ethics
1-41 LO 4
Corporate Social Responsibility
1-42 LO 4
4 Trends in Managerial Accounting
1-43 LO 4
4 Trends in Managerial Accounting
1-44 LO 4
4 Trends in Managerial Accounting
f
7. ______ Inventory system in which
goods are manufactured or
purchased just as they are needed
for use.
1-45 LO 4
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