Managerial Accounting Chapter 1

Managers Responsibilities
Planning, Directing, Controlling
Planning
sets goals and objectives ex. generate more sales>open a new store
Directing
overseeing day-to-day operations ex. use cost report to adjust material usage
Controlling
evaluate results and make adjustments
Managerial accounting differs from financial accounting in that managerial accounting
emphasizes data relevance over data objectivity
Corporate position responsible for raising capital and investing funds
Treasurer
Manages company on a daily basis
CEO
Responsible for general financial accounting, managerial accounting and tax reporting
Controller
Maintain an appropriate level of professional expertise by continually developing knowledge and skills
Competence
Perform professional duties in accordance with relevant laws, regulations, and technical standards
Competence
Provide decision support information and recommendations that are accurate, clear, concise, and timely
Competence
Recognize and communicate professional limitations or other constraints that would preclude responsible judgement or successful performance of an activity
Competence
Keep information confidential except when disclosure is authorized or legally required
Confidentiality
Inform all relevant parties regarding appropriate use of confidential information. Monitor subordinates’ activities to ensure compliance.
Confidentiality
Refrain from using confidential information for unethical or illegal advantage
Confidentiality
Mitigate actual conflicts of interest. Regularly communicate with business associates to avoid apparent conflicts of interest. Advise all parties of any potential conflicts
Integrity
Refrain from engaging in any conduct that would prejudice carrying out duties ethically
Integrity
Abstain from engaging in or supporting any activity that might discredit the profession
Integrity
Communicate information fairly and objectively
Credibility
Disclose all relevant information that could reasonably be expected to influence an intended user’s understanding of the reports, analyses, or recommendations
Credibility
Disclose delays or deficiencies in information, timeliness, processing, or internal controls in conformance with organization policy and/or applicable law.
Credibility

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