2. Managerial Accounting and Business Environment
Department of Business Administration
Faculty of Business Studies
International Islamic University Chittagong
Prepared For
MD.Musharof Hossain
Lecturer
DBA, IIUC
Prepared By
MD.Shadat Hossion
ID NO:-R 143068
Semester- 3rd
4. Managerial Accounting and
Financial Accounting
Managerial accounting
provides information
for managers inside an
organization who
direct and control
its operations.
Financial accounting
provides information
to stockholders,
creditors and others
who are outside
the organization.
5. Differences Between Financial and
Managerial Accounting
Financial Accounting Managerial Accounting
1. Users External persons who Managers who plan for
make financial decisions and control an organization
2. Time focus Historical perspective Future emphasis
3. Verifiability Emphasis on Emphasis on relevance
versus relevance verifiability for planning and control
4. Precision versus Emphasis on Emphasis on
timeliness precision timeliness
5. Subject Primary focus is on Focuses on segments
the whole organization of an organization
6. Requirements Must follow GAAP Need not follow GAAP
and prescribed formats or any prescribed format
7. Complete products
just in time to
ship customers.
Complete parts
just in time for
assembly into products.
Schedule
production.
Receive materials
just in time for
production.
Receive
customer
orders.
Just-in-Time (JIT) Systems
8. is
Total Quality Management
(TQM)
Continuous
Improvement
TQM improves productivity by encouraging the use of fact
and analysis for decision making and if properly implemented,
avoids counter-productive organizational infighting.
Systematic problem
solving using tools
such as
Benchmarking
9. Process Reengineering
The process is redesigned
to eliminate all
non-value-added activities
Every step in
the business
process must
be justified.
A business process
is diagrammed
in detail.
10. Theory of Constraints
A constraint (also called a bottleneck) is anything that
prevents us from getting more of what we want.
The constraint in a system is determined
by the step that has the smallest capacity.
12. The code of conduct of
managerial accounting
Competence
Confidentiality
Integrity
Objectivity
13. Standards of Ethical Conduct
Competence
Maintain
professional competence.
Follow applicable laws,
regulations, and
standards.
Prepare accurate, clear,
concise, and timely
decision support
information.
Recognize and
communicate professional
limitations that preclude
responsible judgment.
14. Standards of Ethical Conduct
Do not disclose confidential
information unless legally
obligated to do so.
Ensure that subordinates do
not disclose confidential
information.
Do not use
confidential
information for
unethical or
illegal
advantage.
Confidentiality
15. Standards of Ethical Conduct
Integrity
Mitigate conflicts of interest
and advise others of
potential conflicts.
Abstain from activities that
might discredit the
profession.
Refrain from
conduct that
would prejudice
carrying out duties
ethically.
16. Standards of Ethical Conduct
Credibility
Communicate information
fairly and objectively.
Disclose all relevant
information that could
influence a user’s
understanding of reports
or recommendations.
Disclose delays or
deficiencies in
information
timeliness,
processing, or
internal controls.
17. Objectives Of Management
Accounting
To provide qualitative and quantitative
information to management.
To help management to decision making
To help management in overall control
To play effective role in controlling cost and
maximizing profit