7/21/2019 Class 01 -- Introduction to Managerial Accounting Course
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Managerial
ACCOUNTING:Information for Business Decisions
Derrald Stice
7/21/2019 Class 01 -- Introduction to Managerial Accounting Course
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Today’s Agenda• The Need for Financial Accounting: Hayley’s
Mooncake Co!any
• The Case of "al#Mart’s $ales: %etailedManagerial Accounting Inforation
•
A Co!arison of Financial and ManagerialAccounting
• $i!le &reake'en Analysis: A Ukrainianrestaurant
• Ho( %oes this Class "ork)
– $!eci*cally+ do I ha'e to coe to class)• The My,ducator -earning Tool
• What do I have to do before our next classmeeting?
7/21/2019 Class 01 -- Introduction to Managerial Accounting Course
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The Need for Accounting
Hayley’s Mooncake
Co!any• Hayley has a drea . she (antsto start and o!erate her o(nooncake /usiness0
• Ho( uch oney does she needto ake this ha!!en)
– $100 million
• $o+ fro (here can sheget the 1233 illion)
7/21/2019 Class 01 -- Introduction to Managerial Accounting Course
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Hayley’s Mooncake Co!any
1233 Million Fro "here)
• 4ersonal sa'ings
• Faily and friends
5555555555555555555555555555555555555
• -oan fro a /ank
•4ri'ate in'estors
•Go !u/lic66
7/21/2019 Class 01 -- Introduction to Managerial Accounting Course
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Hayley’s Mooncake Co!any
Going 4u/lic66
Ho( can Hayley
con'ince strangersto in'est
1233 illion
in her ooncakeco!any)
7/21/2019 Class 01 -- Introduction to Managerial Accounting Course
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Hayley’s Mooncake Co!any
Going 4u/lic66
•"ithout 7,-IA&-,
FINANCIA-$TAT,M,NT$+
she can’t0
7/21/2019 Class 01 -- Introduction to Managerial Accounting Course
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Hayley’s Mooncake Co!any
Financial $tateents
• "hat do these strangers (ant tokno( a/out Hayley’s *nances)
• Note: t this !oint" it #ould be a%le%&s 'nancial ()N * remember" sheis +ust tr%ing to start her moonca,e com!an%-
• -ist of resources ando/ligations
• Ho( uch oney doesthe /usiness ake)
7/21/2019 Class 01 -- Introduction to Managerial Accounting Course
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Financial
Accounting• &alance $heet –-ist of resources ando/ligations
• Incoe $tateent –Ho( uch oney doesthe /usiness ake)
7/21/2019 Class 01 -- Introduction to Managerial Accounting Course
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Manageent 8 Financial Accounting
The Case of Wal-Mart
• Wal-Mart’s net sales for the scal year ended January 31, 2015 were $485!2 "#ll#on h#s #s a*nancial accounting nu/er he nu%"er #sthe su% of all sales #n all stores #n allde&art%ents for all of the days #n the scal yearended January 31, 2014
•
'ow, #%a(#ne that you are the ch#ef e)ecut#*eo+cer ./ of Wal-Mart #st 23 additionalthings a"out th#s $485 "#ll#on nu%"er that youwould l#e to now
7/21/2019 Class 01 -- Introduction to Managerial Accounting Course
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Internal %ecision Making
"al#Mart’s $ales
%a(#ne that you run Wal-Mart#st 23 additional things a"out
th#s $485 "#ll#on sales nu%"erthat you would l#e to now20900;0<0
=0>0?0@0230
7/21/2019 Class 01 -- Introduction to Managerial Accounting Course
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Internal %ecision Making
"al#Mart’s $ales
• .)a%&les – &y store+ /y country+ /y region
– &y de!artent clothing+ en’s clothing+ etc0B
– &y s!eci*c ite
– &y !hysical location in the store
– &y season cliate
– &y day of the (eek
– &y tie of day
– &y national local ad ca!aign – &y !ayent ethod
– &y deogra!hics of /uyer
7/21/2019 Class 01 -- Introduction to Managerial Accounting Course
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The T(o 4riary Areas of Accounting
Financial 8 Managerial
• Mana(er#al ccount#n( #s the (ather#n(and analys#s of #nfor%at#on for the &ur&oseof internal decision aking – %,TAI-,% data
– Intended for !eo!le IN$I%, the /usiness (ho are aking %AI-D decisions0
• 6#nanc#al ccount#n( #s the (ather#n(,re&ort#n(, and analys#s of #nfor%at#on&r#%ar#ly for the "enet of eEternal users such as #n*estors and cred#tors – $UMMA7D data
– Intended for !eo!le OUT$I%, the /usiness (ho are aking OCCA$IONA-decisions0
7/21/2019 Class 01 -- Introduction to Managerial Accounting Course
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Financial Accounting
Ho( Are Financial Accounting%ata Used)
• Credit analysis
• &ank loan contracts
•
7egulatory o'ersight• aluation of in'estentsassets
7/21/2019 Class 01 -- Introduction to Managerial Accounting Course
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Managerial Accounting
Ho( Are Managerial Accounting%ata Used)
• 4roduct costs
• &reake'en analysis
•
&udgeting• 4erforance e'aluation
• Outsource !roduction)
• Add a !roduct line)• &uy a ne( /uilding)
7/21/2019 Class 01 -- Introduction to Managerial Accounting Course
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Decision Making
Using Management Accounting Data
7/21/2019 Class 01 -- Introduction to Managerial Accounting Course
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%&ortant 7uest#on
• "hat is your -,A$Tfa'orite !lace to eat on
ca!us)))• "hich !lace akes the-,A$T aount of oneyand should /e closed)))
7/21/2019 Class 01 -- Introduction to Managerial Accounting Course
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Costs and Internal %ecision Making
Ukrainian 7estaurant)
Dou (ant to o!en arestaurant ser'ing
Ukrainian food at -G> – !lo'
– !eleni
–
/lack Ukrainian /readCan a Ukrainian restaurantake oney)
7/21/2019 Class 01 -- Introduction to Managerial Accounting Course
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Costs and Internal %ecision Making
Ukrainian 7estaurant)Monthly rent includes eui!ent 8 furnitureB 12<+333
Monthly anager’s salary 193+333
Monthly insurance+ utilities+ etc0 1;+333
$er'er and cook costs 1? !er ealFood aterial costs 123 !er eal
$elling !rice 13 !er eal
• Dou !lan to /e o!en 9< days each onth0
• A arket sur'ey indicates that 23+333 !eo!le in yourarea are interested in eating Ukrainian food an a'erageof once e'ery siE onths0
7/21/2019 Class 01 -- Introduction to Managerial Accounting Course
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Costs and Internal %ecision Making
Ukrainian 7estaurant)&efore doing soe calculations (ith thesenu/ers+ consider the follo(ing uestion0
Ho( often do entre!reneurs gather datalike these &,FO7, starting their /usiness)
Ans(er: Not oftenenough0
7/21/2019 Class 01 -- Introduction to Managerial Accounting Course
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Costs and Internal %ecision Making
Ukrainian 7estaurant)20The !rice of each eal is 130 After !aying for
the sta cost and cost of the food+ ho( uch ofthis 13 (ill you get to kee!)
90"hat are the total costs you ha'e to !ay each
onth+ (hether you ha'e any custoers or not)0Ho( any custoers ust you ha'e each onth
to !ay for your J*Eed costs)K
;0According to your arket sur'ey+ (hat is your
MALIMUM nu/er of custoers !er onth)<0 $hould you o!en the restaurant)
7/21/2019 Class 01 -- Introduction to Managerial Accounting Course
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Costs and Internal %ecision Making
Ukrainian 7estaurant)20The !rice of each eal is 130 After !aying
for the sta cost and cost of the food+ ho(uch of this 13 (ill you get to kee!)
Meal 4rice 13
$ta costs ?B
Food costs 23B
7eainder 129
7/21/2019 Class 01 -- Introduction to Managerial Accounting Course
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Costs and Internal %ecision Making
Ukrainian 7estaurant)90"hat are the total costs you ha'e to !ay
each onth+ (hether you ha'e anycustoers or not)
-G> 7ent 12<+333
Manager’s salary 93+333
Insurance+ utilities+ etc0 ;+333
Total 1@+333
7/21/2019 Class 01 -- Introduction to Managerial Accounting Course
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Costs and Internal %ecision Making
Ukrainian 7estaurant)0 Ho( any custoers ust you ha'e each
onth to !ay for your J*Eed costsK)
JFiEedK costs !er onth 1@+333
Contri/ution argin
!er eal 129
&reake'en custoers
!er onth +9<3
7/21/2019 Class 01 -- Introduction to Managerial Accounting Course
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Costs and Internal %ecision Making
Ukrainian 7estaurant);0 According to your arket sur'ey+ (hat is
your MALIMUM nu/er of custoers !eronth)
23+333 interested eaters
E 9 'isits !er year
5 93+333 Ukrainian food eaters !er year
29 onths !er year52+==> MALIMUM eaters !er MONTH
7/21/2019 Class 01 -- Introduction to Managerial Accounting Course
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Costs and Internal %ecision Making
Ukrainian 7estaurant)<0 $hould you o!en the restaurant)
&reake'en !er onth 5 +9<3custoers
Market sie !er onth 5 2+==>custoers
O!en the restaurant)
7/21/2019 Class 01 -- Introduction to Managerial Accounting Course
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Costs and Internal %ecision Making
Ukrainian 7estaurant)
<0 $hould you o!en the restaurant)
Are there any things in thenu/ers that (e can change)
– 4rice of eal)
– Managers’ salary)
%o (e eE!ect arket conditions to
change o'er tie) – Gro(th in the arket as !eo!le hear
a/out our Ukrainian food)
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Ho( does this class
(ork)• Attendance – ,'ery Thursday+ MAN%ATO7D
• in this roo
•
at this tie – In the $ylla/us+ class !eriods are
la/eled:• 7,UI7,%
• O4TIONA- e'ery Tuesday+ =! in -TPB
• Materials – My,ducator Q Access it online0
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Ho( does this class
(ork)• uies – of the – Ra'ors: 4re#class aB+ !ost#class /B+
My,ducator O!tional %ay ui – A-- uies are taken (ithin the
My,ducator online learning tool – A-- UISS,$ A7, FO7 DOU7 47ACTIC,
ON-D•
Q No grade + /ut soe !artici!ation !oints0• ,Eas
– 9 idters and a co!rehensi'e *nal
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7u#: o*era(e ;eta#ls /&t#onal ;ay .)a%&le
• ui 9 co'ers aterial fro Class 39+ an O4TIONA- class day0
• $tudy the follo(ing odules in My,ducator To!ic 9 Cost Flo(s and&usiness OrganiationsB
• 21 he 6low of <roducts and osts #n Manufactur#n( 6#r%s
• 22 ccount#n( for /*erhead
•
23 he ost of =oods Manufactured >chedule• Co!lete the follo(ing 4ractice 4ro/les in My,ducator To!ic 9
Cost Flo(s and &usiness OrganiationsB0
• .)erc#se 22 6low of Manufactur#n( osts
• .)erc#se 23 ss#(n#n( Manufactur#n( osts to Jo"s
• .)erc#se 24 naly:#n( Manufactur#n( osts
•
.)erc#se 2? &&ly#n( Manufactur#n( /*erhead• .)erc#se 31 ss#(n#n( Manufactur#n( /*erhead to Jo"s
• .)erc#se 32 otal Manufactur#n( osts and ost of =oods Manufactured
• .)erc#se 33 otal Manufactur#n( osts, ost of =oods Manufactured, andost of =oods >old
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7u#: o*era(e ;eta#ls @eAu#red ;ay .)a%&le
a 47,#classui for Class3
ui a co'ers aterial that should /e co!leted in !re!aration forClass 39+ an IN#C-A$$ day0•$tudy the follo(ing odule in My,ducator To!ic 2 ManageentAccounting and Cost Conce!tsB0•20 Managerial Accounting Terinology•$tudy the follo(ing 4ractice 4ro/les and solutionsB in My,ducatorTo!ic 2 Manageent Accounting and Cost Conce!tsB0•4ractice ,Eercise ? FiEed Costs and aria/le CostsB•4ractice ,Eercise @ 4roduct and 4eriod CostsB•
4ractice ,Eercise 23 Ty!es of 4roduct CostsB•4ractice ,Eercise 29 %irect and Indirect CostsB•4ractice ,Eercise 2 %ierential Costs and $unk CostsB•4ractice ,Eercise 2; Out#of#4ocket Costs and O!!ortunity CostsB•,Eercise 9< C##4 AnalysisB•,Eercise 9> 4roduct CostingB
/ 4O$T#classui for Class39
• &ased on in#class acti'ities
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Ho( does this class
(ork)• Teaching Assistant TAB hel! – Hel! 'ia eail
– One#on#one hel! . for free666
• My Oce Hours – &y a!!ointent -$ =3<2B
Managerial Accounting
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Managerial Accounting
My,ducator Online -earning
Tool• TeEt+ 'ideo+ suary 4o(er4ointslides+ !ractice !ro/les
• 7egister ON-IN, using theinstructions in the $ylla/us666
M i l A ti
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Managerial Accounting
Ho( to do terri/le in
this course
FA-- &,HIN%666>tart#n( hursday, there #s a Au#: or e)a%due alost e'ery other day
Dou should !lan on 20< to 903 hours 4,7%AD0VThe House of Cards a!!roach is not
recoended0B
7/21/2019 Class 01 -- Introduction to Managerial Accounting Course
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Today’s Agenda• The Need for Financial Accounting: Hayley’s
Mooncake Co!any
• The Case of "al#Mart’s $ales: %etailedManagerial Accounting Inforation
•
A Co!arison of Financial and ManagerialAccounting
• $i!le &reake'en Analysis: A Ukrainianrestaurant
• Ho( %oes this Class "ork)
– $!eci*cally+ do I ha'e to coe to class)• The My,ducator -earning Tool
• What do I have to do before our next classmeeting?
A i t f N t
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Assignent for NeEt
Tie20 7ead the $ylla/us0
90 7egister for the My,ducator learningtool and get it to (ork0
0 %o the !re!aration for ui 9a seeui Co'erage %etailsB0
;0 TA, ui 9a in My,ducator /y 22:33!00 on Thursday0 V4ractice uiB
<0 Coe /ack neEt tie for in#class grou!acti'ities introducing the i!ortantto!ics in anagerial accounting0
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