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Ch 1: Overview of Managerial Accounting

About This Chapter

Learn accounting from a manager's perspective in our Overview of Managerial Accounting chapter. Our short lessons allow you to learn from professional instructors, and we have self-assessment quizzes to help you track your progress.

Overview of Managerial Accounting - Chapter Summary and Learning Objectives

Using principles of accounting, managers can assess their decisions and create strategic plans that will benefit the company financially. These lessons will also show you how to assess risk and account for ethical and social considerations when making business decisions. In this chapter you'll learn:

  • What are the Generally Accepted Accounting Principles
  • Why managerial accounting is essential for a business
  • How the theory of constraints influences process management
  • What role ethics play in managerial accounting
  • What is social responsibility in the corporate world?
  • The five phases of planning

Lesson Objective
What Is Accounting? - Purpose, Importance & Relationship to Business Understand the importance of accounting in business.
External and Internal Users and Uses of Accounting Analyze internal and external users and uses of accounting.
What Is GAAP? - The Generally Accepted Accounting Principles Analyze the Generally Accepted Accounting Principles and learn about the two groups that establish these principles.
Managerial Accounting Functions Evaluate the need and function of managerial accounting.
Comparing Financial & Managerial Accounting Analyze the differences between financial and managerial accounting.
The Strategic Management ProcessIdentify how risk management can be used to control business risks.
Ways to Manage Risk: Insurable and Uninsurable Risk Examples of risk management techniques.
Process Management: Lean Production Model & Theory of Constraints Understand Lean Production Model and the theory of constraints.
Ethics in Managerial Accounting Understand the role ethics play in managerial accounting.
Social Responsibility in Organizations Learn why it is critical for business to adopt social responsibility.
The Levels of Corporate Social Responsibility Levels of corporate social responsibility.
The Sarbanes Oxley Act Learn the importance of corporate governance.

12 Lessons in Chapter 1: Overview of Managerial Accounting
Test your knowledge with a 30-question chapter practice test
What Is Accounting? - Purpose, Importance & Relationship to Business

1. What Is Accounting? - Purpose, Importance & Relationship to Business

Just as French is considered the language of love, accounting is considered the language of business. In this lesson, you will learn exactly what accounting is. You will also learn the purpose of accounting, why it is important, and how it relates to the business world.

External and Internal Users and Uses of Accounting

2. External and Internal Users and Uses of Accounting

Accounting has many uses. In this lesson, you will learn not only who accounting users are but also what types of accounting information is used. You will also learn the uses of that accounting information.

What Is GAAP? - The Generally Accepted Accounting Principles

3. What Is GAAP? - The Generally Accepted Accounting Principles

Rules and regulations are a part of life for everyone, including those in the accounting industry. In this lesson, you will learn about GAAP standards, what they mean to accounting, and who establishes them.

Managerial Accounting Functions

4. Managerial Accounting Functions

Managerial accounting is used to improve the efficiency of the management process by focusing on management planning, cost controls and financial monitoring to ensure the financial success of departments and the overall company.

Comparing Financial & Managerial Accounting

5. Comparing Financial & Managerial Accounting

This lesson will differentiate between financial and managerial accounting by providing definitions and examples of each. At the end of the lesson, you should be able to correctly determine the roles of financial and managerial accounting.

The Strategic Management Process

6. The Strategic Management Process

We will be reviewing the strategic management process, starting with the four main steps of the process. These steps provide the foundation for understanding strategic management as a whole and will serve you well as you deal with management decision-making situations.

Ways to Manage Risk: Insurable and Uninsurable Risk

7. Ways to Manage Risk: Insurable and Uninsurable Risk

Risks abound in life and in business. However, most risks can be managed. In this lesson, you'll learn about ways to manage risks. You'll also learn the difference between insurable and uninsurable risks. A short quiz follows.

Process Management: Lean Production Model & Theory of Constraints

8. Process Management: Lean Production Model & Theory of Constraints

A company's ability to generate profit depends largely on its ability to manage its costs. In this lesson, you'll learn how the lean production model and theory of constraints can increase profit.

Ethics in Managerial Accounting

9. Ethics in Managerial Accounting

The function of managerial accounting is to provide information to key decision-makers within the organization. A high standard of ethical behavior is expected from those who develop this information.

Social Responsibility in Organizations

10. Social Responsibility in Organizations

Watch this video lesson to learn how companies put into practice their social responsibilities. Learn how a socially responsible company helps the environment, people, and employees along with giving freely to society.

The Levels of Corporate Social Responsibility

11. The Levels of Corporate Social Responsibility

Most companies do not start as socially-responsible companies. In fact, the path to embracing corporate social responsibility consists of four different levels that companies progress through that will benefit their stakeholders.

The Sarbanes Oxley Act

12. The Sarbanes Oxley Act

One of the most important laws governing publicly traded companies is the Sarbanes-Oxley Act of 2002. In this lesson, you'll learn what the law is and some of its most important provisions. You'll also have a chance to take a short quiz.

Chapter Practice Exam
Test your knowledge of this chapter with a 30 question practice chapter exam.
Not Taken
Practice Final Exam
Test your knowledge of the entire course with a 50 question practice final exam.
Not Taken

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