Accounting for Decision Making and Control Auburn University：决策与控制会计奥本大学.ppt

Accounting for Decision Making and Control Outline of Chapter 1Introduction Purposes of Managerial Accounting Planning/Decision Making Control Financial vs. Managerial Accounting Design of Accounting System Design and Use of Systems Evolution Example of Decision Making Planning/Decision Making Choosing goals, predicting results under various alternatives, making the decision Examples: Product Management: Add a new product, terminate an existing product line, accept/reject a special order Pricing: Set selling price (profit or cash flow) Cost control: Add equipment, change production process, make or buy (outsource) Control Implementing the action Evaluating the performance of personnel and operations Goal: To ensure that the organization operates in the intended manner Objectives of Managerial Accounting To provide information for decision making To assist in controlling operations To motivate employees toward achieving the organization’s goals To measure the performance of employees or subunits of the organization Distinction Between Financial and Managerial Accounting Financial Accounting Used by shareholders, bondholders, taxing authorities, regulatory bodies, etc. Rule-oriented, general purpose reports Managerial Accounting Used by managers - internal to firm Focuses on the internal needs of managers (planning/decision making, performance evaluation) Design - Foundation Economic perspective Assumptions Self-interested employees - maximize their own self-interest Owners want to maximize firm value Maximizing profits maximizes firm value Goal: To design performance incentives based on accounting measures to motivate employees to take actions that maximize firm value Design - Conflicting Goals Decision Making Want to avoid distorted information Desire estimates to plan future activities Control Need incentives to motivate behavior changes Tendency to ignore information not specifically included in the system Desire to report “good” numbers to satisfy to