IPE 4439
Principles of Economics
and Cost Accounting
Course Teacher: Sharmin Akter Urmee
Lecturer, Department of MPE
Room No: 111, Old Academic Building
Book Reference
Managerial Accounting by Garrison, Libby, Webb (10th Edition)
CHAPTER 1
Managerial Accounting and
the Business Environment
The Role of the Management Accountant
in Value Creation
Today’s management accountants are expected to
have expertise in
1. Cost management,
2. Performance measurement, and
3. Risk management.
Managerial accounting
The form of accounting concerning providing
information to managers for use in planning and
controlling operations and for decision making.
Need for Managerial
Accounting Information
•Planning
•Directing and motivating
•Controlling, and
•Decision making
Need for Managerial
Accounting Information
• Planning: Plans are often accompanied by a budget. A budget is a
detailed plan for the future that is usually expressed in formal
quantitative terms.
• Directing and Motivating: Managerial accounting data, such as
daily sales reports, are often used in this type of day-to-day
decision making.
• Controlling: Performance reports (Detailed reports prepared on a
periodic basis that compare budgeted data to actual data).
• Decision making: What should we be selling? Whom should we
be serving? How should we execute?
Managerial accounting and Financial accounting