Learn the basics of managerial accounting to help you make better organizational decisions.
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- Hi I'm Jim Stice. I'm a professor of accounting at Brigham Young University. This is my brother Kay. - I'm also a professor of accounting at Brigham Young University. In accounting, there are three main topic areas: Financial accounting, managerial accounting, and income taxes. - [Jim] Financial accounting involves the summary reports given to people outside the company. To banks, to investors, to potential investors, and so forth. - [Kay] Income tax accounting involves reports given to well you know to whom those reports are given. - [Jim] In this course, we provide an overview of managerial accounting, which involves the detailed, private, internal reports that are used by managers on a daily basis to make decisions about a company's operations.
- [Kay] We will talk about break even analysis. How many customers need to come to a restaurant each day for the owner to at least break even. - [Jim] We will talk about product costing. If I manufacture wood furniture. How much does it cost me to construct a custom-built oak table? How much for the wood? How much for the skilled labor? And how much for the support, or overhead cost? - [Kay] We will discuss budgeting. In running an operation do you want each day to be an exciting and unpredictable ordeal with no idea of what problems will arise during the day, or do you want to see and solve problems in advance? That's what a budget can do.
- And we will discuss the factors that are important in making long term decisions, such as buying a new machine, or investing in a new product line. - Now, before taking this managerial accounting course you might consider taking our Accounting Fundamentals course. Among other things that course introduces you to the basics of all three types of accounting, managerial, financial, and income taxes. - But with that said, we've designed this managerial accounting course to be self-contained, and we carefully explain any terminology that we use. - [Kay] In short, this is an introductory course with no prior accounting knowledge necessary.
- [Jim] All you need is an interest in making better decisions.
Want to hear more from Jim and Kay? Learn about all three types of accounting—financial, managerial, and income tax—in their Accounting Fundamentals course.
- Planning, controlling, and evaluating costs
- Controlling product flow costs
- Performing CVP analysis
- Understanding cost flows in different industries
- Understanding standard product costing and variances
- Understanding activity-based costing
- Capital budgeting