Introduction to Cost and Management Accounting, Accounting Step-by-Step by Mike Werner
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- čas přidán 29. 06. 2024
- Introduction to Cost and Management Accounting - Accounting Step-by-Step by Mike Werner
In this video, we introduce Management Accounting. Sometimes management accounting is called managerial accounting or cost accounting.
Management accounting provides information to company managers and employees. Unlike financial accounting information, which is prepared for outside investors, creditors and others outsiders, management accounting information is prepared for insides, that is, it’s prepared for managers and other employees of an organization.
The video is a general introduction to cost/management/managerial accounting and covers material presented in the first chapter of most cost and management accounting textbooks.
The video compares management accounting and financial accounting with respect to their purposes, primary users, historical/future orientation, regulations, timeliness and level of detail. The video introduces ways management accounting can help managers with decision making, planning, control, performance evaluation and encouraging performance. The video also introduces where accounting fits into the organizational structure with respect to line/staff positions and the functions of the Chief Financial Officer (CFO), controller and treasurer. The value chain and how it relates to product costs is also introduced
![[Cost Accounting and Control] Lecture 01 - Introduction to Cost Accounting](http://i.ytimg.com/vi/hpYBmdeQLpM/mqdefault.jpg)
Excellent instructor
Sir, thank you thank you thank!! Your channel explain everything in detail and voice is very clear, pleasant, and calm. I don’t know why you are no famous yet in CZcams!
Hi Leslie. Thank you, thank you, thank you for your positive feedback. I am so very happy you found the videos helpful. With your help and the help of other viewers, perhaps I will be famous on CZcams some day. Hope so! Thanks again and very best regards, Mike Werner
I’m takingCost/ Management accounting course … and it’s so confusing. Thanks to your videos it’s more understandable!!!
me as well
needs proper notes and step by step tutoring
I'm thinking of doing Financial Accounting next and your channel has sparked that interest more. I had fear that I will fail but with so much information like this I know is doable. Thank you🙏
I am sorry for this late reply and I apologizes for not seeing your comment earlier. Thank you so much for the very nice comment and encouragement! I hope you did take the financial accounting course and hope you get a great grade. If you did well, perhaps consider accounting and becoming a CPA for your career choice. There a so many opportunities in accounting to work in any industry imaginable. The opportunities are endless. Everyone needs an accountant, every business or organization needs an accountant, and there are so many opportunities available for even to the most prestigious CPA firms. Thank you! I am very happy the video was helpful. Thank you for your comment and for viewing my video. Very best regards, Mike. (Again, sorry about the late reply.)
excellent -clear effective
Thank you so much for the kind words! And thank you for tuning into the channel!
Thank soo much, that was really greatly appreciated helpful lecture. God bless you and your knowledge 🙏
Thank you so for the very nice comment and encouragement. I am very happy the video was helpful. Thank you for viewing my video. a God bless and very best regards, Mike.
Thank you for the introduction to management accounting?
Your most welcome! Thank you for the comment and for watching the video!
@@accountingstepbystep2229 Thanks!
Thank you 🙏
Hi Daniel. You're most welcome! Thank you for watching my videos and thank you for your comment! Best regards, Mike Werner
Thanks you for this wonderful introduction
Thank you so much for the kind words! You're quite welcome!
You are welcome. Am a Ugandan doing CPA. How should I excel in this course
@@kayizasteven7536 Hi Kayiza. To excel in your courses, of course, the CPA requires dedication and study. Accounting is not something you learn about as you go through your every day life, it requires study. But once you take the accounting courses, you will have knowledge that others seldom have. It sets you apart from the rest. With this in mind, I might suggest that you become excited and motivated to learn as much as you can. When you actually want to learn, when the subject is important to you, learning, studying becomes more of a pleasure that hard work. You might say, but Werner, it's just accounting! But the reality is that accounting is the source of information used for many, many decision situations and accounting information really drives business and business decisions. The more you know about this information system, the more successful you will be as an accountant, or more importantly, in business in general. By learning as much as you can in your accounting courses, you are setting yourself up for a very bright future no matter what you do in life. I wish you the very best of luck and I thank you for your comments and for viewing my videos. Best regards, Mike Werner
@@accountingstepbystep2229 . Thanks Mr Mike for your piece of advice. May God bless you.
@@kayizasteven7536 You are most welcome! Please keep in touch! Very best regards, Mike Werner
Thank you
Dear Mbulelo. You are most welcome! Thank you for watching my videos and best regards, Mike Werner
Thank u!!!🙏🙏
I am so sorry I did not respond earlier to your comment! I missed seeing it until now and I apologize. Thank you so much for your comment and encouragement. It truly means a lot to me and I am so happy the video was helpful. Many thanks and very best regards, Mike
Could you clarify regarding information discussed in value chain:
1. for a product in the market, are all activities priced into the product? i.e is the price of the product inclusive of all activities in the value chain?
2. Why is that for product cost, the price of production only considered in financial accounting?
Hi Masterpiece, Well, financial and even managerial accounting are far from perfect. As you mention, there are various costs in the value chain, including research and development, product and process design, the cost of manufacturing the product, marketing and sales, product delivery, and product support. All of these costs are closely related to the product and are necessary. However, in financial accounting, only the cost of acquiring the product (invoice cost of the product or raw material for a manufacturer), the cost of brining the product into the company's place of business (freight-in) and the cost to get the product ready to sell, which for a retailer is minimal, but for a manufacturer is extensive, including direct labor cost of manufacturing the product and all the cost of operating the factory, which is often called manufacturing overhead. Once the product is ready to sell, no other cost are added to the cost of the product or treated as product (inventoriable) cost. Marketing, selling, distribution cost (freight out), and product support are all treated as period cost, not product cost. So, it can be difficult to determine the actual profitability of particular products. So again, financial accounting is not perfect because product cost only includes the cost of getting the product and getting it ready to sell and excludes other value chain costs associated with the product. Because financial accounting is so important and can be a focus of many companies, management accounting often follows financial accounting's lead and excludes the various value chain costs as well. So your question is a good one and quite on point. It is likely that the reason the other value chain costs are not included would be that research and development costs often do not result in successful products, so to be conservative, instead of adding these costs to inventory and expensing them as products are sole, they are expenses as incurred. The same holds true with marketing and selling costs, sometimes these result in sales, sometime not, so instead of adding them to inventory and expensing them as products are sole, they are expenses as incurred. Regarding freight out cost, some companies, not many, but some like Target include these cost as product cost and their cost of goods sold. Most simply include freight out cost as a period cost and expense the cost as incurred and make little or no attempt to attribute it to individual products. Product support costs are generally estimated and accrued, if material in amount, but for financial accounting are not attributed to individual products. But, for management accounting it would certainly be a good idea to attribute the costs to individual products to monitor the support cost required for various products, looking for the need for product or process improvements to keep these costs under control. I hope this information is helpful and I think you for you brilliant and on-point question regarding the inherent shortcomings of financial and perhaps managerial accounting. Very best regards, Mike