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Chapter Summary

Section 18.1: Define Managerial Accounting and Identify the Three Primary Responsibilities of Management​

  • Managerial accounting supports internal decision-making
  • Three primary responsibilities: Planning, Controlling, Decision-Making
  • Planning sets goals and strategies
  • Controlling monitors performance and takes corrective action
  • Decision-Making chooses among alternatives
  • These responsibilities work together in a cycle

Section 18.2: Distinguish between Financial and Managerial Accounting​

  • Financial accounting: External users, historical, regulated, periodic
  • Managerial accounting: Internal users, future-oriented, flexible, as needed
  • Both use same underlying data but serve different purposes
  • Financial accounting ensures compliance; managerial accounting supports decisions
  • Both are important for business success

Section 18.3: Explain the Primary Roles and Skills Required of Managerial Accountants​

  • Roles vary by organization size
  • SMEs often have generalist roles
  • Key skills: Technical, business, soft skills
  • Luxembourg SMEs need PCN, VAT, and multilingual skills
  • Career paths range from entry-level to executive

Section 18.4: Describe the Role of the Institute of Management Accountants and the Use of Ethical Standards​

  • IMA promotes management accounting profession
  • CMA certification provides professional recognition
  • Ethical standards: Honesty, Fairness, Objectivity, Responsibility
  • Ethical standards: Competence, Confidentiality, Integrity, Credibility
  • Ethical decision-making is crucial
  • Key trends: Technology, Globalization, Sustainability, Data-driven decisions, Changing workforce
  • Trends impact cost accounting, performance measurement, planning
  • Luxembourg faces digital transformation, regulatory changes, economic trends
  • Adaptation requires continuous learning and skill development

Section 18.6: Luxembourg SME Management Accounting Needs​

  • Luxembourg SMEs have unique characteristics
  • Key needs: Cost management, Pricing, Budgeting, Performance measurement, Decision support
  • Luxembourg-specific: VAT management, Multilingual operations, Regulatory compliance
  • Tools and resources available: Software, Professional services, Government resources
  • Best practices support success