《管理会计》课件全英文Acctch1ManAcctFeb

Introduction:TheRole,History,andDirectionofManagementAccountingCHAPTERDiscusstheneedformanagementaccountinginformation.Differentiatebetweenmanagementaccountingandfinancialaccounting.Provideabriefhistoricaldescriptionofmanagementaccounting.Identifythecurrentfocusofmanagementaccounting.ObjectivesAfterstudyingthischapter,youshouldbeableto:Continued5. Describetheroleofmanagementaccountantsinanorganization.6. Explaintheimportanceofethicalbehaviorformanagersandmanagementaccountants.7. Listthreeformsofcertificationavailabletomanagementaccountants.Objectives1.

LegalFirmwantstoknowCOSTPERHOURforeachtypeofLegalservicetoestablishaBillingrate2.

PlantManagerwantstoknowsupplierDEFECTRATESandtheeffectsonPRODUCTIONCOSTS3.

SoftwareConsultantwantstoknowwhyENGAGEMENTCOSTSranoverbudget,andwhatCORRECTIVEACTIONSareneededScenarios–Page2&34.CruiseLineCEOwantstoknowtheVARIABLE

COSTEFFECTonprofitsHospitalAdministratorwantstofurtherREDUCEWASTE(costs)withinthehospitalBankMangerwantstomakelong-termdecisionsaboutFEE-BASEDPRODUCTSScenarios–Page2&31. Toprovideinformationforcostingoutservices,products,andotherobjectsofinteresttomanagement.2. Toprovideinformationforplanning,controlling,evaluating,andcontinuousimprovement.3. Toprovideinformationfordecisionmaking.Themanagerialaccountingsystemhasthreebroadobjectives:OutputsProcessesInputsEconomicEventsCollectingMeasuringStoringAnalyzingReportingManagingSpecialReportsProductCostsCustomerCostsBudgetsPerformanceReportsPersonalCommunicationUsersManagementAccountingInformationSystem

TheManagementProcessisdefinedbythefollowingactivities:PlanningControllingDecisionMakingPlanningrequiressettingobjectivesandidentifyingmethodstoachievethoseobjectives.ManagementProcess

TheManagementProcessisdefinedbythefollowingactivities:Controllingisthemanagerialactivityofmonitoringaplan’simplementationandtakingcorrectiveactionasneeded.PlanningControllingDecisionMakingManagementProcess

TheManagementProcessisdefinedbythefollowingactivities:PlanningControllingDecisionMakingControlisusuallyachievedwiththeuseoffeedback.ManagementProcessFeedbackisinformationthatcanbeusedtoevaluateorcorrectthestepsbeingtakentoimplementaplan.ManagementProcess

TheManagementProcessisdefinedbythefollowingactivities:Decisionmakingistheprocessofchoosingamongcompetingalternatives.PlanningControllingDecisionMakingManagementProcessNextClass–February28(Thursday)BringYourBUSINESSARTICLEHOMEWORK Page22–CompleteQuestions21,24,27,28,and30 Page25–Problem1-7,1,2,3 Page25–Problem1-9DifferentiateBetweenManagementAccountingandFinancialAccountingManagementAccountingFinancialAccounting1. Internallyfocused1. ExternallyfocusedManagementaccountingfocusesonprovidinginformationforinternalusers.TargetedUsers-ProductionReportsCostReportsExpenseReportsSalesbyProductDepartmentalReports-Etc.,Etc.TargetedUsersABCCompanyAnnualReportFinancialaccountingfocusesonprovidedinformationforexternalusers.TargetedUsersABCCompanyAnnualReport-BalanceSheet,IncomeStatement,CashflowStmt-ForInvestors,Government,Banks,Etc.TargetedUsersManagementAccountingFinancialAccounting1. Internallyfocused1. Externallyfocused2. Nomandatoryrules2. MustfollowexternallyimposedrulesRestrictionsonInputsandProcessesManagementaccountingisnotsubjecttotherequirementsofgenerallyacceptedaccountingprinciples.FinancialaccountingreportingmustfollowtheaccountingproceduressetbytheSECandtheFASB.ManagementAccountingFinancialAccounting1. Internallyfocused1. Externallyfocused2. Nomandatoryrules2. Mustfollowexternallyimposedrules3. Financialandnonfinancialinforma-tion;subjectiveinformationpossible3. ObjectivefinancialinformationTypesofInformationTherestrictionsimposedonfinancialaccountingtendtoproduceobjectiveandverifiablefinancialinformation.Formanagementaccounting,thefinancialornonfinancialinformationmaybemuchmoresubjectiveinnature.TypesofInformationTherestrictionsimposedonfinancialaccountingtendtoproduceobjectiveandverifiablefinancialinformation.Like,averageunitcost,overheadcosts,fixedorvariablecosts,salary/wagecosts,orwhateversubjectiveinformationmanagementneedsManagementAccountingFinancialAccounting1. Internallyfocused1. Externallyfocused2. Nomandatoryrules2. Mustfollowexternallyimposedrules3. Financialandnonfinancialinforma-tion;subjectiveinformationpossible3. Objectivefinancialinformation4. Emphasisonthefuture4. HistoricalorientationTime

OrientationManagementaccountingstronglyemphasizesprovidinginformationaboutfutureevents.Financialaccountingrecordsandreportseventsthathavealreadyhappened.Time

OrientationManagementAccountingFinancialAccounting1. Internallyfocused1. Externallyfocused2. Nomandatoryrules2. Mustfollowexternallyimposedrules3. Financialandnonfinancialinforma-tion;subjectiveinformationpossible3. Objectivefinancialinformation4. Emphasisonthefuture4. Historicalorientation5. Internalevaluationanddecisionsbasedonverydetailinformation5. InformationaboutthefirmasawholeManagementaccountingprovidesmeasuresandinternalreportsusedtheevaluateperformanceofentities,productlines,departments,andmanagers.DegreeofAggregationFinancialaccountingfocusesonoverallcompanyperformance.DegreeofAggregationManagementAccountingFinancialAccounting1. Internallyfocused1. Externallyfocused2. Nomandatoryrules2. Mustfollowexternallyimposedrules3. Financialandnonfinancialinforma-tion;subjectiveinformationpossible3. Objectivefinancialinformation4. Emphasisonthefuture4. Historicalorientation5. Internalevaluationanddecisionsbasedonverydetailinformation5. Informationaboutthefirmasawhole6. Broad,multidisciplinary6. Moreself-containedManagementaccountingismuchbroaderthanfinancialaccounting.Itincludesaspectsofmanagerialeconomics,industrialengineering,andmanagementscience.BreadthHistoricalDescriptionof

ManagementAccounting1880-1925 Mostoftheproduct-costingandinternalaccountingproceduresusedinthiscenturyweredeveloped1925 Emphasisofinventorycostingforexternalreporting1950s/60s Efforttoimprovethemanagerialusefulnessoftraditionalcostsystems1980s/90s Significanteffortshavebeenmadetoradicallychangethenatureandpracticeofmanagementaccounting;reducecostsCurrentFocusofManagementAccountingActivity-BasedManagementActivity-basedmanagementisasystemwide,integratedapproachthatfocusesmanagement’sattentiononactivitieswiththeobjectiveofimprovingcustomervalueandtheresultingprofit.CurrentFocusofManagementAccountingCustomerOrientationCustomervalueisthedifferencebetweenwhatthecustomerreceives(customersatisfaction)andwhatthecustomergivesup(customersacrifice).Whatisreceivediscalledthetotalproduct.CurrentFocusofManagementAccountingStrategicPositioningStrategiccostmanagementistheuseofcostdatatodevelopandidentifysuperiorstrategiesthatwillproduceasustainablecompetitiveadvantage.Strategies:Costleadership–providelowestcostSuperiorproductsthroughdifferentiation-betterproductsCurrentFocusofManagementAccountingValue-ChainFrameworkTheinternalvaluechainisthesetofactivitiesrequiredtodesign,develop,produce,market,anddeliverproductsandservicestocustomers.Theindustrialvaluechainisthelinkedsetofvalue-creatingactivitiesfrombasicrawmaterialstothedisposaltothefinalproductsbyend-usecustomers.Example–InternalValueChainFederalExpressdeliveryversusUSPostalService.FEDEXcandeliverpackagesmuchfasterthanregularpostaldeliverybecauseoftheirinternalactivities(theFEDEXdeliverysystem).ThiscreatesVALUEforFEDEXandtheircustomers….IndustrialValueChainCreatesvaluefromRawMaterialtodisposaloffinalproducttoEndUser(customer).Focusesondifferentsegmentsofthechain(fromtheInternalChain–managedwithinoneCompanythroughtheExternalChaintosuppliersandcustomers).ThisalsocreatesVALUEfortheCompany(acompetitiveadvantage)andtheirCustomers.Example…..SupermarketsValueChain:AppleIndustryPlantingandCultivatingHarvestingDistributionofApplesApplesauceProductionApplesauceDistributionFirmBFirmCFirmAProductDisposalEnd-UseCustomerManagingthevaluechainmeansthatamanagementaccountantmustunderstandmanyfunctionsofthebusiness…manufacturing,marketing,distribution,customerservice.Inotherwords,themanagementaccountant(you)mustunderstandalltheactivitiesofthecompany,fromstarttofinish.Thephilosophyoftotalqualitymanagementistomanufactureperfectproducts.Theemphasisonqualitycreatedademandformanagementaccountingsystemsthatprovidefinancial

AND

nonfinancialinformationaboutquality.Thephilosophyoftotalqualitymanagementistomanufactureperfectproducts.Nonfinancial

informationcanincludenumberofhours,parts,customerresponses,floorspace,electricityusage,orANYvaluethatistryingtobemeasured.Thephilosophyoftotalqualitymanagementistomanufactureperfectproducts.Qualityincludeseliminationofwastefulactivities.Thisincludeszerodefectmanufacturing.Italsoappliestoserviceindustries.TIMEasaCompetitiveAdvantageFasterisbetter!!Reducedesigntime,implementationtime,productioncycletime….EliminatethoseActivitiesthatarenotneeded,thatarewastefulFocusonEfficiency(domorewithless).Howtomeasure??MustknowourCosts,andtheirrelationshipstoeachotherCostsmustbeproperlydefined,measuredandassignedEliminateSalesPeopleandsellOnline!!Theroleofmanagementaccountantsinanorganizationisoneofsupport.PartialOrganizationChart,ManufacturingCompanyPresidentProductionVicePresidentLineFunctionFinancialVicePresidentStaffFunctionProductionSupervisorMachiningForemanAssemblyForemanControllerTreasurerBudgetCostFinancialSystemsTaxEthicalBehaviorMichaelJosephson’s*TenEthicalValues:HonestyIntegrityPromisekeepingFidelityFairnessCaringforothersRespectforothersResponsiblecitizenshipPursuitofexcellenceAccountability*MichaelJosephson,“TeachingEthicalDecisionMakingandPrincipledReasoning”CodeofEthics–IMA

(Page19)CompetenceConfidentialityIntegrityObjectivityResolutionofEthicalConflictResultsof

EthicalBehavior“TheIntegrityoftheHonestkeepsthemontrack;ButtheDeviousnessofCrooksbringsthemtoruin.”

Proverbs11CMA: O