《管理会计》课件全英文Acct_ch1_ManAcct_(Feb_25).ppt

1、Introduction: The Role, History, and Direction of Management Accounting,CHAPTER,Discuss the need for management accounting information. Differentiate between management accounting and financial accounting. Provide a brief historical description of management accounting. Identify the current focus of

2、 management accounting.,Objectives,After studying this chapter, you should be able to:,Continued,5.Describe the role of management accountants in an organization. 6.Explain the importance of ethical behavior for managers and management accountants. 7.List three forms of certification available to ma

3、nagement accountants.,Objectives,1.Legal Firm wants to know COST PER HOUR for each type of Legal service to establish a Billing rate 2.Plant Manager wants to know supplier DEFECT RATES and the effects on PRODUCTION COSTS 3.Software Consultant wants to know why ENGAGEMENT COSTS ran over budget, and w

4、hat CORRECTIVE ACTIONS are needed,Scenarios Page 2 subjective information possible,3.Objective financial information,Types of Information,The restrictions imposed on financial accounting tend to produce objective and verifiable financial information.,For management accounting, the financial or nonfi

5、nancial information may be much more subjective in nature.,Types of Information,The restrictions imposed on financial accounting tend to produce objective and verifiable financial information.,Like, average unit cost, overhead costs, fixed or variable costs, salary / wage costs, or whatever subjecti

6、ve information management needs,Management Accounting,Financial Accounting,1.Internally focused,1.Externally focused,2.No mandatory rules,2.Must follow externally imposed rules,3.Financial and nonfinancial informa-tion; subjective information possible,3.Objective financial information,4.Emphasis on

7、the future,4.Historical orientation,Time Orientation,Management accounting strongly emphasizes providing information about future events.,Financial accounting records and reports events that have already happened.,Time Orientation,Management Accounting,Financial Accounting,1.Internally focused,1.Ext

8、ernally focused,2.No mandatory rules,2.Must follow externally imposed rules,3.Financial and nonfinancial informa-tion; subjective information possible,3.Objective financial information,4.Emphasis on the future,4.Historical orientation,5.Internal evaluation and decisions based on very detail informat

9、ion,5.Information about the firm as a whole,Management accounting provides measures and internal reports used the evaluate performance of entities, product lines, departments, and managers.,Degree of Aggregation,Financial accounting focuses on overall company performance.,Degree of Aggregation,Manag

10、ement Accounting,Financial Accounting,1.Internally focused,1.Externally focused,2.No mandatory rules,2.Must follow externally imposed rules,3.Financial and nonfinancial informa-tion; subjective information possible,3.Objective financial information,4.Emphasis on the future,4.Historical orientation,5

11、.Internal evaluation and decisions based on very detail information,5.Information about the firm as a whole,6.Broad, multidisciplinary,6.More self-contained,Management accounting is much broader than financial accounting.,It includes aspects of managerial economics, industrial engineering, and manag

12、ement science.,Breadth,Historical Description ofManagement Accounting,1880 - 1925Most of the product-costing and internal accounting procedures used in this century were developed 1925Emphasis of inventory costing for external reporting 1950s/60sEffort to improve the managerial usefulness of traditi

13、onal cost systems 1980s/90sSignificant efforts have been made to radically change the nature and practice of management accounting; reduce costs,Current Focus of Management Accounting,Activity-Based Management,Activity-based management is a system wide, integrated approach that focuses managements a

14、ttention on activities with the objective of improving customer value and the resulting profit.,Current Focus of Management Accounting,Customer Orientation,Customer value is the difference between what the customer receives (customer satisfaction) and what the customer gives up (customer sacrifice).

15、,What is received is called the total product.,Current Focus of Management Accounting,Strategic Positioning,Strategic cost management is the use of cost data to develop and identify superior strategies that will produce a sustainable competitive advantage.,Strategies:,Cost leadership provide lowest

16、cost Superior products through differentiation - better products,Current Focus of Management Accounting,Value-Chain Framework,The internal value chain is the set of activities required to design, develop, produce, market, and deliver products and services to customers.,The industrial value chain is

17、the linked set of value-creating activities from basic raw materials to the disposal to the final products by end-use customers.,Example Internal Value Chain,Federal Express delivery versus US Postal Service. FEDEX can deliver packages much faster than regular postal delivery because of their intern

18、al activities (the FEDEX delivery system). This creates VALUE for FEDEX and their customers.,Industrial Value Chain,Creates value from Raw Material to disposal of final product to End User (customer). Focuses on different segments of the chain (from the Internal Chain managed within one Company thro

19、ugh the External Chain to suppliers and customers). This also creates VALUE for the Company (a competitive advantage) and their Customers. Example.,Value Chain: Apple Industry,Managing the value chain means that a management accountant must understand many functions of the businessmanufacturing, mar

20、keting, distribution, customer service.,In other words, the management accountant (you) must understand all the activities of the company, from start to finish.,The philosophy of total quality management is to manufacture perfect products.,The emphasis on quality created a demand for management acco

21、unting systems that provide financial AND nonfinancial information about quality.,The philosophy of total quality management is to manufacture perfect products.,Nonfinancial information can include number of hours, parts, customer responses, floor space, electricity usage, or ANY value that is tryin

22、g to be measured.,The philosophy of total quality management is to manufacture perfect products.,Quality includes elimination of wasteful activities. This includes zero defect manufacturing. It also applies to service industries.,TIME as a Competitive Advantage,Faster is better! Reduce design time,

23、implementation time, production cycle time. Eliminate those Activities that are not needed, that are wasteful Focus on Efficiency (do more with less). How to measure? Must know our Costs, and their relationships to each other Costs must be properly defined, measured and assigned Eliminate Sales Peop

24、le and sell Online!,The role of management accountants in an organization is one of support.,Partial Organization Chart, Manufacturing Company,President,Ethical Behavior,Michael Josephsons* Ten Ethical Values:,Honesty Integrity Promise keeping Fidelity Fairness,Caring for others Respect for others R

25、esponsible citizenship Pursuit of excellence Accountability,*Michael Josephson, “Teaching Ethical Decision Making and Principled Reasoning”,Code of Ethics IMA(Page 19),Competence Confidentiality Integrity Objectivity Resolution of Ethical Conflict,Results of Ethical Behavior,“The Integrity of the Ho

26、nest keeps them on track; But the Deviousness of Crooks brings them to ruin.” Proverbs 11,CMA:One of the main purposes of the CMA was to establish management accounting as a recognized, professional discipline, separate from the profession of public accounting. CPA:The responsibility of a CPA is to provide assurance concerning the reliability of financial statements. CIA:The focus of the CIA is to recognize competency in internal auditing rather than e