mba - introduction(2)

1、Managerial Accounting and the Business Environment,,,Managerial Accounting and Financial Accounting,Managerial accountingprovides informationfor managers of anorganization whodirect and controlits operations.,,Finan

2、cial accountingprovides informationto stockholders,creditors and otherswho are outsidethe organization.,Work of Management,,Planning,Controlling,Directing and Motivating,Planning and Control Cycle,DecisionMaking,,

3、,Formulating Long-andShort-Term Plans (Planning),MeasuringPerformance (Controlling),Implementing the Plans(Directing and Motivating),Comparing ActualtoPlanned Performance (Controlling),Begin,,Differences Between Fi

4、nancial and Managerial Accounting,Expanding Role of Managerial Accounting,Increasing complexity andsize of organizations,Rapid development andimplementation of technology,Regulatoryenvironment,World-widecompetition,I

5、ncreasedemphasison quality,,Factors thatincrease the need formanagerial accountinginformation,The Changing Business Environment,The Changing Business Environment,,Just-In-TimeTotal Quality ManagementProcess Reengi

6、neeringTheory of Constraints,New tools for managers!,Complete productsjust in time toship customers.,Complete partsjust in time forassembly into products.,,Receive materialsjust in time forproduction.,Schedulepro

7、duction.,Just-in-Time (JIT) Systems,Receivecustomerorders.,Flexibleworkforce,Reducedsetup time,Zero productiondefects,Key Elements for a SuccessfulJIT System,Improvedplant layout,JIT purchasingFewer, but more ult

8、rareliable suppliers.Frequent JIT deliveries in small lots.Defect-free supplier deliveries.,More rapidresponse tocustomer orders,Less warehousespace needed,Reducedinventorycosts,Greatercustomersatisfaction,Benef

9、its of a JIT System,Do we need to change the plan?,Where are we?Where do we want to go?,How do we start?,How are we doing?,Total Quality Management,Process Reengineering,,The process isredesigned to includeon

10、ly those steps that makeour product more valuable.,Every step inthe businessprocess mustbe justified.,A business processis diagrammedin detail.,Process Reengineering,,Anticipated results: Process is simplified. P

11、rocess is completed in less time. Costs are reduced. Opportunities for errors are reduced.,The process isredesigned to includeonly those steps that makeour product more valuable.,Every step inthe busines

12、sprocess mustbe justified.,A business processis diagrammedin detail.,,Theory of Constraints,A sequential process of identifying and removing constraints in a system.,Restrictions or barriers that impedeprogress towa

13、rd an objective,International Competition,Meeting world-class competition demands a world-class management accounting system. Managers must make decisions to plan, direct, and control a world-class organization.,Organiz

14、ational Structure,An organization is a group of peopleunited for a common purpose.,Decentralization,,Decentralizationdecision–making,,Decentralizationdecision–making,Decentralization is the delegation of decision-maki

15、ng authority throughout an organization.,Line and Staff Relationships,Line positions are directly related to achievement of the basic objectives of an organization.Example: Production supervisors in a manufacturing pla

16、nt.,Staff positions support and assist line positions.Example: Cost accountants in the manufacturing plant.,The Controller,The chief accountant in an organization with responsibility for:Financial planning and analysis

17、.Cost control. Financial reporting.Accounting information systems.,Importance of Ethicsin Accounting,Ethical accounting practices build trust and promote loyal, productive relationships with users of accounting infor

18、mation.Many companies and professional organizations, such as the Instituteof Management Accountants (IMA),have written codes of ethics whichserve as guides for employees.,IMA Code of Ethics for Management Accountant

19、s,CompetenceConfidentialityIntegrityObjectivityResolution of Ethical Conflict,,IMA Code of Ethics for Management Accountants,,,Follow applicable laws, regulations and standards.,Prepare complete and clear reports aft

20、er appropriate analysis.,Maintain professional competence.,,Competence,,IMA Code of Ethics for Management Accountants,,,Do not disclose confidential information unless legally obligated to do so.,Ensure that subordinates

21、 do not disclose confidential information.,Do not use confidential information for personal advantage.,,Confidentiality,,IMA Code of Ethics for Management Accountants,,,Avoid conflicts of interest and advise others of po

22、tential conflicts.,Recognize and communicate personal and professional limitations.,Do not subvert organization’s legitimate objectives.,,Integrity,,,IMA Code of Ethics for Management Accountants,,,,Integrity,Avoid activ

23、ities that could affect your ability to perform duties.,Communicate unfavorable as well as favorable information.,Refrain from activities that could discredit the profession.,Refuse gifts or favors that might influence

24、behavior.,,,IMA Code of Ethics for Management Accountants,Communicate information fairly and objectively.,Disclose all information that might be useful to management.,Resolution of Ethical ConflictFollow established pol

25、icies.For unresolved ethical conflicts: Discuss the conflict with immediate superior.If immediate superior is the CEO, consider the board of directors or the audit committee. Except where legally prescribed, maintain

26、 confidentiality.,IMA Code of Ethics for Management Accountants,Resolution of Ethical ConflictClarify issues in a confidential discussion withan objective advisor.Consult an attorney as to legal obligations.The last