Bài giảng Managerial Accounting - Chapter 1: The Changing Role of Managerial Accounting in a Dynamic Business Environment

The Changing Role of Managerial Accounting in a Dynamic Business EnvironmentChapter 1Copyright © 2014 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.Managerial accounting is the process of IdentifyingMeasuring AnalyzingInterpretingCommunicating informationDefine Managerial Accounting1-*Managing Resources, Activities, and PeopleAn organization . . .Acquires ResourcesHires PeopleOrganized setof activitiesDecisionMakingPlanningDirectingControlling1-*How Managerial Accounting Adds Value to the OrganizationProviding information for decision making and planning.Assisting managers in directing and controlling activities.Motivating managers and other employees towards organization’s goals.Measuring performance of subunits, activities, managers, and other employees.Assessing the organization’s competitive position.1-*Managerial versus Financial AccountingAccounting System(accumulates financial andmanagerial accounting data in the cost accounting system)Managerial AccountingInformation for decisionmaking, planning, and controlling an organization’soperations.Financial AccountingPublished financialstatements and otherfinancial reports.InternalUsersExternalUsers1-*Line and Staff PositionsA line position is directly involved in achieving the basic objectives of an organization.Example: A production supervisor in a manufacturing plant.A staff position supports and assists line positions.Example: A cost accountant in the manufacturing plant.1-*Controller The chief managerial and financial accountant is responsible for:Supervising accounting personnel. Preparation of information and reports, managerial and financial.Analysis of accounting information.Planning and decision making.1-*Treasurer Responsible for raising capital and safeguarding the organization’s assets.Supervises relationships with financial institutions.Work with investors and potentialinvestors. Manages investments.Establishes credit policies.Manages insurance coverage1-*Internal Auditor Responsible for reviewing accounting procedures, records, and reports in both the controller’s and the treasurer’s area of responsibility.Expresses an opinion to topmanagement regarding theeffectiveness of theorganization’s accountingsystem.1-*ProductDesignResearchandDevelopmentStrategic Cost Management and the Value ChainSecuring rawmaterials andother resourcesProductionMarketingDistributionCustomerServiceStart1-*CapacityTheoretical Capacity is the upper limit on the amount of goods or services if everything works perfectly.Practical capacity allows for normal occurrences such as cash register downtime and cashier fatigue or illness.1-*Cost Management SystemsObjectivesMeasure the cost of resources consumed.Identify and eliminate non-value-added costs.CostManagementSystem1-*Cost Management SystemsObjectivesDetermine efficiency and effectiveness of major activities.Identify and evaluate new activities that can improve performance.CostManagementSystem1-*Managerial Accounting as a CareerProfessional OrganizationsInstitute of Management Accountants (IMA)PublishesManagementAccountingand researchstudies.AdministersCertifiedManagementAccountantprogramDevelopsStandards ofEthicalConduct forManagementAccountants1-*Ethical Climate of Business The corporate scandals experienced over the last few years have shown us that unethical behavior in business is wrong in a moral sense and can be disastrous in the economy. In addition to Sarbanes-Oxley, there will likely be more reforms in corporate governance and accounting.1-*Professional EthicsCompetenceConfidentialityIntegrityCredibility1-*