This document summarizes the key topics covered in Chapter 1 of the textbook "Cornerstones of Managerial Accounting". It defines managerial accounting as providing internal accounting information to assist with planning, controlling, and decision making. The main differences between managerial and financial accounting are explained. Current focuses of managerial accounting include new costing methods, customer orientation, and supporting total quality management. The role of managerial accountants is to provide supportive information to line managers. Ethical behavior is important for both managers and managerial accountants.
This document discusses cost accounting and its relationship to financial and managerial accounting. It provides information on accountants, accounting differences, product cost information, accounting bodies, ethics, legislation, organizational strategy, structure, and potential ethical issues. Cost accountants provide product cost information to both internal and external users for decision making, planning, and performance evaluation. They must adhere to standards of ethical conduct.
Chapter 01 Introducting to Accounting and Bussines (TM 1).pptrogernapitupulu
The document is a presentation on accounting and business that covers several topics:
1) It describes the nature of business, the role of accounting in providing financial information to internal and external users, and the importance of ethics.
2) It discusses the development of generally accepted accounting principles by organizations like the FASB and IASB to guide financial reporting.
3) It summarizes different forms of business organization like proprietorships, partnerships, corporations, and limited liability companies, and notes their distinguishing characteristics and prevalence.
Here are a few steps you could take as the new manager:
1. Schedule introductory meetings with each employee to learn about their roles and responsibilities, goals, and any ongoing projects or issues.
2. Meet with the previous manager to get a comprehensive overview of department operations, priorities, budgets, and any other important contextual information.
3. Observe group interactions and workflows for a period before initiating any changes to better understand the existing culture and dynamics.
4. Establish an open door policy and listen to employee feedback to identify opportunities for improvement from their perspectives.
5. Develop a transition plan with clear short-term goals and metrics to evaluate early progress and success in the new role.
The key
Management Principles and Practices - Ricky W. Griffin 11th Edition Chapter 01Saif Mahmud
Here are a few steps you could take as the new manager:
1. Schedule introductory meetings with each employee to learn about their roles and responsibilities, goals, and any ongoing projects or issues.
2. Meet with the previous manager to get a comprehensive overview of department operations, priorities, budgets, and any other important contextual information.
3. Observe group interactions and workflows for a period before initiating any changes to better understand the existing culture and dynamics.
4. Establish an open door policy and listen to employee feedback to identify opportunities for improvement from their perspectives.
5. Develop a transition plan with clear short-term goals and metrics to evaluate early progress and success in the new role.
The key
This document provides an overview of key topics in corporate finance and financial management from Chapter 1 of the textbook "Financial Management: Theory and Practice". It discusses the objectives of firms to maximize wealth, forms of business organization from sole proprietorships to corporations, and determinants of a firm's fundamental value including free cash flows, weighted average cost of capital, and discounting future cash flows. It also covers financial securities, markets, institutions and the roles of savers and borrowers of capital.
This document provides an overview of flexible budgets and overhead analysis in managerial accounting. It defines static and flexible budgets, and explains how to prepare flexible budgets before and after the fact. It also describes how to calculate variances for variable and fixed overhead, including spending, efficiency, and volume variances. The goals are to help managers evaluate performance using flexible budgets and understand the meaning of overhead variances.
This document discusses cost accounting and its relationship to financial and managerial accounting. It provides information on accountants, accounting differences, product cost information, accounting bodies, ethics, legislation, organizational strategy, structure, and potential ethical issues. Cost accountants provide product cost information to both internal and external users for decision making, planning, and performance evaluation. They must adhere to standards of ethical conduct.
Chapter 01 Introducting to Accounting and Bussines (TM 1).pptrogernapitupulu
The document is a presentation on accounting and business that covers several topics:
1) It describes the nature of business, the role of accounting in providing financial information to internal and external users, and the importance of ethics.
2) It discusses the development of generally accepted accounting principles by organizations like the FASB and IASB to guide financial reporting.
3) It summarizes different forms of business organization like proprietorships, partnerships, corporations, and limited liability companies, and notes their distinguishing characteristics and prevalence.
Here are a few steps you could take as the new manager:
1. Schedule introductory meetings with each employee to learn about their roles and responsibilities, goals, and any ongoing projects or issues.
2. Meet with the previous manager to get a comprehensive overview of department operations, priorities, budgets, and any other important contextual information.
3. Observe group interactions and workflows for a period before initiating any changes to better understand the existing culture and dynamics.
4. Establish an open door policy and listen to employee feedback to identify opportunities for improvement from their perspectives.
5. Develop a transition plan with clear short-term goals and metrics to evaluate early progress and success in the new role.
The key
Management Principles and Practices - Ricky W. Griffin 11th Edition Chapter 01Saif Mahmud
Here are a few steps you could take as the new manager:
1. Schedule introductory meetings with each employee to learn about their roles and responsibilities, goals, and any ongoing projects or issues.
2. Meet with the previous manager to get a comprehensive overview of department operations, priorities, budgets, and any other important contextual information.
3. Observe group interactions and workflows for a period before initiating any changes to better understand the existing culture and dynamics.
4. Establish an open door policy and listen to employee feedback to identify opportunities for improvement from their perspectives.
5. Develop a transition plan with clear short-term goals and metrics to evaluate early progress and success in the new role.
The key
This document provides an overview of key topics in corporate finance and financial management from Chapter 1 of the textbook "Financial Management: Theory and Practice". It discusses the objectives of firms to maximize wealth, forms of business organization from sole proprietorships to corporations, and determinants of a firm's fundamental value including free cash flows, weighted average cost of capital, and discounting future cash flows. It also covers financial securities, markets, institutions and the roles of savers and borrowers of capital.
This document provides an overview of flexible budgets and overhead analysis in managerial accounting. It defines static and flexible budgets, and explains how to prepare flexible budgets before and after the fact. It also describes how to calculate variances for variable and fixed overhead, including spending, efficiency, and volume variances. The goals are to help managers evaluate performance using flexible budgets and understand the meaning of overhead variances.
This document discusses performance evaluation and decentralization in managerial accounting. It begins with learning objectives about decentralization, methods of performance evaluation like return on investment, and transfer pricing. It then defines decentralization and why companies choose this structure, discussing responsibility centers and how companies create divisions. It explains different types of performance measures like return on investment, residual income, and economic value added. Finally, it discusses transfer pricing and how the internal price charged between divisions affects their costs, revenues, and profits.
- The document discusses the importance of budgeting for businesses. It describes how budgets help with planning, control, and formalizing expectations.
- Budgeting involves both planning for the future and controlling results by comparing actual to planned outcomes. The master budget is the comprehensive financial plan that includes operating and financial budgets.
- Key components of the operating budget include sales, production, materials, labor, overhead, expenses, and inventory budgets. These are used to create a budgeted income statement. The financial budgets include cash flow and projected balance sheet.
111182584X_336067 Strategy in Leadership.pptssuser9e852e1
This document discusses strategic leadership and managing the strategy-making process for competitive advantage. It provides an overview of key concepts like strategy, competitive advantage, and strategic leadership. The summary discusses the primary steps in a strategic planning process, which includes selecting a mission/goals, analyzing external/internal environments, selecting strategies to address opportunities/threats, and implementing strategies. The strategic planning process aims to build on strengths and address weaknesses to achieve competitive advantage.
This document discusses strategic leadership and managing the strategy-making process for competitive advantage. It provides an overview of key concepts like strategy, competitive advantage, and strategic leadership. The summary is:
Strategic leadership involves managing a company's strategy-making process to create competitive advantage and increase shareholder value. This involves pursuing strategies that improve profitability and ensure profits grow over rivals. The strategic planning process includes analyzing internal strengths/weaknesses and external opportunities/threats, then selecting strategies to take advantage of opportunities and counter threats. The goal is strategies that build on strengths and correct weaknesses.
The document discusses strategic leadership and managing the strategy-making process. It defines key terms like strategy, core competencies, competitive advantage, and strategic competitiveness. It explains that a strategy creates value for customers and a competitive advantage when it is valuable, rare, costly to imitate, and nonsubstitutable. It also outlines the major components of the strategic planning process, including developing a mission and goals, and analyzing internal strengths and weaknesses as well as external opportunities and threats.
The document discusses the balanced scorecard, a management tool that provides stakeholders with a comprehensive measure of an organization's progress toward strategic goals. It balances financial and non-financial measures across short and long-term perspectives. The balanced scorecard translates strategy into objectives and measures across four perspectives: financial, customer, internal processes, and learning and growth. It helps communicate and align strategic initiatives while providing feedback for strategic learning.
Organizational behavior is the study of human behavior in organizational settings, the interface between human behavior and the organization, and the organization itself. It helps managers understand behaviors, interactions, and the environment to effectively manage people. Key perspectives include systems theory, contingency frameworks, and an interactionalist view of how people and situations mutually influence each other. Applying organizational behavior principles can help managers achieve individual, group, and organizational goals to ensure effectiveness.
The document discusses asset management strategies and frameworks. It describes how asset management has evolved from primarily maintenance to a more proactive approach focused on cost savings, profitability, service levels, safety, and CSR. It notes that while effective asset management provides benefits, it can be complex and requires buy-in from senior management and different stakeholders. The document then introduces ISO 55000 as an international standard that provides an "out of the box" framework for asset management, including establishing objectives, plans, and continual improvement processes.
This chapter overview discusses key topics in corporate finance including business organization, maximizing shareholder wealth, determinants of firm value, financial markets and institutions. It covers the importance of corporate finance for managers, different forms of business organization, and becoming a public corporation. The chapter also addresses agency problems, how cash flows affect value, weighted average cost of capital, and the capital allocation process.
Presentation by Dawn McGeachy, IFAC SMP Committee Member & Implementation Guidance Task Force Chair, at MIA-IFAC Regional SMP Forum, in Kuala Lumpur, Malaysia, November 18, 2015
Video 4 - Module 4 - Liquidity Ratios.pptxMyname94851
The document discusses liquidity ratios, which measure a company's ability to meet its short-term obligations. It defines two key liquidity ratios: the current ratio, which measures a company's ability to pay off current liabilities with its current assets, and the acid-test ratio, which provides a more stringent measure by excluding less liquid current assets like inventory from the calculation. Both ratios compare current assets to current liabilities, with the current ratio intended to measure basic short-term debt paying ability and the acid-test ratio intended to measure immediate liquidity.
Identify the management goal and organizational structure of the Multinational Corporation (MNC).
Describe the key theories that justify international business.
Explain the common methods used to conduct international business.
Provide a model for valuing the MNC.
This document discusses developing and maintaining long-term customer relationships. It defines customer relationship management (CRM) as aiming to retain valuable customers through understanding their needs and developing long-term relationships. CRM considers stakeholders like customers, employees, and partners. The document contrasts acquiring customers with maintaining existing clients and discusses strategies for developing relationships with consumers and business customers. It emphasizes understanding customer expectations and delivering superior quality and value to improve customer satisfaction and retention.
The Role of White Label Bookkeeping Services in Supporting the Growth and Sca...YourLegal Accounting
Effective financial management is important for expansion and scalability in the ever-changing US business environment. White Label Bookkeeping services is an innovative solution that is becoming more and more popular among businesses. These services provide a special method for managing financial duties effectively, freeing up companies to concentrate on their main operations and growth plans. We’ll look at how White Label Bookkeeping can help US firms expand and develop in this blog.
SATTA MATKA DPBOSS KALYAN MATKA RESULTS KALYAN CHART KALYAN MATKA MATKA RESULT KALYAN MATKA TIPS SATTA MATKA MATKA COM MATKA PANA JODI TODAY BATTA SATKA MATKA PATTI JODI NUMBER MATKA RESULTS MATKA CHART MATKA JODI SATTA COM INDIA SATTA MATKA MATKA TIPS MATKA WAPKA ALL MATKA RESULT LIVE ONLINE MATKA RESULT KALYAN MATKA RESULT DPBOSS MATKA 143 MAIN MATKA KALYAN MATKA RESULTS KALYAN CHART INDIA MATKA KALYAN SATTA MATKA 420 INDIAN MATKA SATTA KING MATKA FIX JODI FIX FIX FIX SATTA NAMBAR MATKA INDIA SATTA BATTA
SATTA MATKA DPBOSS KALYAN MATKA RESULTS KALYAN CHART KALYAN MATKA MATKA RESULT KALYAN MATKA TIPS SATTA MATKA MATKA COM MATKA PANA JODI TODAY BATTA SATKA MATKA PATTI JODI NUMBER MATKA RESULTS MATKA CHART MATKA JODI SATTA COM INDIA SATTA MATKA MATKA TIPS MATKA WAPKA ALL MATKA RESULT LIVE ONLINE MATKA RESULT KALYAN MATKA RESULT DPBOSS MATKA 143 MAIN MATKA KALYAN MATKA RESULTS KALYAN CHART
Best Competitive Marble Pricing in Dubai - ☎ 9928909666Stone Art Hub
Stone Art Hub offers the best competitive Marble Pricing in Dubai, ensuring affordability without compromising quality. With a wide range of exquisite marble options to choose from, you can enhance your spaces with elegance and sophistication. For inquiries or orders, contact us at ☎ 9928909666. Experience luxury at unbeatable prices.
Tired of chasing down expiring contracts and drowning in paperwork? Mastering contract management can significantly enhance your business efficiency and productivity. This guide unveils expert secrets to streamline your contract management process. Learn how to save time, minimize risk, and achieve effortless contract management.
This document discusses performance evaluation and decentralization in managerial accounting. It begins with learning objectives about decentralization, methods of performance evaluation like return on investment, and transfer pricing. It then defines decentralization and why companies choose this structure, discussing responsibility centers and how companies create divisions. It explains different types of performance measures like return on investment, residual income, and economic value added. Finally, it discusses transfer pricing and how the internal price charged between divisions affects their costs, revenues, and profits.
- The document discusses the importance of budgeting for businesses. It describes how budgets help with planning, control, and formalizing expectations.
- Budgeting involves both planning for the future and controlling results by comparing actual to planned outcomes. The master budget is the comprehensive financial plan that includes operating and financial budgets.
- Key components of the operating budget include sales, production, materials, labor, overhead, expenses, and inventory budgets. These are used to create a budgeted income statement. The financial budgets include cash flow and projected balance sheet.
111182584X_336067 Strategy in Leadership.pptssuser9e852e1
This document discusses strategic leadership and managing the strategy-making process for competitive advantage. It provides an overview of key concepts like strategy, competitive advantage, and strategic leadership. The summary discusses the primary steps in a strategic planning process, which includes selecting a mission/goals, analyzing external/internal environments, selecting strategies to address opportunities/threats, and implementing strategies. The strategic planning process aims to build on strengths and address weaknesses to achieve competitive advantage.
This document discusses strategic leadership and managing the strategy-making process for competitive advantage. It provides an overview of key concepts like strategy, competitive advantage, and strategic leadership. The summary is:
Strategic leadership involves managing a company's strategy-making process to create competitive advantage and increase shareholder value. This involves pursuing strategies that improve profitability and ensure profits grow over rivals. The strategic planning process includes analyzing internal strengths/weaknesses and external opportunities/threats, then selecting strategies to take advantage of opportunities and counter threats. The goal is strategies that build on strengths and correct weaknesses.
The document discusses strategic leadership and managing the strategy-making process. It defines key terms like strategy, core competencies, competitive advantage, and strategic competitiveness. It explains that a strategy creates value for customers and a competitive advantage when it is valuable, rare, costly to imitate, and nonsubstitutable. It also outlines the major components of the strategic planning process, including developing a mission and goals, and analyzing internal strengths and weaknesses as well as external opportunities and threats.
The document discusses the balanced scorecard, a management tool that provides stakeholders with a comprehensive measure of an organization's progress toward strategic goals. It balances financial and non-financial measures across short and long-term perspectives. The balanced scorecard translates strategy into objectives and measures across four perspectives: financial, customer, internal processes, and learning and growth. It helps communicate and align strategic initiatives while providing feedback for strategic learning.
Organizational behavior is the study of human behavior in organizational settings, the interface between human behavior and the organization, and the organization itself. It helps managers understand behaviors, interactions, and the environment to effectively manage people. Key perspectives include systems theory, contingency frameworks, and an interactionalist view of how people and situations mutually influence each other. Applying organizational behavior principles can help managers achieve individual, group, and organizational goals to ensure effectiveness.
The document discusses asset management strategies and frameworks. It describes how asset management has evolved from primarily maintenance to a more proactive approach focused on cost savings, profitability, service levels, safety, and CSR. It notes that while effective asset management provides benefits, it can be complex and requires buy-in from senior management and different stakeholders. The document then introduces ISO 55000 as an international standard that provides an "out of the box" framework for asset management, including establishing objectives, plans, and continual improvement processes.
This chapter overview discusses key topics in corporate finance including business organization, maximizing shareholder wealth, determinants of firm value, financial markets and institutions. It covers the importance of corporate finance for managers, different forms of business organization, and becoming a public corporation. The chapter also addresses agency problems, how cash flows affect value, weighted average cost of capital, and the capital allocation process.
Presentation by Dawn McGeachy, IFAC SMP Committee Member & Implementation Guidance Task Force Chair, at MIA-IFAC Regional SMP Forum, in Kuala Lumpur, Malaysia, November 18, 2015
Video 4 - Module 4 - Liquidity Ratios.pptxMyname94851
The document discusses liquidity ratios, which measure a company's ability to meet its short-term obligations. It defines two key liquidity ratios: the current ratio, which measures a company's ability to pay off current liabilities with its current assets, and the acid-test ratio, which provides a more stringent measure by excluding less liquid current assets like inventory from the calculation. Both ratios compare current assets to current liabilities, with the current ratio intended to measure basic short-term debt paying ability and the acid-test ratio intended to measure immediate liquidity.
Identify the management goal and organizational structure of the Multinational Corporation (MNC).
Describe the key theories that justify international business.
Explain the common methods used to conduct international business.
Provide a model for valuing the MNC.
This document discusses developing and maintaining long-term customer relationships. It defines customer relationship management (CRM) as aiming to retain valuable customers through understanding their needs and developing long-term relationships. CRM considers stakeholders like customers, employees, and partners. The document contrasts acquiring customers with maintaining existing clients and discusses strategies for developing relationships with consumers and business customers. It emphasizes understanding customer expectations and delivering superior quality and value to improve customer satisfaction and retention.
The Role of White Label Bookkeeping Services in Supporting the Growth and Sca...YourLegal Accounting
Effective financial management is important for expansion and scalability in the ever-changing US business environment. White Label Bookkeeping services is an innovative solution that is becoming more and more popular among businesses. These services provide a special method for managing financial duties effectively, freeing up companies to concentrate on their main operations and growth plans. We’ll look at how White Label Bookkeeping can help US firms expand and develop in this blog.
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SATTA MATKA DPBOSS KALYAN MATKA RESULTS KALYAN CHART KALYAN MATKA MATKA RESULT KALYAN MATKA TIPS SATTA MATKA MATKA COM MATKA PANA JODI TODAY BATTA SATKA MATKA PATTI JODI NUMBER MATKA RESULTS MATKA CHART MATKA JODI SATTA COM INDIA SATTA MATKA MATKA TIPS MATKA WAPKA ALL MATKA RESULT LIVE ONLINE MATKA RESULT KALYAN MATKA RESULT DPBOSS MATKA 143 MAIN MATKA KALYAN MATKA RESULTS KALYAN CHART
Best Competitive Marble Pricing in Dubai - ☎ 9928909666Stone Art Hub
Stone Art Hub offers the best competitive Marble Pricing in Dubai, ensuring affordability without compromising quality. With a wide range of exquisite marble options to choose from, you can enhance your spaces with elegance and sophistication. For inquiries or orders, contact us at ☎ 9928909666. Experience luxury at unbeatable prices.
Tired of chasing down expiring contracts and drowning in paperwork? Mastering contract management can significantly enhance your business efficiency and productivity. This guide unveils expert secrets to streamline your contract management process. Learn how to save time, minimize risk, and achieve effortless contract management.
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The Steadfast and Reliable Bull: Taurus Zodiac Signmy Pandit
Explore the steadfast and reliable nature of the Taurus Zodiac Sign. Discover the personality traits, key dates, and horoscope insights that define the determined and practical Taurus, and learn how their grounded nature makes them the anchor of the zodiac.
The report *State of D2C in India: A Logistics Update* talks about the evolving dynamics of the d2C landscape with a particular focus on how brands navigate the complexities of logistics. Third Party Logistics enablers emerge indispensable partners in facilitating the growth journey of D2C brands, offering cost-effective solutions tailored to their specific needs. As D2C brands continue to expand, they encounter heightened operational complexities with logistics standing out as a significant challenge. Logistics not only represents a substantial cost component for the brands but also directly influences the customer experience. Establishing efficient logistics operations while keeping costs low is therefore a crucial objective for brands. The report highlights how 3PLs are meeting the rising demands of D2C brands, supporting their expansion both online and offline, and paving the way for sustainable, scalable growth in this fast-paced market.
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In this chapter you will:
(1) Explain the meaning of managerial accounting.
(2) Explain the differences between managerial accounting and financial accounting.
(3) Identify and explain the current focus of managerial accounting.
In addition, information presented in Chapter 1 will help you:
(4) Describe the role of managerial accountants in an organization.
(5) Explain the importance of ethical behavior for managers and managerial accountants.
(6) Identify three forms of certification available to managerial accountants.
In this chapter you will:
(1) Explain the meaning of managerial accounting.
(2) Explain the differences between managerial accounting and financial accounting.
(3) Identify and explain the current focus of managerial accounting.
In addition, information presented in Chapter 1 will help you:
(4) Describe the role of managerial accountants in an organization.
(5) Explain the importance of ethical behavior for managers and managerial accountants.
(6) Identify three forms of certification available to managerial accountants.
What is managerial accounting? Quite simply, it is the provision of accounting information for a company’s internal users. Managerial accounting is the firm’s internal accounting system and is designed to support the information needs of managers. Unlike financial accounting, managerial accounting is not bound by any formal criteria such as generally accepted accounting principles (GAAP). Managerial accounting has three broad objectives: (1) To provide information for planning the organization’s actions, (2) To provide information for controlling the organization’s actions, and (3) To provide information for making effective decisions.
What is managerial accounting? Quite simply, it is the provision of accounting information for a company’s internal users. Managerial accounting is the firm’s internal accounting system and is designed to support the information needs of managers. Unlike financial accounting, managerial accounting is not bound by any formal criteria such as generally accepted accounting principles (GAAP). Managerial accounting has three broad objectives: (1) To provide information for planning the organization’s actions, (2) To provide information for controlling the organization’s actions, and (3) To provide information for making effective decisions.
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What constitutes managerial accounting information? In this example, you decide. You are a Costco executive who has been chosen to decide whether or not the company should continue its policy of sourcing its finest coffee from Rwanda. What types of information should you consider as you decide how best to structure and analyze this important long-term strategic decision? What challenges do you expect to face in making this decision?
There are two basic kinds of accounting information systems: financial accounting and managerial accounting. Financial Accounting is primarily concerned with producing information for external users, including investors, creditors, customers, suppliers, government agencies, and labor unions. Financial accounting’s orientation is historical and is used for investment decisions, stewardship evaluation, monitoring activities, and regulatory measures. Financial statements must conform to certain rules and conventions defined by agencies like the Securities and Exchange Commission (SEC), the Financial Accounting Standards Board (FASB), and the International Accounting Standards Board (IASB).
There are two basic kinds of accounting information systems: financial accounting and managerial accounting. Financial Accounting is primarily concerned with producing information for external users, including investors, creditors, customers, suppliers, government agencies, and labor unions. Financial accounting’s orientation is historical and is used for investment decisions, stewardship evaluation, monitoring activities, and regulatory measures. Financial statements must conform to certain rules and conventions defined by agencies like the Securities and Exchange Commission (SEC), the Financial Accounting Standards Board (FASB), and the International Accounting Standards Board (IASB).
Managerial Accounting produces information for internal users, such as managers, executives, and workers. Thus, managerial accounting could be properly called internal accounting, and financial accounting could be called external accounting. Specifically, managerial accounting identifies, collects, measures, classifies, and reports financial and nonfinancial information that is useful to internal users in planning, controlling, and decision making.
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Today’s companies need focused, accurate information on the cost of the products and services they produce. Activity-based costing (ABC) is a more detailed approach to determining the cost of
goods and services. ABC improves costing accuracy by emphasizing the cost of the many activities or tasks that must be done to produce a product or offer a service. Process-value analysis focuses on the way in which companies create value for customers. The objective is to find ways to perform necessary activities more efficiently and to eliminate those that do not create customer value.
Today’s companies need focused, accurate information on the cost of the products and services they produce. Activity-based costing (ABC) is a more detailed approach to determining the cost of
goods and services. ABC improves costing accuracy by emphasizing the cost of the many activities or tasks that must be done to produce a product or offer a service. Process-value analysis focuses on the way in which companies create value for customers. The objective is to find ways to perform necessary activities more efficiently and to eliminate those that do not create customer value.
Customer value is a key focus because firms can establish a competitive advantage by creating better customer value for the same or lower cost than competitors or creating equivalent value for lower cost than that of competitors. Customer value is the difference between what a customer receives and what the customer gives up when buying a product or service.
Effective cost information can help the company identify strategies that increase customer value. This is typically done through a couple of general strategies: (1) Cost Leadership: The objective of the cost leadership strategy is to provide the same or better value to customers at a lower cost than competitors. (2) Superior products through differentiation: A differentiation strategy strives to increase customer value by providing something to customers not provided by competitors.
Successful pursuit of cost leadership and/or differentiation strategies requires an understanding of a firm’s value chain. The value chain is the set of activities required to design, develop, produce, market, and deliver products and services, as well as provide support services to customers.
Successful pursuit of cost leadership and/or differentiation strategies requires an understanding of a firm’s value chain. The value chain is the set of activities required to design, develop, produce, market, and deliver products and services, as well as provide support services to customers.
In managing the value chain, a managerial accountant must understand and measure many functions of the business. Contemporary approaches to costing may include initial design and engineering costs, as well as manufacturing costs, and the costs of distribution, sales, and service.
Continuous improvement is the continual search for ways to increase the overall efficiency and productivity of activities by reducing waste, increasing quality, and managing costs. Managerial accounting information about the costs of products, customers, processes, and other objects of management interest can be the basis for identifying problems and alternative solutions.
Continuous improvement is fundamental for establishing excellence. A philosophy of total quality management, in which manufacturers strive to create an environment that will enable workers to manufacture perfect (zero-defect) products, has replaced the ‘‘acceptable quality’’ attitudes of the past. This emphasis on quality has also created a demand for a managerial accounting system that provides information about quality, including quality cost measurement and reporting for both manufacturing and service industries.
Continuous improvement is the continual search for ways to increase the overall efficiency and productivity of activities by reducing waste, increasing quality, and managing costs. Managerial accounting information about the costs of products, customers, processes, and other objects of management interest can be the basis for identifying problems and alternative solutions.
Continuous improvement is fundamental for establishing excellence. A philosophy of total quality management, in which manufacturers strive to create an environment that will enable workers to manufacture perfect (zero-defect) products, has replaced the ‘‘acceptable quality’’ attitudes of the past. This emphasis on quality has also created a demand for a managerial accounting system that provides information about quality, including quality cost measurement and reporting for both manufacturing and service industries.
For example, many companies attempt to increase organizational value by eliminating wasteful activities that exist throughout the value chain. This has led to a change in accounting, referred to as lean accounting, which organizes costs according to the value chain and collects both financial and nonfinancial information.
A more recent charge of managerial accountants is to help carry out the company’s enterprise risk management (ERM) approach. ERM is a formal way for managerial accountants to identify and respond to the most important threats and business opportunities facing the organization.
For example, many companies attempt to increase organizational value by eliminating wasteful activities that exist throughout the value chain. This has led to a change in accounting, referred to as lean accounting, which organizes costs according to the value chain and collects both financial and nonfinancial information.
A more recent charge of managerial accountants is to help carry out the company’s enterprise risk management (ERM) approach. ERM is a formal way for managerial accountants to identify and respond to the most important threats and business opportunities facing the organization.
Time is a crucial element in all phases of the value chain. World-class firms reduce time to market by compressing design, implementation, and production cycles. These firms deliver products or services quickly by eliminating nonvalue-added time, which is time of no value to the customer (e.g., the time a product spends on the loading dock). Interestingly, decreasing nonvalue-added time appears to go hand in hand with increasing quality.
Improving efficiency is also a vital concern. Both financial and nonfinancial measures of efficiency are needed. Cost is a critical measure of efficiency. For these efficiency measures to be of value, costs must be properly defined, measured, and assigned; furthermore, production of output must be related to the inputs required, and the overall financial effect of productivity changes should be calculated.
The role of managerial accountants in an organization is one of support. They assist those individuals who are responsible for carrying out an organization’s basic objectives. Positions that have direct responsibility for the basic objectives of an organization are referred to as line positions. Positions that are supportive in nature and have only indirect responsibility for an organization’s basic objectives are called staff positions. The controller supervises all accounting functions and reports directly to the general manager and chief operating officer. In larger companies, the controller is separate from the treasury department. The treasurer is responsible for the finance function.
The role of managerial accountants in an organization is one of support. They assist those individuals who are responsible for carrying out an organization’s basic objectives. Positions that have direct responsibility for the basic objectives of an organization are referred to as line positions. Positions that are supportive in nature and have only indirect responsibility for an organization’s basic objectives are called staff positions. The controller supervises all accounting functions and reports directly to the general manager and chief operating officer. In larger companies, the controller is separate from the treasury department. The treasurer is responsible for the finance function.
The objective of profit maximization should be constrained by the requirement that profits be achieved through legal and ethical means. Ethical behavior involves choosing actions that are right, proper, and just. Behavior can be right or wrong; it can be proper or improper; and the decisions we make can be fair or unfair. Companies in business for the long term find that it pays to treat all of their constituents with honesty and loyalty.
To promote ethical behavior by managers and employees, organizations commonly establish standards of conduct referred to as Company Codes of Conduct. A quick review of various corporate codes of conduct shows some common ground. Important parts of corporate codes of conduct are integrity, performance of duties, and compliance with the rule of law. They also uniformly prohibit the acceptance of kickbacks and improper gifts, insider trading, and misappropriation of corporate information and assets.
To promote ethical behavior by managers and employees, organizations commonly establish standards of conduct referred to as Company Codes of Conduct. A quick review of various corporate codes of conduct shows some common ground. Important parts of corporate codes of conduct are integrity, performance of duties, and compliance with the rule of law. They also uniformly prohibit the acceptance of kickbacks and improper gifts, insider trading, and misappropriation of corporate information and assets.
In addition to organizations establishing standards of conduct for their managers and employees, professional associations also establish ethical standards. Both the American Institute of Certified Public Accountants (AICPA) and the Institute of Management Accountants (IMA) have established ethical standards for accountants. Professional accountants are bound by these codes of conduct. Perhaps the biggest challenge with ethical dilemmas is that when they arise, employees frequently do not realize (1) that such a dilemma has arisen or (2) the ‘‘correct’’ action that should be taken to rectify the dilemma.
In addition to organizations establishing standards of conduct for their managers and employees, professional associations also establish ethical standards. Both the American Institute of Certified Public Accountants (AICPA) and the Institute of Management Accountants (IMA) have established ethical standards for accountants. Professional accountants are bound by these codes of conduct. Perhaps the biggest challenge with ethical dilemmas is that when they arise, employees frequently do not realize (1) that such a dilemma has arisen or (2) the ‘‘correct’’ action that should be taken to rectify the dilemma.
The accounting profession offers three major forms of certification to managerial accountants: (1) Certificate in Management Accounting; (2) Certificate in Public Accounting; and (3) Certificate in Internal Auditing. Each certification offers particular advantages to a managerial accountant. All three certifications offer evidence that the holder has achieved a minimum level of professional competence.
The Certificate in Management Accounting is designed to meet the specific needs of managerial accountants. Four areas are emphasized in the qualifying examination for the CMA. They are: economics, finance, and management; financial accounting and reporting; management reporting, analysis; and behavioral issues decision analysis and information systems. The parts of the CMA examination reflect a more interdisciplinary flavor.
The Certificate in Public Accounting is the oldest and most well-known certification in accounting. The purpose of the certificate is to provide minimal professional qualification for external auditors. Only a Certified Public Accountant (CPA) is permitted (by law) to serve as an external auditor. CPAs must pass a national examination and be licensed by the state in which they practice. Although the Certificate in Public Accounting does not have a managerial accounting orientation, many managerial accountants also hold this certificate.
The Certificate in Public Accounting is the oldest and most well-known certification in accounting. The purpose of the certificate is to provide minimal professional qualification for external auditors. Only a Certified Public Accountant (CPA) is permitted (by law) to serve as an external auditor. CPAs must pass a national examination and be licensed by the state in which they practice. Although the Certificate in Public Accounting does not have a managerial accounting orientation, many managerial accountants also hold this certificate.
Internal auditing differs from external auditing and managerial accounting, and many internal auditors felt a need for a specialized certification. The Certified Internal Auditor (CIA) has passed a comprehensive examination designed to ensure technical competence and has two years’ experience.