Lecture 03
This presentation is the property of its rightful owner.
Sponsored Links
1 / 18

Lecture 03 PowerPoint PPT Presentation


  • 88 Views
  • Uploaded on
  • Presentation posted in: General

Lecture 03. Overview of Lecture 02. Theory of Comparative Advantage International Business Methods Business Strategies Business Stakeholders Organizational Goals The Process of Providing Information Purpose of Information The Purpose of Accounting Accounting System Financial Statements

Download Presentation

Lecture 03

An Image/Link below is provided (as is) to download presentation

Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.


- - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - -

Presentation Transcript


Lecture 03

Lecture 03


Overview of lecture 02

Overview of Lecture 02

  • Theory of Comparative Advantage

  • International Business Methods

  • Business Strategies

  • Business Stakeholders

  • Organizational Goals

  • The Process of Providing Information

  • Purpose of Information

  • The Purpose of Accounting

  • Accounting System

  • Financial Statements

  • Managerial Accounting and Financial Accounting


Managing resources activities and people

Managing Resources, Activities and People

  • Decision making

    • Choosing among the available alternatives

  • Planning

    • Developing a detailed financial and operational description of anticipated operations.

  • Directing operational activities

    • Running the organization on a day to day basis

  • Controlling

    • Ensuring that the organization operates in the intended manner and achieves its goals.


How managerial accounting adds value to the organization

How Managerial Accounting Adds Value to the Organization

  • Providing 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 activities, managers, and other employees.

  • Assessing the organization’s competitive position.


Balance scorecard

Balance Scorecard

  • Financial perspective

    • Income from operations

    • Working capital

    • Cash flow from operations

    • Inventory turns

  • Internal operations perspective

    • Reduction in process cycle time

    • Number of engineering changes

    • Capacity utilization

    • Order response time


Balance scorecard1

Balance Scorecard

  • Customer perspective

    • Rank in customer survey

    • Market share

    • Repeat order rate

    • Customer complaints

  • Learning and growth perspective

    • Leadership competence

    • Percentage of patent-protected turnover

    • Training days per employee

    • Quality improvement team participation


Planning and control cycle

Begin

Comparing ActualtoPlanned Performance (Controlling)

Implementing the Plans(Directing and Motivating)

DecisionMaking

MeasuringPerformance (Controlling)

Planning and Control Cycle

Formulating Long-andShort-Term Plans (Planning)


Line and staff positions

Line and Staff Positions

  • Aline 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.


Controller

Controller

The chief managerial and financial accountant responsibility for:

  • Supervising accounting personnel

  • Preparation of information and reports, managerial and financial

  • Analysis of accounting information

  • Planning and decision making


Treasurer

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 coverage


Internal auditor

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 theorganizations accountingsystem.


Location of managerial accountant

Location of Managerial Accountant

  • Organizational chart

    • Line and Staff Position

      • Line position include chairman, president directly responsible for operations regarding good or service

      • Staff position include CFO, VP government relations etc.

    • CFO or Controller

      • Responsible for personnel in accounting department and preparing managerial and financial reports.

    • Treasurer

      • Responsible for raising capital and safeguarding organizational assets.

    • Internal auditor

      • Responsible for reviewing accounting procedure, records and reports in both controller and treasure areas of responsibility.


Location of managerial accountant cont d

Location of Managerial Accountant (cont`d)

  • Cross Functional Deployment

    • Located in staff capacity

    • Work with top management, marketing and sales personnel, design engineers, operations managers, legal experts, quality control personnel and virtually every specialized type of employee.

  • Physical Location

    • Every where in every part of enterprise,

    • Headquarter to place of products and services


Organizational chart

Organizational chart

Board of Directors

Top

management

Chairman and CEO

Vice chairman of Board

Senior Executive Vice President and Chief of Corporate Operations

Executive VP

Executive VP

Executive VP

Executive VP

Staff

Position

ABC Inc

President

Consumer products Chairman & president

Engineering Vice chairman & president

Chairman other country

Operating Units

Operating Units

Operating Units

Operating Units

Line

Position


Major themes in managerial accounting

Major Themes in Managerial Accounting

Behavioral

Issues

Costs and

Benefits

Information

and Incentives

Evolution and

Adaptation

Managerial

Accounting


Lecture 031

Lecture 03

  • Managing Resources, Activities and People

  • How managerial Accounting Adds value

  • Balance Scorecard

  • Planning and Control Cycle

  • Line and Staff Positions

  • Location of Managerial Accountant

  • Organizational chart

  • Major Themes in Managerial Accounting


End of lecture 03

End of Lecture 03


  • Login