introduction to management accounting n.
Download
Skip this Video
Loading SlideShow in 5 Seconds..
Introduction to Management Accounting PowerPoint Presentation
Download Presentation
Introduction to Management Accounting

Loading in 2 Seconds...

play fullscreen
1 / 26

Introduction to Management Accounting - PowerPoint PPT Presentation


  • 272 Views
  • Uploaded on

Introduction to Management Accounting. Introduction to Management Accounting. Chapter 1. Managerial Accounting, the Business Organization, and Professional Ethics. Learning Objective 1. Users of Accounting Information. Management Accounting. Financial Accounting. External Users.

loader
I am the owner, or an agent authorized to act on behalf of the owner, of the copyrighted work described.
capcha
Download Presentation

Introduction to Management Accounting


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
    1. Introduction to Management Accounting

    2. Introduction to Management Accounting Chapter 1 Managerial Accounting, the Business Organization, and Professional Ethics

    3. Learning Objective 1 Users of Accounting Information Management Accounting Financial Accounting External Users Internal managers Investors: Stockholders Day-to-day operating decisions Long-range strategic decisions Creditors: Suppliers Bankers Government Authorities

    4. Decision Making Attention Directing: Compare Actual Results to Expected Scorekeeping: Evaluate Organizational Performance Problem Solving: Assess Possible Courses of Action

    5. Accounting Information System Process of gathering, organizing, and Communicating financial information Financial Statements

    6. Influences on Accounting Systems Generally accepted accounting principles (GAAP) Foreign Corrupt Practices Act Internal controls Sarbanes-Oxley Act Internal auditors Management audits

    7. Learning Objective 2 Sarbanes-Oxley Act In 2002, the Sarbanes-Oxley Act required chief executive officers to sign a statement verifying the accuracy of the company’s financial statements. External auditors must examine and report on the company’s internal control system.

    8. Ethics Reliability Trust Integrity No regulation can be as effective in ensuring reliability as high ethical standards of accountants.

    9. Service and Nonprofit Organizations Service organizations Nonprofit organizations Accounting firms Law firms Real estate firms Banks Hotels Hospitals Schools Libraries Museums Government agencies

    10. Learning Objective 3 Cost-Benefit and Behavioral Considerations Cost-benefit balance Behavioral implications The system must provide accurate, timely budgets and performance reports in a form useful to managers. Weigh estimated costs against probable benefits. Managers must use accounting reports, or the reports create no benefits.

    11. Decision Making Decision making: the purposeful choice from among a set of alternative courses of action designed to achieve some objective. Control: Implementing plans and using feedback to evaluate the attainment of objectives. Planning: Setting objectives and outlining how the objectives will be obtained.

    12. Learning Objective 4 The Nature of Planning and Controlling Management Process Internal Accounting System Corrections and revisions of plans and actions Budgets, Special Reports Other information systems Planning Increase Profitability Customer surveys Competitor analysis Accounting System Advertising impact Control – Actions – Evaluations Performance Reports New items report

    13. Budget and Performance Reports Budget: quantitative expression of a plan of action Performance reports: • compare actual results with budgeted amounts • provide feedback by comparing results with plans • highlight variances Variances: deviations from plans

    14. Performance Reports Mayfair Starbucks Store, March 31, 20X7 BudgetActualVariance Sales $50,000 $50,000 0 Less: Ingredients 22,000 24,500 $2,500 U Store labor 12,000 11,600 400 F Other labor 6,000 6,050 50 U Utilities, etc. 4,500 4,500 0 Total expenses $44,500 $46,650 $2,150 U Operating income $ 5,500 $ 3,350 $2,150 U U= Unfavorable – actual exceeds budget F – Favorable – actual is less than budget.

    15. Product Life Cycle Product life cycle refers to the various stages through which a product passes. No Sales Product Development Low sales  No sales Phase-out Product Sales Growth Introduction to Market Stable Sales Level Mature Market

    16. The Value Chain Research and Development Product And Service Process Design Service Customer Focus Distribution Production Marketing

    17. Learning Objective 5 Management Accountant’s Role as Internal Consultant Collects and compiles information Prepares standardized reports Internal Consultant Interprets and Analyzes information Is Involved In decision making Management

    18. Organizational Authority and Responsibility Line managers: directly involved with making and selling products or services. Staff managers: Advisory – Support line managers. Cross-functional teams: Found in modern, “flatter” organizations; Functional areas work together In decision making process.

    19. Learning Objective 6 Accounting Function Chief Financial Officer (CFO) Treasurer Functions Controller Functions • Provision of capital • Investor relations • Short-term financing • Banking and custody • Credits and collections • Investments • Risk management (insurance) • Planning for control • Reporting and interpreting • Evaluating and consulting • Tax administration • Government reporting • Protection of assets • Economic appraisal

    20. Learning Objective 7 Career Opportunities in Management Accounting The Certified Management Accountant (CMA) • CMAs must pass a four-part examination: • Business Analysis • Management accounting and reporting • Strategic Management, and • 4. Business Applications.

    21. Learning Objective 8 Management Accounting Change Drivers Shift from a manufacturing-based to a service-based economy Increased global competition Advances in technology Changes in business processes

    22. Major Influences on Management Accounting Advances in technology: E-commerce Enterprise resource planning (ERP) Business process reengineering: Just-in-time (JIT) philosophy Lean manufacturing Computer-integrated manufacturing Six sigma

    23. Learning Objective 9 Standards of Ethical Conduct The Institute of Management Accountants (IMA) Statement of Ethical Professional Practice for Management Accounting Members Requires members to adhere to a code of conduct regarding: Competence, Confidentiality, Integrity, and Credibility.

    24. Ethical Dilemmas Managers must choose an alternative and there are: • Significant value conflicts among differing interests. • Real alternatives that are all justifiable, and • Significant consequences on stakeholders in the situation.

    25. Unethical Behavior Temptations Emphasis on short-term results: Pressure to meet expected profit numbers. Ignoring the small stuff: Large misdeeds often result from many small ones. Economic cycles: A downturn market can reveal what an upturn market conceals. Vigilance in all stages of economic markets maintains high ethical standards. Accounting rules Avoid creative interpretations of the rules. Practice full and fair disclosure to convey company’s performance.

    26. The End End of Chapter 1