1 -1 An electronic presentation by Douglas Cloud Pepperdine University.
-
Upload
logan-ramsey -
Category
Documents
-
view
222 -
download
0
Transcript of 1 -1 An electronic presentation by Douglas Cloud Pepperdine University.
![Page 1: 1 -1 An electronic presentation by Douglas Cloud Pepperdine University.](https://reader036.fdocuments.net/reader036/viewer/2022081519/56649ecf5503460f94bdd353/html5/thumbnails/1.jpg)
1 -1
An electronic presentation by Douglas Cloud
Pepperdine University
An electronic presentation by Douglas Cloud
Pepperdine University
![Page 2: 1 -1 An electronic presentation by Douglas Cloud Pepperdine University.](https://reader036.fdocuments.net/reader036/viewer/2022081519/56649ecf5503460f94bdd353/html5/thumbnails/2.jpg)
1 -2
Task Force Clip Art Task Force Clip Art included in this electronic included in this electronic presentation is used with presentation is used with
the permission of New the permission of New Vision Technology of Vision Technology of
Nepean Ontario, Canada.Nepean Ontario, Canada.
![Page 3: 1 -1 An electronic presentation by Douglas Cloud Pepperdine University.](https://reader036.fdocuments.net/reader036/viewer/2022081519/56649ecf5503460f94bdd353/html5/thumbnails/3.jpg)
1 -3
Introduction: Introduction: The Role, The Role,
History, and History, and Direction of Direction of Management Management AccountingAccounting
CHAPTERCHAPTER
![Page 4: 1 -1 An electronic presentation by Douglas Cloud Pepperdine University.](https://reader036.fdocuments.net/reader036/viewer/2022081519/56649ecf5503460f94bdd353/html5/thumbnails/4.jpg)
1 -4
1. Discuss the need for management accounting information.
2. Differentiate between management accounting and financial accounting.
3. Provide a brief historical description of management accounting.
4. Identify the current focus of management accounting.
ObjectivesObjectivesObjectivesObjectives
After studying this After studying this chapter, you should chapter, you should
be able to:be able to:
After studying this After studying this chapter, you should chapter, you should
be able to:be able to:
ContinuedContinuedContinuedContinued
![Page 5: 1 -1 An electronic presentation by Douglas Cloud Pepperdine University.](https://reader036.fdocuments.net/reader036/viewer/2022081519/56649ecf5503460f94bdd353/html5/thumbnails/5.jpg)
1 -5
5. Describe the role of management accountants in an organization.
6. Explain the importance of ethical behavior for managers and management accountants.
7. List three forms of certification available to management accountants.
ObjectivesObjectivesObjectivesObjectives
![Page 6: 1 -1 An electronic presentation by Douglas Cloud Pepperdine University.](https://reader036.fdocuments.net/reader036/viewer/2022081519/56649ecf5503460f94bdd353/html5/thumbnails/6.jpg)
1 -6
1. To provide information for costing out services, products, and other objects of interest to management.
2. To provide information for planning, controlling, evaluating, and continuous improvement.
3. To provide information for decision making.
The managerial accounting system has three broad objectives:
![Page 7: 1 -1 An electronic presentation by Douglas Cloud Pepperdine University.](https://reader036.fdocuments.net/reader036/viewer/2022081519/56649ecf5503460f94bdd353/html5/thumbnails/7.jpg)
1 -7
OutputsOutputsProcessesProcessesInputsInputs
Economic Events
CollectingMeasuring
StoringAnalyzingReportingManaging
Special ReportsProduct Costs
Customer CostsBudgets
Performance ReportsPersonal Communication
UsersUsers
Management Accounting Information System
Management Accounting Information System
![Page 8: 1 -1 An electronic presentation by Douglas Cloud Pepperdine University.](https://reader036.fdocuments.net/reader036/viewer/2022081519/56649ecf5503460f94bdd353/html5/thumbnails/8.jpg)
1 -8
The Management Process is defined by the following activities:
Planning
Controlling
Decision Making
Planning requires setting objectives and identifying methods to achieve those objectives.
Management ProcessManagement Process
![Page 9: 1 -1 An electronic presentation by Douglas Cloud Pepperdine University.](https://reader036.fdocuments.net/reader036/viewer/2022081519/56649ecf5503460f94bdd353/html5/thumbnails/9.jpg)
1 -9
The Management Process is defined by the following activities: Controlling is
the managerial activity of monitoring a plan’s implementation and taking corrective action as needed.
Planning
Controlling
Decision Making
Management ProcessManagement Process
![Page 10: 1 -1 An electronic presentation by Douglas Cloud Pepperdine University.](https://reader036.fdocuments.net/reader036/viewer/2022081519/56649ecf5503460f94bdd353/html5/thumbnails/10.jpg)
1 -10
The Management Process is defined by the following activities:
Planning
Controlling
Decision Making
Control is usually achieved with the use of feedback.
Management ProcessManagement Process
![Page 11: 1 -1 An electronic presentation by Douglas Cloud Pepperdine University.](https://reader036.fdocuments.net/reader036/viewer/2022081519/56649ecf5503460f94bdd353/html5/thumbnails/11.jpg)
1 -11
Feedback is information that can be used to
evaluate or correct the steps being taken to implement a plan.
Feedback is information that can be used to
evaluate or correct the steps being taken to implement a plan.
Management ProcessManagement Process
![Page 12: 1 -1 An electronic presentation by Douglas Cloud Pepperdine University.](https://reader036.fdocuments.net/reader036/viewer/2022081519/56649ecf5503460f94bdd353/html5/thumbnails/12.jpg)
1 -12
The Management Process is defined by the following activities:
Decision making is the process of choosing among competing alternatives.
Planning
Controlling
Decision Making
Management ProcessManagement Process
![Page 13: 1 -1 An electronic presentation by Douglas Cloud Pepperdine University.](https://reader036.fdocuments.net/reader036/viewer/2022081519/56649ecf5503460f94bdd353/html5/thumbnails/13.jpg)
1 -13
Differentiate Between Management Accounting and
Financial Accounting
![Page 14: 1 -1 An electronic presentation by Douglas Cloud Pepperdine University.](https://reader036.fdocuments.net/reader036/viewer/2022081519/56649ecf5503460f94bdd353/html5/thumbnails/14.jpg)
1 -14
Management AccountingManagement AccountingManagement AccountingManagement Accounting Financial AccountingFinancial AccountingFinancial AccountingFinancial Accounting
1. Internally focused 1. Externally focused
![Page 15: 1 -1 An electronic presentation by Douglas Cloud Pepperdine University.](https://reader036.fdocuments.net/reader036/viewer/2022081519/56649ecf5503460f94bdd353/html5/thumbnails/15.jpg)
1 -15
Management accounting focuses on providing
information for internal users.
Targeted UsersTargeted Users
![Page 16: 1 -1 An electronic presentation by Douglas Cloud Pepperdine University.](https://reader036.fdocuments.net/reader036/viewer/2022081519/56649ecf5503460f94bdd353/html5/thumbnails/16.jpg)
1 -16
ABC Company Annual Report
Financial accounting focuses
on provided information for external users.
Financial accounting focuses
on provided information for external users.
Targeted UsersTargeted Users
![Page 17: 1 -1 An electronic presentation by Douglas Cloud Pepperdine University.](https://reader036.fdocuments.net/reader036/viewer/2022081519/56649ecf5503460f94bdd353/html5/thumbnails/17.jpg)
1 -17
Management AccountingManagement AccountingManagement AccountingManagement Accounting Financial AccountingFinancial AccountingFinancial AccountingFinancial Accounting
1. Internally focused 1. Externally focused
2. No mandatory rules 2. Must follow externally imposed rules
![Page 18: 1 -1 An electronic presentation by Douglas Cloud Pepperdine University.](https://reader036.fdocuments.net/reader036/viewer/2022081519/56649ecf5503460f94bdd353/html5/thumbnails/18.jpg)
1 -18
Restrictions on Inputs and ProcessesRestrictions on Inputs and ProcessesRestrictions on Inputs and ProcessesRestrictions on Inputs and Processes
Management accounting is not subject to the requirements of generally accepted accounting
principles.
Management accounting is not subject to the requirements of generally accepted accounting
principles.
Financial accounting reporting must follow the accounting procedures set
by the SEC and the FASB.
Financial accounting reporting must follow the accounting procedures set
by the SEC and the FASB.
![Page 19: 1 -1 An electronic presentation by Douglas Cloud Pepperdine University.](https://reader036.fdocuments.net/reader036/viewer/2022081519/56649ecf5503460f94bdd353/html5/thumbnails/19.jpg)
1 -19
Management AccountingManagement AccountingManagement AccountingManagement Accounting Financial AccountingFinancial AccountingFinancial AccountingFinancial Accounting
1. Internally focused 1. Externally focused
2. No mandatory rules 2. Must follow externally imposed rules
3. Financial and nonfinancial informa-tion; subjective information possible
3. Objective financial information
![Page 20: 1 -1 An electronic presentation by Douglas Cloud Pepperdine University.](https://reader036.fdocuments.net/reader036/viewer/2022081519/56649ecf5503460f94bdd353/html5/thumbnails/20.jpg)
1 -20
Types of Information
The restrictions imposed on financial accounting tend to
produce objective and verifiable financial information.
The restrictions imposed on financial accounting tend to
produce objective and verifiable financial information.
For management accounting, the financial or nonfinancial
information may be much more subjective in nature.
For management accounting, the financial or nonfinancial
information may be much more subjective in nature.
![Page 21: 1 -1 An electronic presentation by Douglas Cloud Pepperdine University.](https://reader036.fdocuments.net/reader036/viewer/2022081519/56649ecf5503460f94bdd353/html5/thumbnails/21.jpg)
1 -21
Management AccountingManagement AccountingManagement AccountingManagement Accounting Financial AccountingFinancial AccountingFinancial AccountingFinancial Accounting
1. Internally focused 1. Externally focused
2. No mandatory rules 2. Must follow externally imposed rules
3. Financial and nonfinancial informa-tion; subjective information possible
3. Objective financial information
4. Emphasis on the future 4. Historical orientation
![Page 22: 1 -1 An electronic presentation by Douglas Cloud Pepperdine University.](https://reader036.fdocuments.net/reader036/viewer/2022081519/56649ecf5503460f94bdd353/html5/thumbnails/22.jpg)
1 -22
TimeTime OrientationOrientationTimeTime OrientationOrientation
Management accounting strongly
emphasizes providing information about
future events.
![Page 23: 1 -1 An electronic presentation by Douglas Cloud Pepperdine University.](https://reader036.fdocuments.net/reader036/viewer/2022081519/56649ecf5503460f94bdd353/html5/thumbnails/23.jpg)
1 -23
Financial accounting records and reports events that have already
happened.
TimeTime OrientationOrientationTimeTime OrientationOrientation
![Page 24: 1 -1 An electronic presentation by Douglas Cloud Pepperdine University.](https://reader036.fdocuments.net/reader036/viewer/2022081519/56649ecf5503460f94bdd353/html5/thumbnails/24.jpg)
1 -24
Management AccountingManagement AccountingManagement AccountingManagement Accounting Financial AccountingFinancial AccountingFinancial AccountingFinancial Accounting
1. Internally focused 1. Externally focused
2. No mandatory rules 2. Must follow externally imposed rules
3. Financial and nonfinancial informa-tion; subjective information possible
3. Objective financial information
4. Emphasis on the future 4. Historical orientation5. Internal evaluation and
decisions based on very detail information
5. Information about the firm as a whole
![Page 25: 1 -1 An electronic presentation by Douglas Cloud Pepperdine University.](https://reader036.fdocuments.net/reader036/viewer/2022081519/56649ecf5503460f94bdd353/html5/thumbnails/25.jpg)
1 -25
Management accounting provides
measures and internal reports used the
evaluate performance of entities, product lines,
departments, and managers.
Degree of AggregationDegree of AggregationDegree of AggregationDegree of Aggregation
![Page 26: 1 -1 An electronic presentation by Douglas Cloud Pepperdine University.](https://reader036.fdocuments.net/reader036/viewer/2022081519/56649ecf5503460f94bdd353/html5/thumbnails/26.jpg)
1 -26
Financial accounting focuses
on overall firm performance.
Degree of AggregationDegree of AggregationDegree of AggregationDegree of Aggregation
![Page 27: 1 -1 An electronic presentation by Douglas Cloud Pepperdine University.](https://reader036.fdocuments.net/reader036/viewer/2022081519/56649ecf5503460f94bdd353/html5/thumbnails/27.jpg)
1 -27
Management AccountingManagement AccountingManagement AccountingManagement Accounting Financial AccountingFinancial AccountingFinancial AccountingFinancial Accounting
1. Internally focused 1. Externally focused
2. No mandatory rules 2. Must follow externally imposed rules
3. Financial and nonfinancial informa-tion; subjective information possible
3. Objective financial information
4. Emphasis on the future 4. Historical orientation5. Internal evaluation and
decisions based on very detail information
5. Information about the firm as a whole
6. Broad, multidisciplinary 6. More self-contained
![Page 28: 1 -1 An electronic presentation by Douglas Cloud Pepperdine University.](https://reader036.fdocuments.net/reader036/viewer/2022081519/56649ecf5503460f94bdd353/html5/thumbnails/28.jpg)
1 -28
Management accounting is much broader than financial accounting.
Management accounting is much broader than financial accounting.
It includes aspects of managerial economics, industrial engineering,
and management science.
It includes aspects of managerial economics, industrial engineering,
and management science.
BreadthBreadthBreadthBreadth
![Page 29: 1 -1 An electronic presentation by Douglas Cloud Pepperdine University.](https://reader036.fdocuments.net/reader036/viewer/2022081519/56649ecf5503460f94bdd353/html5/thumbnails/29.jpg)
1 -29 Historical Description ofManagement Accounting
1880 - 1925 Most of the product-costing and internal accounting procedures used in this century were developed
1925 Emphasis of inventory costing for external reporting
1950s/60s Effort to improve the managerial usefulness of traditional cost systems
1980s/90s Significant efforts have been made to radically change the nature and practice of management accounting
![Page 30: 1 -1 An electronic presentation by Douglas Cloud Pepperdine University.](https://reader036.fdocuments.net/reader036/viewer/2022081519/56649ecf5503460f94bdd353/html5/thumbnails/30.jpg)
1 -30
Current Focus of Management AccountingCurrent Focus of Management Accounting
Activity-Based ManagementActivity-Based ManagementActivity-Based ManagementActivity-Based Management
Activity-based management is a system wide, integrated approach that focuses
management’s attention on activities with the objective of improving customer value and
the resulting profit.
![Page 31: 1 -1 An electronic presentation by Douglas Cloud Pepperdine University.](https://reader036.fdocuments.net/reader036/viewer/2022081519/56649ecf5503460f94bdd353/html5/thumbnails/31.jpg)
1 -31
Current Focus of Management AccountingCurrent Focus of Management Accounting
Customer OrientationCustomer OrientationCustomer OrientationCustomer Orientation
Customer value is the difference between what the customer receives (customer
satisfaction) and what the customer gives up (customer sacrifice).
What is received is called the total product.
![Page 32: 1 -1 An electronic presentation by Douglas Cloud Pepperdine University.](https://reader036.fdocuments.net/reader036/viewer/2022081519/56649ecf5503460f94bdd353/html5/thumbnails/32.jpg)
1 -32
Current Focus of Management AccountingCurrent Focus of Management Accounting
Strategic PositioningStrategic PositioningStrategic PositioningStrategic Positioning
Strategic cost management is the use of cost data to develop and identify superior strategies that
will produce a sustainable competitive advantage.
Strategies:1) Cost leadership
2) Superior products through differentiation
![Page 33: 1 -1 An electronic presentation by Douglas Cloud Pepperdine University.](https://reader036.fdocuments.net/reader036/viewer/2022081519/56649ecf5503460f94bdd353/html5/thumbnails/33.jpg)
1 -33
Current Focus of Management AccountingCurrent Focus of Management Accounting
Value-Chain FrameworkValue-Chain FrameworkValue-Chain FrameworkValue-Chain Framework
The internal value chain is the set of activities required to design, develop, produce, market,
and deliver products and services to customers.
The industrial value chain is the linked set of value-creating activities from basic raw
materials to the disposal to the final products by end-use customers.
![Page 34: 1 -1 An electronic presentation by Douglas Cloud Pepperdine University.](https://reader036.fdocuments.net/reader036/viewer/2022081519/56649ecf5503460f94bdd353/html5/thumbnails/34.jpg)
1 -34
SupermarketsSupermarkets
Value Chain: Apple Industry
Planting and Planting and CultivatingCultivating
HarvestingHarvesting
Distribution of Distribution of ApplesApples
Applesauce Applesauce ProductionProduction
Applesauce Applesauce DistributionDistribution
Firm B
Firm C
Firm A
Product Disposal
End-Use Customer
![Page 35: 1 -1 An electronic presentation by Douglas Cloud Pepperdine University.](https://reader036.fdocuments.net/reader036/viewer/2022081519/56649ecf5503460f94bdd353/html5/thumbnails/35.jpg)
1 -35
Managing the value chain means that a management accountant
must understand many functions of the business, from
manufacturing to marketing.
Managing the value chain means that a management accountant
must understand many functions of the business, from
manufacturing to marketing.
![Page 36: 1 -1 An electronic presentation by Douglas Cloud Pepperdine University.](https://reader036.fdocuments.net/reader036/viewer/2022081519/56649ecf5503460f94bdd353/html5/thumbnails/36.jpg)
1 -36
The philosophy of total quality management is to
manufacture perfect products.
The philosophy of total quality management is to
manufacture perfect products.
This emphasis on quality has created a demand for management accounting systems that provide
financial and nonfinancial information about quality.
This emphasis on quality has created a demand for management accounting systems that provide
financial and nonfinancial information about quality.
![Page 37: 1 -1 An electronic presentation by Douglas Cloud Pepperdine University.](https://reader036.fdocuments.net/reader036/viewer/2022081519/56649ecf5503460f94bdd353/html5/thumbnails/37.jpg)
1 -37
The role of The role of management management
accountants in an accountants in an organization is organization is one of support.one of support.
The role of The role of management management
accountants in an accountants in an organization is organization is one of support.one of support.
![Page 38: 1 -1 An electronic presentation by Douglas Cloud Pepperdine University.](https://reader036.fdocuments.net/reader036/viewer/2022081519/56649ecf5503460f94bdd353/html5/thumbnails/38.jpg)
1 -38 Partial Organization Chart, Manufacturing Company
PresidentPresident
Production Production Vice PresidentVice President
Line Function
Financial Financial Vice PresidentVice President
Staff Function
Production Production SupervisorSupervisor
Machining Machining ForemanForeman
Assembly Assembly ForemanForeman
ControllerController TreasurerTreasurer
Internal Internal AuditAudit CostCost FinancialFinancial SystemsSystems
TaTaxx
![Page 39: 1 -1 An electronic presentation by Douglas Cloud Pepperdine University.](https://reader036.fdocuments.net/reader036/viewer/2022081519/56649ecf5503460f94bdd353/html5/thumbnails/39.jpg)
1 -39
Ethical BehaviorEthical
Behavior
Michael Josephson’s* Ten Ethical Values:Honesty
Integrity
Promise keeping
Fidelity
Fairness
Caring for others
Respect for others
Responsible citizenship
Pursuit of excellence
Accountability
*Michael Josephson, “Teaching Ethical Decision Making and Principled Reasoning”
![Page 40: 1 -1 An electronic presentation by Douglas Cloud Pepperdine University.](https://reader036.fdocuments.net/reader036/viewer/2022081519/56649ecf5503460f94bdd353/html5/thumbnails/40.jpg)
1 -40
CMA: One of the main purposes of the CMA was to establish management accounting as a recognized, professional discipline, separate from the profession of public accounting.
CPA: The responsibility of a CPA is to provide assurance concerning the reliability of financial statements.
CIA: The focus of the CIA is to recognize competency in internal auditing rather than external auditing as with the CPA.
Professional CertificationsProfessional Certifications
![Page 41: 1 -1 An electronic presentation by Douglas Cloud Pepperdine University.](https://reader036.fdocuments.net/reader036/viewer/2022081519/56649ecf5503460f94bdd353/html5/thumbnails/41.jpg)
1 -41
The CMAThe CMA
Four areas emphasized on the exam:1) Economics, finance, and management
2) Financial accounting and reporting
3) Management report, analysis, and behavioral issues
4) Decision analysis and information systems
![Page 42: 1 -1 An electronic presentation by Douglas Cloud Pepperdine University.](https://reader036.fdocuments.net/reader036/viewer/2022081519/56649ecf5503460f94bdd353/html5/thumbnails/42.jpg)
1 -42
The EndThe EndThe EndThe End
Chapter OneChapter One
![Page 43: 1 -1 An electronic presentation by Douglas Cloud Pepperdine University.](https://reader036.fdocuments.net/reader036/viewer/2022081519/56649ecf5503460f94bdd353/html5/thumbnails/43.jpg)
1 -43