The Changing Role of Managerial Accounting in a GLOBAL Business Environment
Managerial Accounting and the Business Environment Class One.
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Transcript of Managerial Accounting and the Business Environment Class One.
Managerial Accounting and the Business Environment
Class One
Comparison of Financial and Managerial Accounting
Strategy
A strategyis a “game plan”
that enables a companyto attract customers
by distinguishing itselffrom competitors.
The focal point of acompany’s strategy should
be its target customers.
The focal point of acompany’s strategy should
be its target customers.
Customer Value Propositions
Understand and respond toindividual customer needs.
Understand and respond toindividual customer needs.
CustomerIntimacy
Proposition
OperationalExcellence Proposition
Deliver products and servicesfaster, more conveniently,
and at lower prices.
Deliver products and servicesfaster, more conveniently,
and at lower prices.
ProductLeadership Proposition
Offer higher quality products.Offer higher quality products.
Work of Management
PlanningPlanning
ControllingControlling
Directing and Motivating
Directing and Motivating
Planning
Identifyalternatives.
Identifyalternatives.
Select alternative that does the best job of furtheringorganization’s objectives.
Select alternative that does the best job of furtheringorganization’s objectives.
Develop budgets to guideprogress toward theselected alternative.
Develop budgets to guideprogress toward theselected alternative.
Directing and Motivating
Directing and motivating involves managing day-to-day activities to keep the organization running smoothly. Employee work assignments. Routine problem solving. Conflict resolution. Effective communications.
Controlling
The control function ensuresthat plans are being followed. The control function ensuresthat plans are being followed.
Feedback in the form of performance reportsthat compare actual results with the budgetare an essential part of the control function.
Feedback in the form of performance reportsthat compare actual results with the budgetare an essential part of the control function.
Planning and Control Cycle
DecisionMaking
Formulating long-and short-term plans
(Planning)
Formulating long-and short-term plans
(Planning)
Measuringperformance (Controlling)
Measuringperformance (Controlling)
Implementing plans (Directing and Motivating)
Implementing plans (Directing and Motivating)
Comparing actualto planned
performance (Controlling)
Comparing actualto planned
performance (Controlling)
Begin
Organizational Structure
Board of Directors
President
Sales PersonnelVice President
OperationsChief Financial
Officer
Treasurer Controller
Corporate Organization Chart
Code of Conduct forManagement Accountants
The Institute of Management Accountant’s (IMA) Standards of Ethical Conduct for Practitioners
of Management Accounting and Financial Management have two major parts offering
guidelines for:
Ethical behavior.
Resolution for an ethical conflict.
Ethical Behavior
Four broad areas of responsibility:
• Maintain a high level of professional competence
• Treat sensitive matters with confidentiality• Maintain personal integrity• Be objective in all disclosures
• Follow established policies.
• For unresolved ethical conflicts:
Discuss the conflict with immediate superior.
Make reference to the Sarbanes-Oxley Act passed by Congress in 2002 in part to give legal protection to those reporting corporate misconduct.
Consider the board of directors orthe audit committee.
The last resort is to resign.
Resolution of an Ethical Conflict