MBA - Introduction.ppt

ManagerialAccountingandtheBusinessEnvironment,ManagerialAccountingandFinancialAccounting,Managerialaccountingprovidesinformationformanagersofanorganizationwhodirectandcontrolitsoperations.,Financialaccountingprovidesinformationtostockholders,creditorsandotherswhoareoutsidetheorganization.,WorkofManagement,Planning,Controlling,DirectingandMotivating,PlanningandControlCycle,DecisionMaking,FormulatingLong-andShort-TermPlans(Planning),MeasuringPerformance(Controlling),ImplementingthePlans(DirectingandMotivating),ComparingActualtoPlannedPerformance(Controlling),Begin,DifferencesBetweenFinancialandManagerialAccounting,ExpandingRoleofManagerialAccounting,Increasingcomplexityandsizeoforganizations,Rapiddevelopmentandimplementationoftechnology,Regulatoryenvironment,World-widecompetition,Increasedemphasisonquality,Factorsthatincreasetheneedformanagerialaccountinginformation,TheChangingBusinessEnvironment,TheChangingBusinessEnvironment,Just-In-TimeTotalQualityManagementProcessReengineeringTheoryofConstraints,Newtoolsformanagers!,Completeproductsjustintimetoshipcustomers.,Completepartsjustintimeforassemblyintoproducts.,Receivematerialsjustintimeforproduction.,Scheduleproduction.,Just-in-Time(JIT)Systems,Receivecustomerorders.,Flexibleworkforce,Reducedsetuptime,Zeroproductiondefects,KeyElementsforaSuccessfulJITSystem,Improvedplantlayout,JITpurchasingFewer,butmoreultrareliablesuppliers.FrequentJITdeliveriesinsmalllots.Defect-freesupplierdeliveries.,Morerapidresponsetocustomerorders,Lesswarehousespaceneeded,Reducedinventorycosts,Greatercustomersatisfaction,BenefitsofaJITSystem,Doweneedtochangetheplan?,Wherearewe?Wheredowewanttogo?,Howdowestart?,Howarewedoing?,TotalQualityManagement,ProcessReengineering,Theprocessisredesignedtoincludeonlythosestepsthatmakeourproductmorevaluable.,Everystepinthebusinessprocessmustbejustified.,Abusinessprocessisdiagrammedindetail.,ProcessReengineering,Anticipatedresults:Processissimplified.Processiscompletedinlesstime.Costsarereduced.Opportunitiesforerrorsarereduced.,Theprocessisredesignedtoincludeonlythosestepsthatmakeourproductmorevaluable.,Everystepinthebusinessprocessmustbejustified.,Abusinessprocessisdiagrammedindetail.,TheoryofConstraints,Asequentialprocessofidentifyingandremovingconstraintsinasystem.,Restrictionsorbarriersthatimpedeprogresstowardanobjective,InternationalCompetition,Meetingworld-classcompetitiondemandsaworld-classmanagementaccountingsystem.Managersmustmakedecisionstoplan,direct,andcontrolaworld-classorganization.,OrganizationalStructure,Anorganizationisagroupofpeopleunitedforacommonpurpose.,Decentralization,Decentralizationdecisionmaking,Decentralizationdecisionmaking,Decentralizationisthedelegationofdecision-makingauthoritythroughoutanorganization.,LineandStaffRelationships,Linepositionsaredirectlyrelatedtoachievementofthebasicobjectivesofanorganization.Example:Productionsupervisorsinamanufacturingplant.,Staffpositionssupportandassistlinepositions.Example:Costaccountantsinthemanufacturingplant.,TheController,Thechiefaccountantinanorganizationwithresponsibilityfor:Financialplanningandanalysis.Costcontrol.Financialreporting.Accountinginformationsystems.,ImportanceofEthicsinAccounting,Ethicalaccountingpracticesbuildtrustandpromoteloyal,productiverelationshipswithusersofaccountinginformation.Manycompaniesandprofessionalorganizations,suchastheInstituteofManagementAccountants(IMA),havewrittencodesofethicswhichserveasguidesforemployees.,IMACodeofEthicsforManagementAccountants,CompetenceConfidentialityIntegrityObjectivityResolutionofEthicalConflict,IMACodeofEthicsforManagementAccountants,Followapplicablelaws,regulationsandstandards.,Preparecompleteandclearreportsafterappropriateanalysis.,Maintainprofessionalcompetence.,Competence,IMACodeofEthicsforManagementAccountants,Donotdiscloseconfidentialinformationunlesslegallyobligatedtodoso.,Ensurethatsubordinatesdonotdiscloseconfidentialinformation.,Donotuseconfidentialinformationforpersonaladvantage.,Confidentiality,IMACodeofEthicsforManagementAccountants,Avoidconflictsofinterestandadviseothersofpotentialconflicts.,Recognizeandcommunicatepersonalandprofessionallimitations.,Donotsubvertorganizationslegitimateobjectives.,Integrity,IMACodeofEthicsforManagementAccountants,Integrity,Avoidactivitiesthatcouldaffectyourabilitytoperformduties.,Communicateunfavorableaswellasfavorableinformation.,Refrainfromactivitiesthatcoulddiscredittheprofession.,Refusegiftsorfavorsthatmightinfluencebehavior.,IMACodeofEthicsforManagementAccountants,Communicateinformationfairlyandobjectively.,Discloseallinformationthatmightbeusefultomanagement.,ResolutionofEthicalConflictFollowestablishedpolicies.Forunresolvedethicalconflicts:Discusstheconflictwithimmediatesuperior.IfimmediatesuperioristheCEO,considertheboardofdirectorsortheauditcommittee.Exceptwherelegallyprescribed,maintainconfident