1、Managerial Accounting and the Business Environment,Managerial Accounting and Financial Accounting,Managerial accounting provides information for managers of an organization who direct and control its operations.,Financial accounting provides information to stockholders, creditors and others who are
2、outside the organization.,Work of Management,Planning,Controlling,Directing and Motivating,Planning and Control Cycle,Decision Making,Formulating Long-and Short-Term Plans (Planning),Measuring Performance (Controlling),Implementing the Plans (Directing and Motivating),Comparing Actual to Planned Per
3、formance (Controlling),Begin,Differences Between Financial and Managerial Accounting,Expanding Role of Managerial Accounting,Increasing complexity and size of organizations,Rapid development and implementation of technology,Regulatory environment,World-wide competition,Increased emphasis on quality,
4、Factors that increase the need for managerial accounting information,The Changing Business Environment,The Changing Business Environment,Just-In-Time Total Quality Management Process Reengineering Theory of Constraints,New tools for managers!,Complete products just in time to ship customers.,Complet
5、e parts just in time for assembly into products.,Receive materials just in time for production.,Schedule production.,Just-in-Time (JIT) Systems,Receive customer orders.,Flexible workforce,Reduced setup time,Zero production defects,Key Elements for a Successful JIT System,Improved plant layout,JIT pu
6、rchasing Fewer, but more ultrareliable suppliers. Frequent JIT deliveries in small lots. Defect-free supplier deliveries.,More rapid response to customer orders,Less warehouse space needed,Reduced inventory costs,Greater customer satisfaction,Benefits of a JIT System,Do we need to change the plan?,W
7、here are we? Where do we want to go?,How do we start?,How are we doing?,Total Quality Management,Process Reengineering,The process is redesigned to include only those steps that make our product more valuable.,Every step in the business process must be justified.,A business process is diagrammed in
8、detail.,Process Reengineering,Anticipated results:Process is simplified.Process is completed in less time.Costs are reduced.Opportunities for errors are reduced.,The process is redesigned to include only those steps that make our product more valuable.,Every step in the business process must be just
9、ified.,A business process is diagrammed in detail.,Theory of Constraints,A sequential process of identifying and removing constraints in a system.,Restrictions or barriers that impede progress toward an objective,International Competition,Meeting world-class competition demands a world-class managem
10、ent accounting system. Managers must make decisions to plan, direct, and control a world-class organization.,Organizational Structure,An organization is a group of people united for a common purpose.,Decentralization,Decentralization decisionmaking,Decentralization decisionmaking,Decentralization is
11、 the delegation of decision-making authority throughout an organization.,Line and Staff Relationships,Line positions are directly related to achievement of the basic objectives of an organization. Example: Production supervisors in a manufacturing plant.,Staff positions support and assist line posit
12、ions. Example: Cost accountants in the manufacturing plant.,The Controller,The chief accountant in an organization with responsibility for: Financial planning and analysis. Cost control. Financial reporting. Accounting information systems.,Importance of Ethics in Accounting,Ethical accounting practi
13、ces build trust and promote loyal, productive relationships with users of accounting information. Many companies and professional organizations, such as the Institute of Management Accountants (IMA), have written codes of ethics which serve as guides for employees.,IMA Code of Ethics for Management
14、Accountants,Competence Confidentiality Integrity Objectivity Resolution of Ethical Conflict,IMA Code of Ethics for Management Accountants,Follow applicable laws, regulations and standards.,Prepare complete and clear reports after appropriate analysis.,Maintain professional competence.,Competence,IMA
15、 Code of Ethics for Management Accountants,Do not disclose confidential information unless legally obligated to do so.,Ensure that subordinates do not disclose confidential information.,Do not use confidential information for personal advantage.,Confidentiality,IMA Code of Ethics for Management Acco
16、untants,Avoid conflicts of interest and advise others of potential conflicts.,Recognize and communicate personal and professional limitations.,Do not subvert organizations legitimate objectives.,Integrity,IMA Code of Ethics for Management Accountants,Integrity,Avoid activities that could affect your
17、 ability to perform duties.,Communicate unfavorable as well as favorable information.,Refrain from activities that could discredit the profession.,Refuse gifts or favors that might influence behavior.,IMA Code of Ethics for Management Accountants,Communicate information fairly and objectively.,Discl
18、ose all information that might be useful to management.,Resolution of Ethical Conflict Follow established policies. For unresolved ethical conflicts: Discuss the conflict with immediate superior. If immediate superior is the CEO, consider the board of directors or the audit committee. Except where l
19、egally prescribed, maintain confidentiality.,IMA Code of Ethics for Management Accountants,Resolution of Ethical Conflict Clarify issues in a confidential discussion with an objective advisor. Consult an attorney as to legal obligations. The last resort is to resign.,IMA Code of Ethics for Management Accountants,End of Chapter 1,
