Vous êtes sur la page 1sur 46

1 -1

An
An electronic
electronic
presentation
presentation by
by
Douglas
Douglas Cloud
Cloud
Pepperdine
PepperdineUniversity
University
1 -2

Task Force Clip Art


included in this electronic
presentation is used with
the permission of New
Vision Technology of
Nepean Ontario, Canada.
1 -3

Introduction:
CHAPTER
The Role,
History, and
Direction of
Management
Accounting
1 -4

Objectives
Objectives
1. Discuss the need for management accounting
After
After studying
studying this
this
information.
chapter,
chapter, you
you should
should
2. Differentiate between management accounting
be able to:
and financial accounting. to:
be able
3. Provide a brief historical description of
management accounting.
4. Identify the current focus of management
accounting.

Continued
Continued
1 -5

Objectives
Objectives
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.
1 -6

The managerial accounting system has three


broad objectives:
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.
1 -7

Management
Management Accounting
Accounting
Information
Information System
System
Collecting Special Reports
Measuring Product Costs
Storing Customer Costs
Analyzing Budgets
Reporting Performance Reports
Economic Managing Personal Communication
Events
Inputs Processes Outputs

Users
1 -8

Management
Management Process
Process

The Management Process is defined by the


following activities:
Planning requires
Planning setting objectives
and identifying
Controlling methods to achieve
those objectives.
Decision Making
1 -9

Management
Management Process
Process

The Management Process is defined by the


following activities: Controlling is
the managerial
Planning activity of
Controlling monitoring a
plans
Decision Making implementation
and taking
corrective action
as needed.
1 -10

Management
Management Process
Process

The Management Process is defined by the


following activities:
Planning Control is
usually achieved
Controlling
with the use of
Decision Making feedback.
1 -11

Management
Management Process
Process
Feedback
Feedbackisis information
information
that
that can
can be
be used
used to
to
evaluate
evaluate oror correct
correct the
the
steps
steps being
being taken
taken toto
implement
implement aa plan.
plan.
1 -12

Management
Management Process
Process

The Management Process is defined by the


following activities:
Planning
Decision
Controlling making is
the process
Decision Making of choosing
among
competing
alternatives.
Next
Page
1 -13
Work of Management Click
Here

Planning
Directing and
Motivating

Controlling
Next
Page
1 -14
Planning and Control Cycle Click
Here

Formulating Long-and Begin


Short-Term Plans
(Planning)

Comparing Actual Implementing


to Decision the Plans
Planned Performance Making (Directing and
(Controlling) Motivating)

Measuring
Performance
(Controlling)
1 -15

Differentiate Between
Management Accounting and
Financial Accounting
Managerial Accounting Next
Page
1 -16
Click
Here

and Financial Accounting

Managerial accounting Financial accounting


provides information provides information
for managers of an to stockholders,
organization who creditors and others
direct and control who are outside
its operations. the organization.
1 -17
Management
ManagementAccounting
Accounting Financial
FinancialAccounting
Accounting

1. Internally focused 1. Externally focused


1 -18

Targeted
Targeted Users
Users

Management
accounting
focuses on
providing
information for
internal users.
1 -19

Targeted
Targeted Users
Users

Financial
Financial
accounting
accounting focuses
focuses
on
on provided
provided
information
information for
for
ABC external
external users.
users.
Company
Annual
Report
1 -20
Management
ManagementAccounting
Accounting Financial
FinancialAccounting
Accounting

1. Internally focused 1. Externally focused


2. No mandatory rules 2. Must follow externally
imposed rules
1 -21

Restrictions
Restrictions on
on Inputs
Inputs and
and Processes
Processes
Management
Management accounting
accounting isis not
not
Financial
Financial accounting
accounting reporting
reporting must
must
subject
subject to the requirements
to the requirements of
of set
follow
follow the accounting
the accounting procedures
procedures set
generally
generally accepted
accepted accounting
accounting
by the SEC
by the SEC and
and the
the FASB.
FASB.
principles.
principles.
1 -22
Management
ManagementAccounting
Accounting Financial
FinancialAccounting
Accounting

1. Internally focused 1. Externally focused


2. No mandatory rules 2. Must follow externally
imposed rules
3. Financial and 3. Objective financial
nonfinancial informa- information
tion; subjective
information possible
1 -23

Types of Information

For
ForThe
management
The restrictions
restrictionsaccounting,
management imposed
imposed on
accounting, onthe
the
financial
financial
financial
financialaccounting
or
or nonfinancial
accounting tend
tend to
nonfinancial to
produce
information
produce
informationobjective
may
may be
objective and
be much
and verifiable
much more
verifiable
more
financial
subjective
financial
subjectiveinformation.
in
in nature.
information.
nature.
1 -24
Management
ManagementAccounting
Accounting Financial
FinancialAccounting
Accounting

1. Internally focused 1. Externally focused


2. No mandatory rules 2. Must follow externally
imposed rules
3. Financial and 3. Objective financial
nonfinancial informa- information
tion; subjective
information possible
4. Emphasis on the future 4. Historical orientation
1 -25

Time
Time Orientation
Orientation

Management
accounting strongly
emphasizes providing
information about
future events.
1 -26

Time
Time Orientation
Orientation

Financial
accounting records
and reports events
that have already
happened.
1 -27
Management
ManagementAccounting
Accounting Financial
FinancialAccounting
Accounting

1. Internally focused 1. Externally focused


2. No mandatory rules 2. Must follow externally
imposed rules
3. Financial and 3. Objective financial
nonfinancial informa- information
tion; subjective
information possible
4. Emphasis on the future 4. Historical orientation
5. Internal evaluation and 5. Information about the
decisions based on very firm as a whole
detail information
1 -28

Degree
Degree of
of Aggregation
Aggregation
Management
accounting provides
measures and internal
reports used the
evaluate performance of
entities, product lines,
departments, and
managers.
1 -29

Degree
Degree of
of Aggregation
Aggregation

Financial
accounting focuses
on overall firm
performance.
1 -30
Management
ManagementAccounting
Accounting Financial
FinancialAccounting
Accounting

1. Internally focused 1. Externally focused


2. No mandatory rules 2. Must follow externally
imposed rules
3. Financial and 3. Objective financial
nonfinancial informa- information
tion; subjective
information possible
4. Emphasis on the future 4. Historical orientation
5. Internal evaluation and 5. Information about the
decisions based on very firm as a whole
detail information
6. Broad, multidisciplinary 6. More self-contained
1 -31

Breadth
Breadth
ItIt includes
includes aspects
aspects of
of managerial
managerial
Management
Management accounting
accounting isis much
much
economics,
economics, industrial
industrial engineering,
engineering,
broader
broader than
than financial
financial accounting.
accounting.
and management science.
and management science.
Historical Description of 1 -32

Management 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
1 -33

Current
Current Focus
Focus of
of Management
Management Accounting
Accounting
Activity-Based
Activity-Based Management
Management

Activity-based management is a system


wide, integrated approach that focuses
managements attention on activities with the
objective of improving customer value and
the resulting profit.
1 -34

Current
Current Focus
Focus of
of Management
Management Accounting
Accounting
Customer
Customer Orientation
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.


1 -35

Current
Current Focus
Focus of
of Management
Management Accounting
Accounting
Strategic
Strategic Positioning
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
1 -36

Current
Current Focus
Focus of
of Management
Management Accounting
Accounting
Value-Chain
Value-Chain Framework
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.
1 -37

Planting and
Value Chain: Cultivating
Apple Industry
Harvesting Firm
B
Distribution of
Apples
Firm
A Applesauce
Production Firm
C
Product Disposal Applesauce
Distribution

End-Use Customer Supermarkets


1 -38

Managing
Managing the the value
value chain
chain means
means
that
that aa management
management accountant
accountant
must
must understand
understand many
many functions
functions
of
of the
the business,
business, from
from
manufacturing
manufacturing to to marketing.
marketing.
1 -39

This
This emphasis
emphasis onon quality
quality has hascreated
created
aa demand
demand for
for management
management
The
The philosophy
philosophy of
of total
total quality
quality
accounting
accounting systems
systems that provide
that provide
management
management is to manufacture
isnonfinancial
to manufacture
financial
financial and
and products.
nonfinancial
perfect
perfect products.
information
information about
about quality.
quality.
1 -40

The
The role
role of
of
management
management
accountants
accountants inin an
an
organization
organization isis one
one
of
of support.
support.
Partial Organization Chart, 1 -41

Manufacturing Company
President
Line Function Staff Function

Production Financial
Vice President Vice President

Production
Supervisor Controller Treasurer

Machining Assembly Internal


Foreman Foreman Audit
Cost Financial Systems Tax
1 -42

Ethical
Ethical
Behavior
Behavior
Michael Josephsons* Ten Ethical Values:
Honesty Caring for others
Integrity Respect for others
Promise keeping Responsible
citizenship
Fidelity
Pursuit of excellence
Fairness
Accountability
*Michael Josephson, Teaching Ethical Decision Making and Principled
Reasoning
1 -43

Professional
Professional Certifications
Certifications

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.
1 -44

The
The CMA
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
1 -45

Chapter One

The
The End
End
1 -46