Kế toán, kiểm toán - Chapter 1: The Changing Role of Managerial Accounting in a Dynamic Business Environment

Chapter 1The Changing Role of Managerial Accounting in a Dynamic Business EnvironmentManagerial accounting is the process of IdentifyingMeasuringAnalyzingInterpretingCommunicating informationDefine Managerial AccountingManaging Resources, Activities, and PeopleAn organization . . .Acquires ResourcesHires PeopleOrganized setof activitiesDecisionMakingPlanningDirectingControllingHow Managerial Accounting Adds Value to the OrganizationProviding information for decision making and planning.Assisting managers in directing and controlling activities.Motivating managers and other employees towards organization’s goals.Measuring performance of activities, managers, and other employees.Assessing the organization’s competitive position.Managerial versus Financial AccountingA staff position supports and assists line positions.Example: A cost accountant in the manufacturing plant.Line and Staff PositionsA line position is directly involved in achieving the basic objectives of an organization.Example: A production supervisor in a manufacturing plant.Controller The chief managerial and financial accountant responsibility for:Supervising accounting personnel Preparation of information and reports, managerial and financialAnalysis of accounting informationPlanning and decision makingTreasurer Responsible for raising capital and safeguarding the organization’s assets.Supervises relationships with financial institutions.Work with investors and potentialinvestors. Manages investments.Establishes credit policies.Manages insurance coverageInternal Auditor Responsible for reviewing accounting procedures, records, and reports in both the controller’s and the treasurer’s area of responsibility.Expresses an opinion to topmanagement regarding theeffectiveness of theorganizations accountingsystem.Major Themes in Managerial AccountingManagerialAccountingInformationand IncentivesCosts andBenefitsEvolution andAdaptationBehavioralIssuesObjectivesMeasure the cost of resources consumed.Identify and eliminate non-value-added costs.Determine efficiency and effectiveness of major activities.Identify and evaluate new activities that can improve performance.Cost Management SystemsCostManagementSystemProductDesignResearchandDevelopmentStrategic Cost Management and the Value ChainSecuring rawmaterials andother resourcesProductionMarketingDistributionCustomerServiceStartEthical Climate of Business The corporate scandals experienced over the last few years have shown us that unethical behavior in business is wrong in a moral sense and can be disastrous in the economy. In addition to Sarbanes-Oxley, there will likely be more reforms in corporate governance and accounting.Managerial Accounting as a CareerProfessional OrganizationsInstitute of Management Accountants (IMA)PublishesManagementAccountingand researchstudies.AdministersCertifiedManagementAccountantprogramDevelopsStandards ofEthicalConduct forManagementAccountantsProfessional EthicsCompetenceConfidentialityIntegrityCredibility