ch001 accounting

8/20/2019 Ch001 Accounting

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PowerPoint Authors:

Susan Coomer Galbreath, Ph.D., CPA

Charles W. Caldwell, D.B.A., CMA

Jon A. Booker, Ph.D., CPA, CIA

Cnthia J. !oone, Ph.D., CPACopyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.

Mana"erial A##ountin":

An $%er%iewCha&ter '


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(inan#ial and Mana"erial A##ountin": Se%en )e Di**eren#es


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Work o* Mana"ement

Planning

Planning

Decision

Making

Decision

Making

Controlling

Controlling


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Plannin"

+stablish Goals.

+stablish Goals.

S&e#i* ow Goals

Will Be A#hie%ed.

S&e#i* ow Goals

Will Be A#hie%ed.

De%elo& Bud"ets.

De%elo& Bud"ets.


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Controllin"

The control function gathers feedback to

ensure that plans are being followed.

The control function gathers feedback to

ensure that plans are being followed.

Feedback in the form of performance reportsthat compare actual results with the budget

are an essential part of the control function.

Feedback in the form of performance reportsthat compare actual results with the budget

are an essential part of the control function.


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De#ision Makin"

Decision making involves

making a selection among

competing alternatives.

Decision making involves

making a selection among

competing alternatives.

What should

we be selling?

What should

we be selling?

Who shouldwe be serving?

Who shouldwe be serving?

ow should

we e!ecute?

ow should

we e!ecute?


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Mana"erial A##ountin" A#ti%ities:

Marketin" Ma-ors

ow man sales&eo&le should we

&lan to hire to ser%e a new

territor

ow mu#h should we bud"et *or

/0, &rint, and internet ad%ertisin"

PlanningPlanning


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Marketin" Ma-ors

Are we a##umulatin" too mu#h

in%entor durin" the holida

sho&&in" season

Is the bud"eted &ri#e #ut

in#reasin" unit sales as e1&e#ted

ControllingControlling


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Marketin" Ma-ors

Should we sell dire#tl to

#ustomers or use a distributor

Should we sell our ser%i#es as

one bundle or sell them

se&aratel

Decision

Making

Decision

Making


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Su&&l Chain Mana"ement Ma-ors

ow mu#h should we bud"et *or

ne1t &eriod2s utilit e1&ense

ow man units should we &lan to

&rodu#e ne1t &eriod

PlanningPlanning


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Are we a#hie%in" our "oal o*

redu#in" the number o* de*e#ti%e

units &rodu#ed

Did we s&end more or less than

e1&e#ted *or the units we a#tuall

&rodu#ed



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Should we redesi"n our

manu*a#turin" &ro#ess to lower

in%entor le%els

Should we trans*er &rodu#tion o* a

#om&onent &art to an o%erseas

su&&lier

Decision

Making

Decision

Making


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uman !esour#e Mana"ement Ma-ors

ow mu#h should we &lan to

s&end on em&loee re#ruitment

ad%ertisin"

ow mu#h should we &lan to

s&end *or o##u&ational sa*et

trainin"

PlanningPlanning

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Are we meetin" our "oal o*

#om&letin" timel &er*orman#e

a&&raisals

Is our em&loee retention rate

e1#eedin" our "oals


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Should we hire tem&orar workers

or *ull3time em&loees

Should we hire an on3site medi#al

sta** to lower our health#are

#osts

Decision

Making

Decision

Making

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A##ountin" Ma-ors

+m&loers e1&e#t a##ountin" ma-ors

to ha%e stron" *inan#ial a##ountin"

skills, but the also e1&e#ta&&li#ation o* the &lannin",

#ontrollin", and de#ision makin"

skills that are the *oundation o*

mana"erial a##ountin".

/he IMA estimates that more than

456 o* &ro*essional a##ountants

in the 7.S. work in non3&ubli#

a##ountin" en%ironments.

456

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Certi*ied Mana"ement A##ountant

" management accountant

who has the necessar# $ualifications

and who passes a rigorous professional

e!am earns the right to be known as a

Certified Management "ccountant

%CM"&.

" management accountant

who has the necessar# $ualifications

and who passes a rigorous professional

e!am earns the right to be known as aCertified Management "ccountant

%CM"&.

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CMA +1am

In*ormation about be#omin" a CMA and the CMA &ro"ram #an be a##essed

on the IMA2s website at www.imanet.or" or b #allin" '345538943;


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Mana"erial A##ountin": Beond the

=umbers


PlanningPlanning

Decision

Making

Decision

Making

The primary purpose

of this course is to

teach measurementskills that managers

use to support

planning, controlling,and decision making

activities.

The primary purpose

of this course is to

teach measurementskills that managers

use to support

planning, controlling,and decision making

activities.

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=umbers

What net in#ome should m #om&an

re&ort to its sto#kholders

What net in#ome should m #om&an

re&ort to its sto#kholders

Measure and re&ort histori#al data

that #om&lies with a&&li#able rules.

Measure and re&ort histori#al data

that #om&lies with a&&li#able rules.

ow will m #om&an ser%e its #ustomersow will m #om&an ser%e its #ustomers

Measure and anal>e mostl non3

*inan#ial, &ro#ess3oriented data.

Measure and anal>e mostl non3

*inan#ial, &ro#ess3oriented data.

Will m #om&an need to borrow moneWill m #om&an need to borrow mone

Measure and anal>e estimated

*uture #ash *lows.

Measure and anal>e estimated

*uture #ash *lows.

Measuremen

t skills hel&

mana"ers

answerim&ortant

?uestions.

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=umbers

Si1 Business Mana"ement Pers&e#ti%es that

"o beond the numbers to enable intelli"ent

&lannin", #ontrol, and de#ision makin":@ An +thi#s Pers&e#ti%e@ A Strate"i# Mana"ement Pers&e#ti%e@ An +nter&rise !isk Mana"ement Pers&e#ti%e@ A Cor&orate So#ial !es&onsibilit !es&e#ti%e@ A Pro#ess Mana"ement Pros&e#ti%e@ A eadershi& Pers&e#ti%e

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An +thi#s Pers&e#ti%e

CompetenceCompetence

Follow applicable

laws' regulations'and standards.

Follow applicable

laws' regulations'and standards.

Maintain

professionalcompetence.

Maintain

professionalcompetence.

Provide accurate' clear' concise' and

timel# decision support information.

Provide accurate' clear' concise' and

timel# decision support information.

(ecogni)e and communicate professionallimitations that preclude responsible *udgment.

(ecogni)e and communicate professionallimitations that preclude responsible *udgment.

/he Institute o* Mana"ement A##ountant2s IMAStatement o* +thi#al Pro*essional Pra#ti#e &ro%ides

"uidelines *or ethi#al beha%ior.

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Confidentialit#Confidentialit#

Do not disclose confidentialDo not disclose confidential

information unless legall#information unless legall#

obligated to do so.obligated to do so.

Do not disclose confidentialDo not disclose confidential

information unless legall#information unless legall#

obligated to do so.obligated to do so.

+nsure that subordinates do+nsure that subordinates do

not disclose confidentialnot disclose confidential

information.information.

+nsure that subordinates do+nsure that subordinates do

not disclose confidentialnot disclose confidential

information.information.

Do not useDo not use

confidentialconfidential

information forinformation for

unethical or illegalunethical or illegal

advantage.advantage.

Do not useDo not use

confidentialconfidential

information forinformation for

unethical or illegalunethical or illegal

advantage.advantage.

IMA Guidelines *or +thi#al Beha%ior

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Mitigate conflicts of

interest and advise others

of potential conflicts.

Mitigate conflicts of

interest and advise others

of potential conflicts.

"bstain from activities that

might discredit the

profession.

"bstain from activities that

might discredit the

profession.

(efrain fromconduct that

would pre*udice

carr#ing out

duties ethicall#.

(efrain fromconduct that

would pre*udice

carr#ing out

duties ethicall#.

,ntegrit#,ntegrit#


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Communicate information

fairl# and ob*ectivel#.

Communicate information

fairl# and ob*ectivel#.

Disclose all relevant

information that could

influence a user-s

understanding of reports

and recommendations.

Disclose all relevantinformation that could

influence a user-s

understanding of reports

and recommendations.

Credibilit#Credibilit#


Disclose dela#s or

deficiencies in information

timeliness' processing' or

internal controls.

Disclose dela#s or

deficiencies in information

timeliness' processing' or

internal controls.

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IMA Guidelines *or !esolution o* an+thi#al Con*li#t

Follow emplo#er-s established policies.

,f this does not work' consider the following

▫ Dis#uss the #on*li#t with immediate su&er%isor or ne1thi"hest unin%ol%ed mana"erial le%el.

▫ I* immediate su&er%isor is the C+$, #onsider theboard o* dire#tors or the audit #ommittee.

▫ Conta#t with le%els abo%e the immediate su&er%isorshould onl be initiated with the su&er%isor2sknowled"e, assumin" the su&er%isor is not in%ol%ed.

Follow emplo#er-s established policies.

,f this does not work' consider the following

▫ Dis#uss the #on*li#t with immediate su&er%isor or ne1thi"hest unin%ol%ed mana"erial le%el.

▫ I* immediate su&er%isor is the C+$, #onsider theboard o* dire#tors or the audit #ommittee.

▫ Conta#t with le%els abo%e the immediate su&er%isorshould onl be initiated with the su&er%isor2sknowled"e, assumin" the su&er%isor is not in%ol%ed.

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IMA Guidelines *or !esolution o* an+thi#al Con*li#t

,f following emplo#er-s established policies for conflictresolution do not work' consider these additionalpractices

▫ +1#e&t where le"all &res#ribed, maintain#on*identialit.

▫ Clari* issues in a #on*idential dis#ussion with anob-e#ti%e ad%isor.

▫ Consult an attorne as to le"al obli"ations.

,f following emplo#er-s established policies for conflictresolution do not work' consider these additionalpractices

▫ +1#e&t where le"all &res#ribed, maintain#on*identialit.

▫ Clari* issues in a #on*idential dis#ussion with anob-e#ti%e ad%isor.

▫ Consult an attorne as to le"al obli"ations.

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Abandonin" ethi#al standards in business would

lead to a lower ?ualit o* li*e with less

desirable "oods and ser%i#es at hi"her &ri#es.

Wh a%e +thi#al Standards

Without ethi#al standards in business, the

e#onom, and all o* us who de&end on it *or

-obs, "oods, and ser%i#es, would su**er.

+thi#al standards in business are essential *or a

smooth *un#tionin" e#onom.

+thi#al standards in business are essential *or a

smooth *un#tionin" e#onom.

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A Strate"i# Mana"ement Pers&e#ti%e

A strate"is a "ame &lanE

that enables a #om&an

to attra#t #ustomersb distin"uishin" itsel* *rom #om&etitors.

/he *o#al &oint o* a

#om&an2s strate" should

be its tar"et #ustomers.

/he *o#al &oint o* a

#om&an2s strate" should

be its tar"et #ustomers.

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Customer 0alue Pro&ositions

7nderstand and res&ond to

indi%idual #ustomer needs.

7nderstand and res&ond to

indi%idual #ustomer needs.

Customer

Intima#

Strate"

$&erational

+1#ellen#e

Strate"

Deli%er &rodu#ts and ser%i#es

*aster, more #on%enientl,

and at lower &ri#es.

Deli%er &rodu#ts and ser%i#es

*aster, more #on%enientl,

and at lower &ri#es.

Produ#t

eadershi&

Strate"$**er hi"her ?ualit &rodu#ts.$**er hi"her ?ualit &rodu#ts.

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An +nter&rise !isk Mana"ement

Pers&e#ti%e

A &ro#ess used A &ro#ess used

b a #om&an tob a #om&an to

&roa#ti%el identi*&roa#ti%el identi*and mana"e risk.and mana"e risk.

$n#e a #om&an identi*ies its risks, &erha&s the

most #ommon risk mana"ement ta#ti# is to redu#e

risks b im&lementin" s&e#i*i# #ontrols.

$n#e a #om&an identi*ies its risks, &erha&s the

most #ommon risk mana"ement ta#ti# is to redu#e

risks b im&lementin" s&e#i*i# #ontrols.

Should I tr to a%oid the

risk, a##e&t the risk, or

redu#e the risk

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An +nter&rise !isk Mana"ement

Pers&e#ti%e

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A Cor&orate So#ial !es&onsibilit

Pers&e#ti%e

CS! e1tends beond le"al #om&lian#e

to in#lude %oluntar a#tions that satis*

stakeholder e1&e#tations.

CS! e1tends beond le"al #om&lian#e

to in#lude %oluntar a#tions that satis*

stakeholder e1&e#tations.

Cor&orate so#ial res&onsibilit CS! is a #on#e&t

whereb or"ani>ations #onsider the needs

o* all stakeholders when makin" de#isions.

Cor&orate so#ial res&onsibilit CS! is a #on#e&t

whereb or"ani>ations #onsider the needs

o* all stakeholders when makin" de#isions.

Customers +m&loees CommunitiesSu&&liers Sto#kholders

+n%ironmental

F uman !i"hts Ad%o#ates

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Cor&orate So#ial !es&onsibilit

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A Pro#ess Mana"ement Pers&e#ti%e

/usiness functions making up the value chain/usiness functions making up the value chain

Produ#t Customer

!FD Desi"n Manu*a#turin" Marketin" Distribution Ser%i#e

A business

&ro#ess is a series o*

ste&s that are *ollowed in order to

#arr out some task ina business.

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ean Produ#tion

Customer &la#es

an order

Create Produ#tion

$rder

Generate #om&onent

re?uirements

Produ#tion be"ins

as &arts arri%e

Goods deli%ered

when needed

Com&onents

are ordered

ean Produ#tion is o*ten #alled Just3In3/ime JI/ &rodu#tion.ean Produ#tion is o*ten #alled Just3In3/ime JI/ &rodu#tion.

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ean Produ#tion

Produ#e "oods in

anti#i&ation o* Sales

Make Sales *rom

(inished Goods

In%entor

Traditional ManufacturingTraditional Manufacturing

Store

In%entor

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ean Produ#tion

Be#ause lean thinkin" onl allows &rodu#tion in

res&onse to #ustomer orders, the number o* units

&rodu#ed tends to e?ual the number o* units sold.

/he lean a&&roa#h also results in *ewer de*e#ts,

less wasted e**ort, and ?ui#ker #ustomer res&onse

times than traditional &rodu#tion methods.

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A eadershi& Pers&e#ti%e

$r"ani>ational leaders unite the

beha%ior o* em&loees around

two #ommon themes&ursuin"

strate"i# "oals and makin"

o&timal de#isions.

(a#tors that in*luen#e beha%ior:@Intrinsi# Moti%ation@+1trinsi# In#enti%es@Co"niti%e Bias

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+nd o* Cha&ter '

ch001 accounting

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