11. Three guidelines that help management accountants increase their value to managers are (a)employ a cost-benefit approach, (b) recognize behavioral as well as technical considerations, and(c) identify different costs for different purposes.12.
Management accounting is an integral part of the controller’s function in an organization. In
most organizations, the controller reports to the chief financial officer, who is a key member of the top management team.13. Management accountants have ethical responsibilities that are related to competence,confidentiality, integrity, and objectivity.14. By reporting and interpreting relevant data, the controller exerts a force or influence that impelsmanagement toward making better-informed decisions.
The controller of one company described the job as “a business advisor to…help the team
develop strategy and focus
the team all the way through recommendations and implementation.”
Audience: External: shareholders, creditors, taxauthoritiesPurpose: Report on past performance to externalparties; basis of contracts with owners andlendersTimeliness: Delayed; historicalRestrictions: Regulated; rules driven by generally acceptedaccounting principles and governmentauthoritiesType of Information: Financial measurements onlyNature of Information: Objective, auditable, reliable, consistent,preciseScope: Highly aggregate; report on entireorganization
Audience: Internal: Workers, managers, executivesPurpose: Inform internal decisions made by employeesand managers; feedback and control onoperating performanceTimeliness: Current, future orientedRestrictions: No regulations; systems and informationdetermined by management to meet strategicand operational needsType of Information: Financial, plus operational and physicalmeasurements on processes, technologies,