Management accounting measures, analyzes and reports financial and nonfinancial information that helps managers fulfill the goals of an organizations. Managers use management accounting information to choose, communicate and implement strategy, coordinate product design, production and marketing decisions.
Management accounting measures, analyzes and reports financial and nonfinancial information that helps managers fulfill the goals of an organizations. Managers use management accounting information to choose, communicate and implement strategy, coordinate product design, production and marketing decisions.
Management accounting measures, analyzes and reports financial and nonfinancial information that helps managers fulfill the goals of an organizations. Managers use management accounting information to choose, communicate and implement strategy, coordinate product design, production and marketing decisions.
CPA(T), Msc. Fin. Mgt Definition Management accounting measures, analyzes and reports financial and non- financial information that helps managers make decisions to fulfill the goals of an organizations. Managers use management accounting information to choose, communicate and implement strategy, coordinate product design, production and marketing decisions. Focuses on internal reporting Roles of mgt. accountant Forecasting and planning, Variance analysis, Monitoring costs Preparation of certain financial reports, reconciliations of the financial data to source systems, value creation, Ensure success of the business. Management Financial accounting accounting Rules of Internal measures and Financial measureme reports do not have to statements must nt and follow international be prepared in reporting standards but are accordance with based on cost benefit International analysis Standards and be certified by the external, independent auditors Management Financial accounting accounting Time span and Varies from hourly Annual and type of report information to 15 quarterly financial to 20 years with reports, primarily financial and non on the company as financial reports a whole Behavioral Designed to Primarily reports implications influence the economic events behavior of but also influences managers and behavior because other employees manager’s compensation is often based on reported financial results. Designing Accounting Information System Planning Analysis Design Implementation and Support Planning Analysis Design Impleme ntation Support Management accounting and the business environment Characterized by increasing competition and a relentless drive for continuous improvement. Several approaches have been developed to assist organizations in meeting these challenges-including: just-in-time (JIT), total quality management (TQM), process reengineering, and the theory of constraints (TOC). JIT Emphasizes the importance of reducing inventories to the barest minimum possible. This reduces working capital requirements, Frees up space, Reduces throughput time, Reduces defects, and Eliminates waste. TQM involves focusing on the customer, and it employs systematic problem solving using teams made up of front-line workers. Specific TQM tools include benchmarking and the plan-do-check-act (PDCA) cycle. By emphasizing teamwork, TQM can avoid the organizational infighting that might otherwise block improvement. The theory of constraints It emphasizes the importance of managing the organization's constraints. Since the constraint is whatever is holding back the organization, improvement efforts usually must be focused on the constraint in order to be really effective. Process Reengineering involves completely redesigning a business process in order to eliminate non-value-added activities and to reduce opportunities for errors. Process Reengineering relies more on outside specialists than TQM and is more likely to be imposed by top management. Organizational Chart It depicts who works for whom in the organization and which units perform staff functions rather than line functions. Ethical standards Serve a very important practical function in an advanced market economy. Without widespread adherence to ethical standards, the economy would slow down dramatically. Ethics are the lubrication that keep a market economy functioning smoothly. The Standards of Ethical Conduct for Practitioners of Management Accounting and Financial Management provide sound, practical guidelines for resolving ethical problems that might arise in an organization. Ethical standards Ethics build trust promote loyal and productive relationships. There are code of ethics for management accountants Code of ethics