STRATEGIC COST MNGT (FIRST TOPIC)
professional competence by ongoing
ROLES OF MANAGEMENT
ACCOUNTANT IN ORGANIZATION
LINE- A line on the goal of the business
Line Authority – authority to command
action or give orders to subordinates.
Line Managers – directly responsible for
attaining objectives of the business.
STAFF-Indirect
Staff Authority – advise but not command
exercised laterally upward.
Staff Managers – gives support, advice and
service to line departments.
Functional Authority – right to command
action, laterally or downward with regard to a
specific function or specialty.
Planning – identifying alternatives and
selecting courses of action and specifying how
the action will be implemented to further
organization’s objectives.
Control – evaluating the performance of
managers and the operations for which they
are responsible.
 Performance Report – reports used to
evaluate performance of managers.
Decision Making – integral part of planning
and control process – decision are made to
reward or punish the manager and decision are
made to change operations or revise plans.
Ethical Standards for Management
Accountants
IMA or Institute of Management Accountants
of the USA developed a very useful ethical
code called the Standards of Ethical Conduct
for Practitioners of Management Accounting
and Financial Management.
Code of Conduct for Management
Accountants
1. To maintain a high level of professional
competence
2. To treat sensitive matters with
confidentiality
3. To maintain personal integrity and
4. To be objective in all disclosing
5. Resolution of Ethical Conflict
Competence
 Maintain an appropriate level of
development of knowledge and skills
 Perform their professional duties
 Prepare complete and clear reports
Confidentiality
 Refrain from disclosing confidential
information
 Inform subordinates as appropriate
regarding confidentiality of information
 Refrain from using or appearing to use
confidential information acquired in the course
of their work
Integrity
 Avoid actual or apparent conflicts of
interest
 Refrain from engaging in any activity that
would prejudice their ability to carry out duties
 Refuse any gift, favor or hospitality that
would influence or would appear to influence
their actions
Objectivity
 Communicate information fairly and
objectively
 Disclose fully all relevant information
CMA Certified Management Accountant –
passed the rigorous qualifying examination,
has met an experience requirement and
participates in continuing education
CPA Certified Public Accountant – has met
pre-qualification educational requirements,
passed the CPA licensure examinations given
by the Professional Regulatory Board of
Accountancy and has satisfied all other legal
and regulatory requirements
CIA Certified Internal Auditor – an individual
must pass a comprehensive examination
designed to ensure technical competence and
have required number of years work
experience
FACTOR AFFECTING COST
MANAGEMENT
1.Increase in Global Competition
2. Advances in manufacturing technologies
3. Advances in Information Technology
4. A greater focus on the customer
5. New forms of management organization
6. Changes in social, political, and cultural
environment