Professional Documents
Culture Documents
Management
accounting
in context
PowerPoint to accompany:
Horngren’s Cost Accounting, 3rd
Edition
Learning Objectives
Copyright © 2018 Pearson Australia (a division of Pearson Australia Group Pty Ltd) – 9781488612640/ Horngren/ Cost Accounting, 3e 2
Management accounting and its role
1
AICPA and CIMA 2014, Global Management Accounting Principles. Effective management accounting: Improving decisions
and building successful organisations, <http://www.cgma.org/Resources/Reports/Pages/GlobalManagementAccountingPrinciples.
aspx?utm_source=cimaglobal&utm_medium=principles-page&utm_campaign=principles2014>, p. 8, accessed 17 December 2016.
Copyright © 2018 Pearson Australia (a division of Pearson Australia Group Pty Ltd) – 9781488612640/ Horngren/ Cost Accounting, 3e 3
Management accounting and its role (cont’d)
Copyright © 2018 Pearson Australia (a division of Pearson Australia Group Pty Ltd) – 9781488612640/ Horngren/ Cost Accounting, 3e 4
Management accounting and its role (cont’d)
Three guidelines:
1. Benefit–cost analysis:
A benefit–cost analysis is appropriate for these decisions
because resources should be used only if the expected benefits
to the company exceed the expected costs.
2. Behavioural and technical considerations:
Management accounting is primarily a human activity that
should focus on how to help individuals do their jobs better.
• Different costs for different purposes:
As in many other domains, ‘one size fits all’ does not apply to
management accounting. Different costs serve different
purposes.
Copyright © 2018 Pearson Australia (a division of Pearson Australia Group Pty Ltd) – 9781488612640/ Horngren/ Cost Accounting, 3e 5
Management accounting and its role (cont’d)
Copyright © 2018 Pearson Australia (a division of Pearson Australia Group Pty Ltd) – 9781488612640/ Horngren/ Cost Accounting, 3e 6
Management accounting and its role (cont’d)
Copyright © 2018 Pearson Australia (a division of Pearson Australia Group Pty Ltd) – 9781488612640/ Horngren/ Cost Accounting, 3e 7
Management accounting and its role (cont’d)
Copyright © 2018 Pearson Australia (a division of Pearson Australia Group Pty Ltd) – 9781488612640/ Horngren/ Cost Accounting, 3e 8
Management accounting and its role (cont’d)
Copyright © 2018 Pearson Australia (a division of Pearson Australia Group Pty Ltd) – 9781488612640/ Horngren/ Cost Accounting, 3e 9
The supply chain, the value chain and key
success factors
Copyright © 2018 Pearson Australia (a division of Pearson Australia Group Pty Ltd) – 9781488612640/ Horngren/ Cost Accounting, 3e 10
The supply chain, the value chain and key
success factors (cont’d)
Copyright © 2018 Pearson Australia (a division of Pearson Australia Group Pty Ltd) – 9781488612640/ Horngren/ Cost Accounting, 3e 11
The supply chain, the value chain and key
success factors (cont’d)
Copyright © 2018 Pearson Australia (a division of Pearson Australia Group Pty Ltd) – 9781488612640/ Horngren/ Cost Accounting, 3e 12
The supply chain, the value chain and key
success factors (cont’d)
Copyright © 2018 Pearson Australia (a division of Pearson Australia Group Pty Ltd) – 9781488612640/ Horngren/ Cost Accounting, 3e 13
Planning, control and making decisions
Copyright © 2018 Pearson Australia (a division of Pearson Australia Group Pty Ltd) – 9781488612640/ Horngren/ Cost Accounting, 3e 14
Planning, control and making decisions (cont’d)
Copyright © 2018 Pearson Australia (a division of Pearson Australia Group Pty Ltd) – 9781488612640/ Horngren/ Cost Accounting, 3e 15
Planning, control and making decisions (cont’d)
Copyright © 2018 Pearson Australia (a division of Pearson Australia Group Pty Ltd) – 9781488612640/ Horngren/ Cost Accounting, 3e 16
Planning, control and making decisions (cont’d)
Copyright © 2018 Pearson Australia (a division of Pearson Australia Group Pty Ltd) – 9781488612640/ Horngren/ Cost Accounting, 3e 17
Strategy, the organisation and its environment
Copyright © 2018 Pearson Australia (a division of Pearson Australia Group Pty Ltd) – 9781488612640/ Horngren/ Cost Accounting, 3e 18
Strategy, the organisation and its environment
(cont’d)
Copyright © 2018 Pearson Australia (a division of Pearson Australia Group Pty Ltd) – 9781488612640/ Horngren/ Cost Accounting, 3e 19
Strategy, the organisation and its environment
(cont’d)
Copyright © 2018 Pearson Australia (a division of Pearson Australia Group Pty Ltd) – 9781488612640/ Horngren/ Cost Accounting, 3e 20
The five-step guide to decisions
Copyright © 2018 Pearson Australia (a division of Pearson Australia Group Pty Ltd) – 9781488612640/ Horngren/ Cost Accounting, 3e 21
The five-step guide to decisions (cont’d)
Copyright © 2018 Pearson Australia (a division of Pearson Australia Group Pty Ltd) – 9781488612640/ Horngren/ Cost Accounting, 3e 22
The five-step guide to decisions (cont’d)
Copyright © 2018 Pearson Australia (a division of Pearson Australia Group Pty Ltd) – 9781488612640/ Horngren/ Cost Accounting, 3e 23
The influence of professional accounting
organisations on management accounting
• The IFAC has 175 members and associates from 130 countries,
representing almost 3 million accountants.
• Among these are a number of professional accounting
organisations that are well-known in Australia; particularly those in
the UK, USA, New Zealand and Australia itself.
• Many of these organisations have a significant international
presence, such as the Chartered Institute of Management
Accountants (CIMA), the Association of Chartered Certified
Accountants (ACCA) and CPA Australia.
Copyright © 2018 Pearson Australia (a division of Pearson Australia Group Pty Ltd) – 9781488612640/ Horngren/ Cost Accounting, 3e 24
The influence of professional accounting
organisations on management accounting (cont’d)
Copyright © 2018 Pearson Australia (a division of Pearson Australia Group Pty Ltd) – 9781488612640/ Horngren/ Cost Accounting, 3e 25
The influence of professional accounting
organisations on management accounting (cont’d)
Codes of ethics:
Copyright © 2018 Pearson Australia (a division of Pearson Australia Group Pty Ltd) – 9781488612640/ Horngren/ Cost Accounting, 3e 26