Professional Documents
Culture Documents
Chapter One
Planning
Planning
Directing
Directing and
and
Motivating
Motivating
Controlling
Controlling
Identify
Identify
alternatives.
alternatives.
Select
Select alternative
alternative that
that does
does
the
the best
best job
job of
of furthering
furthering
organization’s
organization’s objectives.
objectives.
Develop
Develop budgets
budgets to
to guide
guide
progress
progress toward
toward the
the
selected
selected alternative.
alternative.
McGraw-Hill/Irwin Copyright © 2006, The McGraw-Hill Companies, Inc.
Directing and Motivating
The
The control
control function
function ensures
ensures
that
that plans
plans are
are being
being followed.
followed.
Feedback
Feedback inin the
the form
form ofof performance
performance reports
reports
that
that compare
compare actual
actual results
results with
with the
the budget
budget
are
are an
an essential
essential part
part of
of the
the control
control function.
function.
Formulating
Formulatinglong-
long- Begin
and
andshort-term
short-termplans
plans
(Planning)
(Planning)
Comparing
Comparingactual
actual Implementing
Implementing
to
toplanned
planned Decision plans
performance Making plans(Directing
(Directing
performance and
(Controlling) andMotivating)
Motivating)
(Controlling)
Measuring
Measuring
performance
performance
(Controlling)
(Controlling)
McGraw-Hill/Irwin Copyright © 2006, The McGraw-Hill Companies, Inc.
Comparison of Financial and Exh.
1-2
Managerial Accounting
Decentralization
Decentralization is
is the
the delegation
delegation of
of decision-
decision-
making
making authority
authority throughout
throughout anan organization.
organization.
C o r p o r a te O r g a n iz a tio n C h a r t
B o a r d o f D ir e c t o r s
P r e s id e n t
P u r c h a s in g P e rs o n n e l V ic e P r e s id e n t C h ie f F in a n c ia l
O p e r a t io n s O f f ic e r
T re a su re r C o n t r o lle r
•• Just-in-time
Just-in-time production
production
•• Total
Total quality
quality management
management
•• Process
Process reengineering
reengineering Business environment
•• Theory
Theory of
of constraints
constraints changes in the past
•• International
International competition
competition twenty years
•• E-commerce
E-commerce
McGraw-Hill/Irwin Copyright © 2006, The McGraw-Hill Companies, Inc.
Just-in-Time (JIT) Systems
Receive
Receive
customer Complete
Complete products
products
customer
orders. just
just in
in time
time to
to
orders.
ship
ship customers.
customers.
Schedule
Schedule
production.
production.
Receive
Receive materials
materials Complete
Complete partsparts
just
just in
in time
time for
for just
just in
in time
time for
for
production.
production. assembly
assembly into
into products.
products.
Improved
Improved Zero
Zero production
production
plant
plant layout
layout defects
defects
Reduced
Reduced Flexible
Flexible
setup
setuptime
time workforce
workforce
JIT
JIT purchasing
purchasing
Fewer,
Fewer, but
but more
more ultrareliable
ultrareliable suppliers.
suppliers.
Frequent
Frequent JIT
JIT deliveries
deliveries in
in small
small lots.
lots.
Defect-free
Defect-free supplier
supplier deliveries.
deliveries.
McGraw-Hill/Irwin Copyright © 2006, The McGraw-Hill Companies, Inc.
Benefits of a JIT System
Reduced
Reduced Freed-up
Freed-up funds
funds
inventory
inventory
costs
costs
Greater
Greater
customer
customer
Higher quality satisfaction
satisfaction
products
More
More rapid
rapid
response
response toto
Increased customer
customer orders
orders
throughput
Continuous
Improvement
Systematic
problem solving
using tools such is
as benchmarking
The
The constraint
constraint inin aa system
system is
is determined
determined
by
by the
the step
step that
that has
has the
the smallest
smallest capacity.
capacity.
Only actions 2.
2. Allow
Allow the
the
that strengthen weakest
weakestlinklinkto
to
the weakest link set
in the “chain” set the
thetempo.
tempo.
improve the
process.
3.
3.Focus
Focus onon
1.
1. Identify
Identifythe
the improving
improving
weakest
weakest link.
link. the
the weakest
weakest
link.
link.
4.
4.Recognize
Recognizethat
that
the
theweakest
weakest link
link
is
isno
nolonger
longerso.
so.
McGraw-Hill/Irwin Copyright © 2006, The McGraw-Hill Companies, Inc.
Code of Conduct for
Management Accountants
Follow
Followapplicable
applicablelaws,
laws,
regulations
regulationsand
and
standards.
standards.
Maintain
Maintain
professional
professional Competence
Competence
competence.
competence.
Prepare
Preparecomplete
completeandandclear
clear
reports
reportsafter
after appropriate
appropriate
analysis.
analysis.
McGraw-Hill/Irwin Copyright © 2006, The McGraw-Hill Companies, Inc.
IMA Guidelines for Ethical Behavior
Do
Donotnot disclose
discloseconfidential
confidential
information
information unless
unlesslegally
legally
obligated
obligated to
to do
do so.
so.
Do
Donot
not use
use
confidential
confidential
information
informationfor
for Confidentiality
Confidentiality
personal
personal
advantage.
advantage.
Ensure
Ensurethat
thatsubordinates
subordinatesdo
do
not
not disclose
disclose confidential
confidential
information.
information.
McGraw-Hill/Irwin Copyright © 2006, The McGraw-Hill Companies, Inc.
IMA Guidelines for Ethical Behavior
Avoid
Avoidconflicts
conflictsof
ofinterest
interest
and
andadvise
adviseothers
othersofof
potential
potentialconflicts.
conflicts.
Do
Donotnot subvert
subvert
organization’s
organization’s
legitimate
legitimate
Integrity
Integrity
objectives.
objectives.
Recognize
Recognizeand
and
communicate
communicatepersonal
personal and
and
professional
professionallimitations.
limitations.
McGraw-Hill/Irwin Copyright © 2006, The McGraw-Hill Companies, Inc.
IMA Guidelines for Ethical Behavior
Avoid
Avoid activities
activitiesthat
thatcould
could
affect
affect your
yourability
abilityto
to
perform
perform duties.
duties.
Refrain
Refrainfrom
from Refuse
Refusegifts
gifts
activities
activities or
orfavors
favors
that
thatcould
could Integrity
Integrity that
thatmight
might
discredit
discredit the
the influence
influence
profession.
profession. behavior.
behavior.
Communicate
Communicate
unfavorable
unfavorableas aswell
well as
as
favorable
favorable information.
information.
McGraw-Hill/Irwin Copyright © 2006, The McGraw-Hill Companies, Inc.
IMA Guidelines for Ethical Behavior
Communicate
Communicateinformation
information
fairly
fairlyand
andobjectively.
objectively.
Objectivity
Objectivity
Disclose
Disclose all
all information
information
that
thatmight
might bebeuseful
usefulto
to
management.
management.