Professional Documents
Culture Documents
Chap 01 Notes
Chap 01 Notes
Chapter 1
Chapter One
Planning
Directing and
Motivating
Controlling
Identify
alternatives.
Formulating long-
Begin
and short-term plans
(Planning)
Comparing actual
Implementing
to planned Decision plans (Directing
performance Making and Motivating)
(Controlling)
Measuring
performance
(Controlling)
Managerial Accounting
P resident
• Just-in-time production
• Total quality management
• Process reengineering
Business environment
• Theory of constraints changes in the past
• International competition twenty years
• E-commerce
McGraw-Hill/Irwin Copyright © 2006, The McGraw-Hill Companies, Inc.
Just-in-Time (JIT) Systems
Receive
customer Complete products
orders. just in time to
ship customers.
Schedule
production.
Reduced Flexible
setup time workforce
JIT purchasing
Fewer, but more ultrareliable suppliers.
Frequent JIT deliveries in small lots.
Defect-free supplier deliveries.
McGraw-Hill/Irwin Copyright © 2006, The McGraw-Hill Companies, Inc.
Benefits of a JIT System
More rapid
response to
Increased customer orders
throughput
Continuous
Improvement
Systematic
problem solving
using tools such is
as benchmarking
Anticipated results:
A business process Process is simplified.
is diagrammed Process is completed
in detail. in less time.
Costs are reduced.
Opportunities for
errors are reduced.
4. Recognize that
the weakest link
is no longer so.
McGraw-Hill/Irwin Copyright © 2006, The McGraw-Hill Companies, Inc.
International Competition
Increasing sophistication
in international markets.
Maintain
professional Competence
competence.
Do not use
confidential
information for Confidentiality
personal
advantage.
Do not subvert
organization’s
legitimate Integrity
objectives.
Recognize and
communicate personal and
professional limitations.
McGraw-Hill/Irwin Copyright © 2006, The McGraw-Hill Companies, Inc.
IMA Guidelines for Ethical Behavior
Communicate
unfavorable as well as
favorable information.
McGraw-Hill/Irwin Copyright © 2006, The McGraw-Hill Companies, Inc.
IMA Guidelines for Ethical Behavior
Communicate information
fairly and objectively.
Objectivity
A management accountant
who has the necessary qualifications and
who passes a rigorous professional exam earns
the right to be known as a Certified
Management Accountant (CMA).