cost

Chapter 2
COST AND MANAGEMENT

Work of Organizational Cost Roles of Ethical Standard

Management Management

Categories, activities Flow of cost in organization Controller and treasurer For management and cost
accountant

Presentation title 1
 Organizational cost
As companies grew and were organized across multiple locations, financial
accounting became less appropriate for satisfying management’s information
needs.

To prepare plans, evaluate performance, and make more complex decisions,

management needed forward looking information rather than only the
historical data provided by financial accounting.

The upstream costs (research, development, product design, and supply chain)
and downstream costs (marketing, distribution, and customer service) that
companies incurred were becoming a larger percentage of total costs

Presentation title 2
 Organizational cost

Presentation title 3
 T h e Wo r k o f M a n a g e m e n t a n d t h e
Planning and Control Cycle.

Directing and Decision-

Planning Control
motivating making

• consists of strategic • involves mobilizing is concerned with is an integral part of

planning and people to ensuring that the plan the other three
developing more is followed.
implement the plan. management
detailed short-term Accountants maintain
activities.
plans. Most of what we the databases and
refer to below is with prepare the reports that
reference to the more provide feedback to
detailed short-term managers.
plans.

Presentation title 4
 Role of Accountants and
Tr e a s u r e r
Chief Financial
Officer (CFO) or Tre a s u re r
Controller
• is the chief accountant • is responsible for:
responsible for:

 raising capital
 the supervision of the
 safeguarding assets
accounting department
 managing investments
 preparation of reports
 insurance coverage
 the interpretation of
information to line  credit policy of an
managers. organization.

Presentation title 5
 Role of Accountants and
Tr e a s u r e r

Line personnel are directly involved in carrying out the

mission of the organization (e.g., assembly workers in a
factory, doctors in a hospital, teachers in a school).

Staff personnel (accountants, lawyers, personnel directors,

and other administrative positions) provide support for the
organization's mission.

Presentation title 6
 Role of Accountants and
Tr e a s u r e r

Value Chain - The value chain is a set of value- adding

functions or processes that convert inputs into products and
services for the organization’s customers:

Presentation title 7
V
al
ue Supply
managing raw materials
Marketing
received from vendors to promoting a product
reduce costs and improve or service to current
quality and prospective
customers

c
h Design Production Distribution
ai developing
alternative product,
acquiring and
assembling resources
delivering a
product or service

n service, or process
designs
to produce a product
or render a service.
to a customer

Presentation title 8
 Value chain
Supply Customer
Research and Marketing Service
managing raw materials
Development received from vendors to promoting a product supporting customers
reduce costs and improve or service to current after the sale of a
experimenting to reduce
quality and prospective product or service
costs or improve quality
customers

Design Production Distribution

developing acquiring and delivering a
alternative product, assembling resources product or service
service, or process to produce a product to a customer
designs or render a service.

Presentation title 9
 Statement of Ethical Professional
Practice

Competence Confidentiality Integrity Credibility

Presentation title 10
 Statement of Ethical Professional
Practice

Competence Confidentiality Integrity Objectivity

Presentation title 11
 Statement of Ethical Professional
Practice

Competence Confidentiality Integrity Objectivity

Presentation title 12
 Statement of Ethical Professional
Practice

Competence Confidentiality Integrity Objectivity

Presentation title 13
 Statement of Ethical Professional
Practice

Competence Confidentiality Integrity Objectivity

Presentation title 14
 Competence Confidentiality Integrity Objectivity

Presentation title 15
 Strategic features

12 3
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Easy syncing Include images Share notes with people

Fast to use Rich metadata Single system

Presentation title 16
1. The relationship between cost and activity is termed
________________.
2. Costs that remain the same over a wide range of activity, but jump to a

12 3
different amount outside that range.
3. The range of activity within which a linear cost function is valid is
called the ________________.
4. When the number of units manufactured increases, the most significant
change in unit cost will be reflected as
_____________________________.
5. _________________ refers to the way costs respond to changes in
volume or activity.
Presentation title 17
 Strategic features

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Fast to use Rich metadata Single system

Presentation title 18
 Strategic features

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Easy syncing Include images Share notes with people

Fast to use Rich metadata Single system

Presentation title 19
Thank
thank
Thank
you
You
You
You