lesson1_ma1 CGA

Imports into the United States
300 US Imports (billions of $) 250 Canada 200 150 100 50 China Germany Japan Mexico United Kingdom
1990
1995
2000
2004
ቤተ መጻሕፍቲ ባይዱ
Years
A member of the top management team responsible for:
– Providing timely and relevant data to support planning and control activities. – Preparing financial statements for external users.
Managerial Accounting
Managers who plan for and control an organization Future emphasis Emphasis on relevance for planning and control Emphasis on timeliness Focuses on segments of an organization Need not follow GAAP or any prescribed format Not Mandatory
Lesson 1 Overview
Explains the differences and similarities between financial and managerial accounting; Describes the role of management accountants in an organization; Explains the basic concepts underlying Lean Production, the Theory of Constraints (TOC), and Six Sigma. Discusses the importance of upholding ethical standards.
Planning and Control Cycle
Formulating longand short-term plans (Planning) Comparing actual to planned performance (Controlling)
Begin
Decision Making
Implementing plans (Directing and Motivating)
Understand classifications of costs for different purposes.
external financial reports, predicting cost behavior, assigning costs to cost objects, and making business decisions.
R&D
Product Design
Customer Manufacturing Marketing Distribution Service
Business functions making up the value chain
Staff positions support and assist line positions.
– Example: Cost accountants in the manufacturing plant.
Topic 1.4 Process Management
New tools for managers!
Identify alternatives.
Select alternative that does the best job of furthering organization’s objectives. Develop budgets to guide progress toward the selected alternative.
Customer Value Propositions
Customer Intimacy Strategy Understand and respond to individual customer needs.
Operational Excellence Strategy
Deliver products and services faster, more conveniently, and at lower prices.
Topic 1.3 Organization Structure
Decentralization is the delegation of decisionmaking authority throughout an organization.
Corporate Organization Chart
Product Leadership Strategy
Offer higher quality products.
Topic 1.1 Managerial Accounting Activities
Planning Directing and Motivating
Controlling
Planning
Board of Directors President Purchasing Personnel Vice President Operations Chief Financial Officer Controller
P10 Exhibit 1-4
Treasurer
The Chief Financial Officer (CFO)
Lesson 1
Basic Concepts of Management Accounting
Contents
Topic 1.1 Managerial Accounting Activities Topic 1.2 Financial Accounting & Managerial Accounting Topic 1.3 Organization Structure Topic 1.4 Process Management Topic 1.5 Ethical Standards Topic 1.6 General Cost Classifications Topic 1.7 Cost Classifications on financial statements Topic 1.8 Cost classifications for cost behavior patterns Topic 1.9 Cost classification for decision making Topic 1.10 Labor cost classifications
Exports from the United States
200 US Exports (billions of $) 180 160 140 120 100 80 60 40 20 Years
Canada China Germany Japan Mexico United Kingdom
1990 1995 2000 2004
Strategy
A strategy is a “game plan” that enables a company to attract customers by distinguishing itself from competitors.
The focal point of a company’s strategy should be its target customers.
Lean Production Theory of Constraints Six Sigma
Process Management
A business process is a series of steps that are followed in order to carry out some task in a business.
Directing and Motivating
Directing and motivating involves managing day-to-day activities to keep the organization running smoothly.
– – – – Employee work assignments. Routine problem solving. Conflict resolution. Effective communications.
Controlling
The control function ensures that plans are being followed. Feedback in the form of performance reports that compare actual results with the budget are an essential part of the control function.
Measuring performance (Controlling)
Topic 1.2 Company Financial and Managerial Accounting
Managerial accounting provides information for managers inside an organization who direct and control its operations. Financial accounting provides information to stockholders, creditors and others who are outside the organization.