Ch 1 - Managerial Accountning and the Business Environment.ppt

7/24/2019 Ch 1 - Managerial Accountning and the Business Environment.ppt

1/50

Chapter 1

Managerial Accounting and

the Business Environment

Dr. Yean Rithy


2/50

1-2

Imports into the United States

-

50

100

150

200

250

300

Years

USImports(b

illionso!"

Canada

China

GermanyJapan

Mexico

United Kindom

1!!0 1!!5 2000 200"


3/50

1-#

E$ports rom the United States

-20

"0

#0

$0

100

120

1"0

1#0

1$0200

Years

USE$ports(b

illionso!"

Canada

China

GermanyJapan

Mexico

United Kindom

1!!0 1!!5 2000 200"


4/50

1-%

Internet Usage

%he &nternet '(e)* )o+a)i,ation

+y proidin companie* ith reater

acce** to eoraphica))y di*per*edc(*tomer*/ emp)oyee*/ and *(pp)ier*.

%he &nternet '(e)* )o+a)i,ation

+y proidin companie* ith reater

acce** to eoraphica))y di*per*edc(*tomer*/ emp)oyee*/ and *(pp)ier*.

%he n(m+er o' internet (*er* more

than do(+)ed d(rin the 'ir*t 'o(r

year* o' the ne mi))enni(m.

%he n(m+er o' internet (*er* more

than do(+)ed d(rin the 'ir*t 'o(r

year* o' the ne mi))enni(m.


5/50

1-&

Strateg'

*trateyi* a ame p)an

that ena+)e* a company

to attract c(*tomer*+y di*tin(i*hin it*e)''rom competitor*.

%he 'oca) point o' a

company* *tratey *ho()d

+e it* taret c(*tomer*.

%he 'oca) point o' a

company* *tratey *ho()d

+e it* taret c(*tomer*.


6/50

1-

)ustomer *alue +ropositions

Under*tand and re*pond to

indiid(a) c(*tomer need*.

Under*tand and re*pond to

indiid(a) c(*tomer need*.

C(*tomer&ntimacy

4tratey

perationa)

6xce))ence

4tratey

De)ier prod(ct* and *erice*

'a*ter/ more conenient)y/

and at )oer price*.

De)ier prod(ct* and *erice*

'a*ter/ more conenient)y/

and at )oer price*.

7rod(ct

8eader*hip

4tratey''er hiher 9(a)ity prod(ct*.

''er hiher 9(a)ity prod(ct*.


7/50

1-,

or. o Management

+lanning+lanning

)ontrolling)ontrolling

/irecting and

Motivating

/irecting and

Motivating


8/50

1-0

+lanning

&denti'y

a)ternatie*.

&denti'y

a)ternatie*.

4e)ect a)ternatie that doe*

the +e*t :o+ o' '(rtherin

orani,ation* o+:ectie*.

4e)ect a)ternatie that doe*

the +e*t :o+ o' '(rtherin

orani,ation* o+:ectie*.

Dee)op +(det* to (ide

prore** toard the

*e)ected a)ternatie.

Dee)op +(det* to (ide

prore** toard the

*e)ected a)ternatie.


9/50

1-

/irecting and Motivating

Directin and motiatin ino)e* manain

day-to-day actiitie* to ;eep the orani,ation

r(nnin *mooth)y.

6mp)oyee or; a**inment*.

Ro(tine pro+)em *o)in.

Con')ict re*o)(tion.

6''ectie comm(nication*.


10/50

1-1

)ontrolling

3he control unction ensures

that plans are being ollo4ed5

3he control unction ensures

that plans are being ollo4ed5

6eedbac. in the orm o perormance reportsthat compare actual results 4ith the budget

are an essential part o the control unction5

6eedbac. in the orm o perormance reportsthat compare actual results 4ith the budget

are an essential part o the control unction5


11/50

1-11

+lanning and )ontrol )'cle

Deci*ion

Ma;in

6ormulating long-

and short-term plans

(+lanning"

6ormulating long-

and short-term plans

(+lanning"

Measuring

perormance

()ontrolling"

Measuring

perormance

()ontrolling"

Implementing

plans (/irecting

and Motivating"

Implementing

plans (/irecting

and Motivating"

)omparing actual

to planned

perormance

()ontrolling"

)omparing actual

to planned

perormance

()ontrolling"


12/50

1-12

7earning 8b9ective 1

&denti'y the ma:or&denti'y the ma:or

di''erence* and *imi)aritie*di''erence* and *imi)aritie*

+eteen 'inancia) and+eteen 'inancia) and

manaeria) acco(ntin.manaeria) acco(ntin.

)


13/50

1-1#

)omparison o 6inancial andManagerial Accounting

1 1%


14/50

1-1%

7earning 8b9ective 2

Under*tand the ro)e o'Under*tand the ro)e o'manaement acco(ntant*manaement acco(ntant*

in an orani,ation.in an orani,ation.

1 1&


15/50

1-1&

) o r p o r a t e 8 r g a n i : a t i o n ) h a r t

+ u r c h a s i n g + e r s o n n e l * i c e + r e s i d e n t

8 p e r a t i o n s

3 r e a s u r e r ) o n t r o l l e r

) h i e 6 i n a n c i a l

8 i c e r

+ r e s i d e n t

B o a r d o / i r e c t o r s

8rgani:ational Structure

/ecentrali:ation is the delegation o decision-ma.ing authorit' throughout an organi:ation5

/ecentrali:ation is the delegation o decision-ma.ing authorit' throughout an organi:ation5

1 1


16/50

1-1

7ine and Sta ;elationships

8ine po*ition* are direct)yre)ated to achieement o'the +a*ic o+:ectie* o' anorani,ation.

6xamp)e= 7rod(ction*(peri*or* in aman('act(rin p)ant.

4ta'' po*ition* *(pportand a**i*t )ine po*ition*.

6xamp)e= Co*tacco(ntant* in the

man('act(rin p)ant.

1 1,


17/50

1-1,

3he )hie 6inancial 8icer ()68"

mem+er o' the top manaement team

re*pon*i+)e 'or=

7roidin time)y and re)eant data to *(pport

p)annin and contro) actiitie*.

7reparin 'inancia) *tatement* 'or externa) (*er*.

1 10


18/50

1-10

7earning 8b9ective #

Under*tand the +a*icUnder*tand the +a*ic

concept* (nder)yin 8eanconcept* (nder)yin 8ean7rod(ction/ the %heory o'7rod(ction/ the %heory o'

Con*traint*/ and 4ixCon*traint*/ and 4ix

4ima.4ima.

1 1


19/50

1-1

+rocess Management

Business unctions ma.ing up the value chain

7rod(ct C(*tomer

R>D De*in Man('act(rin Mar;etin Di*tri+(tion 4erice

+(*ine**proce** i* a *erie* o'

*tep* that are 'o))oed in order to

carry o(t *ome ta*; in

a +(*ine**.

1 2


20/50

1-2

+rocess Management

%here are three approache* toimproin +(*ine** proce**e* . . .

7ean

+roduction

3heor' o

)onstraints (38)"Si$

Sigma

1-21 3 diti l


21/50

1-21 3raditional


22/50

1-22

%raditiona) p(*hman('act(rin

3raditional uiring more 4or. beore

the' are read' or sale5

+artiall' completed productsre>uiring more 4or. beore

the' are read' or sale5

1-2# Exhibit


23/50

1 2#

7ean +roductionExhibit

1-6

%he )ean thin;in

mode) i* a 'ie

*tep approach.

%he )ean thin;in

mode) i* a 'ie

*tep approach.

&denti'y a)(ein *peci'ic

prod(ct*A*erice*.

&denti'y a)(e

in *peci'ic

prod(ct*A*erice*.

&denti'y the+(*ine** proce**

that de)ier* a)(e.

&denti'y the

+(*ine** proce**

that de)ier* a)(e.

rani,e or;

arranement* aro(nd

the ')o o' the

+(*ine** proce**.

rani,e or;

arranement* aro(nd

the ')o o' the

+(*ine** proce**.

Create a p())

*y*tem that re*pond*

to c(*tomer order*.

Create a p())

*y*tem that re*pond*

to c(*tomer order*.

Contin(o(*)y p(r*(e

per'ection in the

+(*ine** proce**.

Contin(o(*)y p(r*(e

per'ection in the

+(*ine** proce**.

1-2%


24/50

1 2%

C(*tomer 7)ace*

an rder

Create 7rod(ction

rder

Generate Component

Re9(irement*

7rod(ction


25/50

1 2&

7ean +roduction

8ean thin;in may +e (*ed to improe +(*ine**

proce**e* that )in; companie* toether.

%he term supply chain managementre'er* to

the coordination o' +(*ine** proce**e* acro**

companie* to +etter *ere end con*(mer*.

1-2


26/50

con*traintBa)*o ca))ed a +ott)enec; i* anythin thatpreent* yo( 'rom ettin more o' hat yo( ant.

%he %heory o' Con*traint* i* +a*ed on the o+*eration thate''ectie)y manain the con*traint i* the ;ey to *(cce**.

%he con*traint in a *y*tem i* determined

+y the *tep that ha* the *ma))e*t capacity.

%he con*traint in a *y*tem i* determined

+y the *tep that ha* the*ma))e*t capacity.

3heor' o )onstraints

1-2,


27/50

%5 ;ecogni:e that

the 4ea.est lin.

is no longer so5

%5 ;ecogni:e that

the 4ea.est lin.

is no longer so5

15 Identi' the

4ea.est lin.5

15 Identi' the

4ea.est lin.5

25 Allo4 the

4ea.est lin. to

set the tempo5

25 Allo4 the4ea.est lin. to

set the tempo5

#5 6ocus on

improving

the 4ea.est

lin.5

#5 6ocus on

improving

the 4ea.est

lin.5

8nl' actionsthat strengthen

the 4ea.est lin.

in the


28/50

Si$ Sigma

proce** improement method re)yin on c(*tomer'eed+ac; and 'act-+a*ed data atherin and ana)y*i*

techni9(e* to drie proce** improement.

proce** improement method re)yin on c(*tomer'eed+ac; and 'act-+a*ed data atherin and ana)y*i*

techni9(e* to drie proce** improement.

Re'er* to a proce** that enerate* no morethan 3." de'ect* per mi))ion opport(nitie*.

Re'er* to a proce** that enerate* no morethan 3." de'ect* per mi))ion opport(nitie*.

4ometime* a**ociatedith the term zero defects.

4ometime* a**ociated

ith the term zero defects.

1-2 Exhibit


29/50

Si$ Sigma

Stage ?oals/eine @ Establish the scope and purpose o the pro9ect5

@ /iagram the lo4 o the current process5

@ Establish the customers re>uirements or the

process5

Measure @ ?ather baseline perormance data related to

the e$isting process5

@ arro4 the scope o the pro9ect to the most

important problems5

Anal':e @ Identi' the root cause(s" o the problems identiied in the Measure stage5

Improve @ /evelopC evaluateC and implement solutions

to the problems5

)ontrol @ Ensure that problems remain i$ed5

@ See. to improve the ne4 methods over time5

3he Si$ Sigma/MAI)6rame4or.

1-8

1-#


30/50

E-)ommerce

6-commerce re'er* to +(*ine**cond(cted (*in the &nternet.

6-commerce re'er* to +(*ine**cond(cted (*in the &nternet.

&n addition to dot.com companie*/ traditiona)

+(*ine**e*/ *(ch a* +an;* and retai)er*/

contin(e to expand their &nternet pre*ence.

&n addition to dot.com companie*/ traditiona)

+(*ine**e*/ *(ch a* +an;* and retai)er*/

contin(e to expand their &nternet pre*ence.

%he roth in e-commerce i* occ(rrin+eca(*e the &nternet ha* important adantae*

oer more conentiona) mar;etp)ace* 'or many

;ind* o' tran*action*.

%he roth in e-commerce i* occ(rrin+eca(*e the &nternet ha* important adantae*

oer more conentiona) mar;etp)ace* 'or many

;ind* o' tran*action*.

1-#1


31/50

Enterprise S'stems

*in)e *o'tare *y*tem thatinterate* data acro** an orani,ation/

there+y ena+)in a)) emp)oyee* to

hae *im()taneo(* acce** to a

common *et o' data.

)) data are recorded on)y

once in the company*

centra)i,ed data+a*e.

)) data are recorded on)y

once in the company*

centra)i,ed data+a*e.

%he (ni9(e data e)ement*

contained ithin a data+a*e

can +e )in;ed toether.

%he (ni9(e data e)ement*

contained ithin a data+a*e

can +e )in;ed toether.

1-#2


32/50

7earning 8b9ective %

Under*tand theUnder*tand theimportance o' (pho)dinimportance o' (pho)din

ethica) *tandard*.ethica) *tandard*.

1-##

)ode o )onduct or


33/50

)ode o )onduct orManagement Accountants

%he &n*tit(te o' Manaement cco(ntant* B&M4tandard* o' 6thica) Cond(ct 'or 7ractitioner*

o' Manaement cco(ntin and ?inancia)

Manaement hae to ma:or part*/hich o''er (ide)ine* 'or=

6thica) +ehaior.

Re*o)(tion 'or an ethica) con')ict.

1-#%


34/50

)ompetence)ompetence6ollo4 applicable

la4sC regulations

and standards5

6ollo4 applicable

la4sC regulations

and standards5

Maintain

proessional

competence5

Maintain

proessional

competence5

+rovide accurateC clearC

conciseC and timel' decision

support inormation5

+rovide accurateC clearC

conciseC and timel' decision

support inormation5

IMA ?uidelines or Ethical Behavior

;ecogni:e andcommunicate proessional

limitations that preclude

responsible 9udgment5

;ecogni:e and

communicate proessional

limitations that preclude

responsible 9udgment5

1-#&


35/50

)onidentialit')onidentialit'

/o not disclose conidential

inormation unless legall'

obligated to do so5

/o not disclose conidentialinormation unless legall'

obligated to do so5

Ensure that subordinates do

not disclose conidential

inormation5

Ensure that subordinates do

not disclose conidential

inormation5

/o not useconidential

inormation or

unethical or illegal

advantage5

/o not useconidential

inormation or

unethical or illegal

advantage5


1-#


36/50

Mitigate conlicts o

interest and advise others

o potential conlicts5

Mitigate conlicts o

interest and advise others

o potential conlicts5

Abstain rom activities that

might discredit the

proession5

Abstain rom activities that

might discredit the

proession5

;erain rom

conduct that

4ould pre9udice

carr'ing out

duties ethicall'5

;erain romconduct that

4ould pre9udice

carr'ing out

duties ethicall'5

Integrit'Integrit'


1-#,


37/50

)ommunicate inormationairl' and ob9ectivel'5

)ommunicate inormationairl' and ob9ectivel'5

/isclose all relevantinormation that could

inluence a userDs

understanding o reports

and recommendations5

/isclose all relevant

inormation that could

inluence a userDs

understanding o reports

and recommendations5

)redibilit')redibilit'


/isclose dela's or

deiciencies in inormationtimelinessC processingC or

internal controls5

/isclose dela's or

deiciencies in inormationtimelinessC processingC or

internal controls5

1-#0

IMA ?uidelines or ;esolution


38/50

6ollo4 emplo'erDs established policies5 6or unresolved ethical conlicts

Di*c(** the con')ict ith immediate *(peri*or ornext hihe*t (nino)ed manaer.

&' immediate *(peri*or i* the C6/ con*ider the+oard o' director* or the a(dit committee.

Contact ith )ee)* a+oe the immediate*(peri*or *ho()d on)y +e initiated ith the

*(peri*or* ;no)ede/ a**(min the *(peri*ori* not ino)ed.

IMA ?uidelines or ;esolutiono an Ethical )onlict

1-#

IMA ?uidelines or ;esolution


39/50

6ollo4 emplo'erDs established policies5

6or unresolved ethical conlicts

6xcept here )ea))y pre*cri+ed/ maintain

con'identia)ity. C)ari'y i**(e* in a con'identia) di*c(**ion ith

an o+:ectie adi*or.

Con*()t an attorney a* to )ea) o+)iation*.

IMA ?uidelines or ;esolutiono an Ethical )onlict

1-%

h F Ethi l St d d G


40/50

+andonin ethica) *tandard* in +(*ine** o()d

)ead to a )oer 9(a)ity o' )i'e ith )e**

de*ira+)e ood* and *erice* at hiher price*.

h' Fave Ethical StandardsG

@itho(t ethica) *tandard* in +(*ine**/ the

economy/ and a)) o' (* ho depend on it 'or

:o+*/ ood*/ and *erice*/ o()d *(''er.

6thica) *tandard* in +(*ine** are e**entia) 'or a

*mooth '(nctionin adanced mar;et economy.

6thica) *tandard* in +(*ine** are e**entia) 'or a

*mooth '(nctionin adanced mar;et economy.

1-%1

) ) d ) d t


41/50

)ompan' )odes o )onduct

6mp)oyee*6mp)oyee* C(*tomer*C(*tomer* 4(pp)ier*4(pp)ier*

nd to the comm(nitie* in

hich the company operate*.

nd to the comm(nitie* in

hich the company operate*.


42/50

)odes o )onduct onthe International 7evel

&n addition to competence/ o+:ectiity/ independence/

and con'identia)ity/ the &?C* code dea)* ith

the acco(ntant* ethica) re*pon*i+i)itie* in=

%axe*

&ndependence?ee* and commi**ion*

derti*in and *o)icitation

and)in o' monie*

Cro**-+order actiitie*.

&n addition to competence/ o+:ectiity/ independence/

and con'identia)ity/ the &?C* code dea)* ith

the acco(ntant* ethica) re*pon*i+i)itie* in=

%axe*

&ndependence?ee* and commi**ion*

derti*in and *o)icitation

and)in o' monie*

Cro**-+order actiitie*.

%he Code o' 6thic* 'or 7ro'e**iona)cco(ntant*/ i**(ed +y the &nternationa)

?ederation o' cco(ntant* B&?C/ oern the

actiitie* o' pro'e**iona) acco(ntant* or)dide.

%he Code o' 6thic* 'or 7ro'e**iona)cco(ntant*/ i**(ed +y the &nternationa)

?ederation o' cco(ntant* B&?C/ oern the

actiitie* o' pro'e**iona) acco(ntant* or)dide.

1-%#

) t ?


43/50

)orporate ?overnance

3he s'stem b'

4hich a compan' is directed

and controlled5

3he s'stem b'4hich a compan' is directed

and controlled5


44/50

)orporate ?overnance

And the communities in

4hich the compan' operates5

And the communities in

4hich the compan' operates5

n e''ectie corporate oernance *y*tem*ho()d a)*o protect the intere*t* o' the

company* other sta.eholders.

n e''ectie corporate oernance *y*tem*ho()d a)*o protect the intere*t* o' the

company* other sta.eholders.

6mp)oyee*6mp)oyee* C(*tomer*C(*tomer* 4(pp)ier*4(pp)ier*Creditor*Creditor*

1-%&

3h S b 8 l A t 22


45/50

3he Sarbanes-8$le' Act o 22

%he 4ar+ane*-x)ey ct o' 2002 a* intended to protect the

intere*t* o' tho*e ho ine*t in p(+)ic)y traded companie* +y

improin the re)ia+i)ity and acc(racy o' corporate 'inancia)

report* and di*c)o*(re*. 4ix ;ey a*pect* o' the )ei*)ation inc)(de=

%he ct re9(ire* +oth the C6 and C? to certi'y in ritin

that their company* 'inancia) *tatement* and di*c)o*(re*

'air)y repre*ent the re*()t* o' operation*.

%he ct e*ta+)i*he* the 7(+)ic Company cco(ntin er*iht


46/50

3he Sarbanes-8$le' Act o 22

%he ct re9(ire* that a company* ann(a) report contain an

interna) contro) report that i* accompanied +y an opinion 'rom

the company* a(dit 'irm a+o(t the 'airne** o' that report.

%he ct e*ta+)i*he* *eere pena)tie* 'or certain +ehaior*/

*(ch a*=

E Up to 20 year* in pri*on 'or a)terin or de*troyin anydoc(ment* that may eent(a))y +e (*ed in an o''icia)

proceedin.

E Up to 10 year* in pri*on 'or reta)iatin aain*t ahi*t)e +)oer.

%he ct re9(ire* that a company* ann(a) report contain aninterna) contro) report that i* accompanied +y an opinion 'rom

the company* a(dit 'irm a+o(t the 'airne** o' that report.

%he ct e*ta+)i*he* *eere pena)tie* 'or certain +ehaior*/

*(ch a*=E Up to 20 year* in pri*on 'or a)terin or de*troyin any

doc(ment* that may eent(a))y +e (*ed in an o''icia)

proceedin.

E Up to 10 year* in pri*on 'or reta)iatin aain*t ahi*t)e +)oer.

1-%,

E t i ;i . M t


47/50

Enterprise ;is. Management

proce** (*ed+y a company to

proactie)y identi'y

and manae ri*;.

nce a company identi'ie* it* ri*;*/ perhap* the

mo*t common ri*; manaement tactic i* to red(ce

ri*;* +y imp)ementin *peci'ic contro)*.

nce a company identi'ie* it* ri*;*/ perhap* the

mo*t common ri*; manaement tactic i* to red(ce

ri*;* +y imp)ementin *peci'ic contro)*.

4ho()d & try to aoid the ri*;/*hare the ri*;/ accept the

ri*;/ or red(ce the ri*;F

1-%0

E t i ;i . M t


48/50

Enterprise ;is. Management

E$amples o )ontrols to

E$amples o Business ;is.s ;educe Business ;is.s

@ +roducts harming customers @ /evelop a ormal and rigorous

ne4 product testing program

@ 7osing mar.et share due to the @ /evelop an approach or legall'

unoreseen actions o competitors gathering inormation about

competitors plans and practices

@ +oor 4eather conditions shutting @ /evelop contingenc' plans or

do4n operations overcoming 4eather-relateddisruptions

@ ebsite malunction @ 3horoughl' test the 4ebsite

beore going HliveH on the Internet

@ A supplier stri.e halting the lo4 @ Establish a relationship 4ith t4o

o ra4 materials companies capable o providing

ra4 materials

@ 6inancial statements unairl' @ )ount the ph'sical inventor' on

reporting the value o inventor' hand to ma.e sure that it agrees

4ith the accounting records

@ An emplo'ee accessing @ )reate pass4ords barriers that

unauthori:ed inormation prohibit emplo'ees rom obtaining

inormation not needed to do their

9obs

1-%

)ertiied Management Acco ntant


49/50

)ertiied Management Accountant

A management accountant

4ho has the necessar' >ualiications and

4ho passes a rigorous proessional e$am earns

the right to be .no4n as a )ertiiedManagement Accountant ()MA"5

A management accountant

4ho has the necessar' >ualiications and

4ho passes a rigorous proessional e$am earns

the right to be .no4n as a )ertiiedManagement Accountant ()MA"5

&n'ormation a+o(t +ecomin a CM and the CM

proram can +e acce**ed on the &M* e+*ite at

.imanet.oror +y ca))in 1-$00-#3$-""2.

&n'ormation a+o(t +ecomin a CM and the CM

proram can +e acce**ed on the &M* e+*ite at

.imanet.oror +y ca))in 1-$00-#3$-""2.

1-&

End o )hapter 1
http://www.imanet.org/http://www.imanet.org/http://www.imanet.org/http://www.imanet.org/


50/50

End o )hapter 1

Documents

Ch 1 - Managerial Accountning and the Business Environment.ppt