chap01 Changing role of managerial accounting

Managerial Accounting,ML, Zheng,单击此处编辑母版标题样式,单击此处编辑母版文本样式,第二级,第三级,第四级,第五级,*,*,Managerial Accounting,ML, Zheng,单击此处编辑母版标题样式,单击此处编辑母版文本样式,第二级,第三级,第四级,第五级,*,*,Managerial Accounting,ML, Zheng,Managerial Accounting,Meilian Zheng,Ph. D of Management Science,Mobile:,13605712287,（,672287,）,E-mail:,88868187,Public E-mail:,zjutzmlbk, Password: 110866,Objectives of this course,Broaden your knowledge on managerial accounting .,2. Improve your English especially help you to get a habit of thinking in English.,Target,Requirements in study this course:,Doing some reading as more as you can.,2. Please reflect the questions this book,mentioned or teacher told proactively .,3. Please refer to (,查阅,) some materials in,managerial accounting .,4.Discuss the questions in class or,after the class with your classmates.,5.Complete the homework on time,earnestly.,Course Contents,Chap. 1,The Changing Role of Managerial Accounting in a Dynamic Business Environment,Chap. 2,Basic Cost Management Concepts and for Mass Customization Operations,Chap. 5,Activity-Based Costing System,Chap. 7,Activity Analysis, Cost Behavior, and Cost Estimation,Chap. 8,Cost-Volume-Profit Analysis,Chap. 10,Standard Costing and Performance Measures,Chap. 12,Responsibility Accounting and Total quality Management,References,1. Management Accounting,，,Don R. Hansen,（唐,R ,汉森） 等著，第,4,版，北京大学出版社，,2005,年,2.Cost Accounting: A Managerial Emphasis, Charles T. Horngren (,查尔斯,T ,亨格瑞,),等著，第,12,版，中国人民大学出版社，,2009,年,3.,管理会计，刘兆云、孙继辉主编，科学出版社，,2009,年,Textbook,Managerial Accounting,：,Creating Value in a Dynamic Business Environment,Ronald W. Hilton(,罗纳德,W ,希尔顿,),著,第,5,版，机械工业出版社,Chapter One,-The Changing Role of Managerial Accounting in a Dynamic Business Environment,Learning Objectives,1.,Define managerial accounting and,describe its role in the management,process.,2. Review and Explain four fundamental,management processes that help,organizations attain their goals.,3. List and describe five objectives of,managerial accounting activity.,4.,Explain the major differences,between managerial and financial,accounting,.,（定义管理会计、描述其在管理过程中的作用）,（回顾并解释实现组织目标的四个基本管理环节）,（列举并描述管理会计活动的五个目标）,（说明管理会计与财务会计的区别）,5.Explain where managerial accountants,are located in an organization, in terms,of formal organization, deployment in,cross-functional teams, and physical,location.,6. Describe the roles of an organizations,chief financial officer (CFO) or,controller, treasurer, and internal,auditor.,（从组织形式、交叉职能团队安排与实际职位三方面阐述管理会计人员在组织中的定位）,（说明公司首席财务官（或总会计师）、财务主管、内部 审计师的角色）,7. Briefly describe some of the major,contemporary themes in managerial,accounting.,8.,Discuss the professional organizations,certification process, and ethical,standards in the field of managerial,accounting.,（简要描述当前管理会计的几个重要主题）,（论述管理会计领域中的专业组织、认证程序与职业道德标准）,Organizations and managerial accounting,organizations :,there are many different organizations,which have different goals.,Types of organizations,include manufacturers,retailers, service industries, agribusinesses,and nonprofit firms.,Organizations goals:,for example: growth, profit, quality, leadership, , etc.,Information needs:,Including:,financial, production, marketing, personnel, , etc.,Implementation:,Strategic Planning, Sound Decision Making,Creative and Disciplined Management,(,创造性的和严格的管理,),Case,：,the Walt Disney Company,- excelling with creative talent and sound management,Disneys Animal Kingdom,Disneys Magic Kingdom,Florida Disney-MGM Studios(,迪斯尼米高梅工作室,),Californias (Paris or Tokyo) Disneyland Resort,Organizational Mission:,Offer quality entertainment that people will seek out.,（提供人们所追求的优质娱乐）,by creative excellence, guest service, strict financial discipline,Goal:,Providing quality entertainment to its customers and attractive financial returns to its investor.,The concept of managerial accounting:,All organizations have information needs in the financial, production, personnel, environmental, and legal issues.,Managerial accounting provides some of these information.,Managerial accounting is,the process of,identifying,measuring,analyzing,interpreting, and,communicating information,in pursuit of an organizations goals.,We can define managerial accounting as follows:,A process,of identifying, measuring, analyzing, interpreting and communicating information,Help the organization attain its goals,Integral part of management process,Concept point of management accounting,Management Accounting Information Systems,Inputs,Processes,Outputs,Users,Economic Events,Collecting,Measuring,Storing,Analyzing,Reporting,Managing,Special Reports,Product Costs,Customer Costs,Budgets,Performance Reports,Personal Communication,Managers rely on many information in addition to managerial-accounting information.,Could you tell some other information,managers need in management process?,Examples of other information systems include:,economic analysis and forecasting,Marketing research,legal research and analysis,technical information,Personnel information,Environmental issue,The role of managerial accountants,internal business consultants,leadership roles,in cross-functional teams,trusted advisors, and “,business partners,.,”,The role of managerial accountants is very different now than it was even,a decade ago,.,Nowadays, managerial accountants serve as not only staff positions, they are,internal business consultants, working together with other managers from all areas of the organization.,separated from the managers , provided reports and information,Managerial accountants are important integral members of organizational management team.,The Management Process,The Management Process is defined by the following activities:,Planning,Decision making,Directing operational activity,Controlling,The,Management Process,is defined by the following activities:,Planning,requires setting,objectives,and identifying,methods,to achieve those objectives.,Management Process,Planning,Decision Making,Directing operational activities,Controlling,Strategic method or tactical method,For example: SWOT; or Developing a detailed financial and operational description of anticipated operations.,strategic goals or tactical goals; overall objectives or individual objectives,The,Management Process,is defined by the following activities:,Decision making,is the process of,choosing among competing alternatives.,Planning,Decision Making,Directing operational activities,Controlling,Management Process,Objective,Growth,Expand,some of the companys existing commercial businesses ;,Or,branch out in an entirely new field,with a brand new project.,choosing,The,Management Process,is defined by the following activities:,Directing operational activities is the process of,running the organization on day-to-day basis.,Planning,Decision Making,Directing operational activities,Controlling,Management Process,The new project has been built, equipped, and staffed,Running,Staff s Arrangement,Materials Purchase,Capital Budget,day-to-day,For example:,Planning,Decision Making,Directing operational activities,Controlling,The,Management Process,is defined by the following activities:,Controlling,is the managerial activity of monitoring a plans implementation,feedback,and,revising arrangement.,Management Process,Feedback,is information that can be used to,evaluate,or,correct the steps,being taken to implement a plan.,Management Process,ensuring goals been attained.,Controlling,means ensuring that the organization operates in the intended manner and achieve its goals.,How managerial Accounting adds value?,Provides information for decision making and planning, proactively participates in these process,Assists in directing and controlling,Motivates managers to achieve the,organizations goals,Measures performance,Assesses the organization,s,competitive position,(Balanced- scorecard),Five objectives of Managerial Accounting Activity,Provides information for decision making and planning and proactively participates in these processes.,-,（,e.g., the cost of products, budgets, cash flows ).,The information includes financial and nonfinancial,data to help managers develop strategic planning and,decision making.,A case in point, Managerial accountants provide,estimates of the cost of adding a flight on the route,from New York to Miami and actively participate,in making the decision about adding the flight.,-,in case in practice,（为决策和计划提供信息，作为管理梯队的成员积极参与决策和计划）,Assisting managers in directing and,controlling operational activities,-Managerial accounting reports rarely solve a decision,problem, but it often,directs managers attention to,highlight successful or problem areas(,注意力引导功能,),.,- And managerial accounting can analyze and compare,actual performance to budget plans.,Managerial accountants in an airline company can,provide information about the actual costs of flying,the routes in the airlines northeastern geographical,sector during a particular month.,-,A case in practice,（协助管理者指挥和控制运营活动）,Motivates managers and other employees,to achieve the organizations goals,-,As you know, most organizations often divided into,several small parts, and each part has their own,goals (objectives) which are different from the,organizations goal .,-,Managerial accounting,help the organization reach,the goal congruence,（帮助组织实现目标一致）,.,-,There are two approaches to motivate the,managers to achieve their goals.,they are,budgeting,and,empowerment,.,（激励管理者和其他雇员向组织的目标前进）,A budget,is provided for the cost of handling baggage at OHare Airport in Chicago.,The budget is given to the airlines baggage handling manager, who is expected to strive to achieve the budget.,-,a case in practice,Empowerment,means encouraging and authorizing employees to take the initiative to improve operations, reduce costs, and improve product quality and customer service.,At the Walt Disney Companys theme parks, employee are routinely asked for suggestions about ways to improve service to the parks millions of visitors.,-,a case in practice,（雇员会常规性地要求,就如何改善对数以百万计的公园游客服务,提出建议）,Measures the performance of activities, subunits, managers, and other employees within the organization,Performance measurements can be used as the basis for,rewarding performance,(,业绩奖励,),through positive feedback, promotions, and,pay raises,(,加薪,),. So, this is a method to motivate people towards the organizations goals.,At Disneys Animal Kingdom, manager could be rewarded on the basis of growth in attendance at the theme park in part.,At Handan iron and steel company, executives are rewarded on basis of operational measures, such as sales, product cost, or on-time delivery.,-,a case in practice,（计量组织内的活动、子单位、管理者和其他雇员的业绩）,Assessing the organizations competitive position and working to ensure the organizations long-run competitiveness in its industry.,One crucial role of managerial accounting is to continually assess how an organization stack up against the competition, with an eye toward continuously improving.,How well,is the organization doing in its,internal operations,?,How well,is the organization doing in,customers eyes,? Are their needs served as well as possible,？,How well,is the organization doing from the standpoint of,innovation and learning,? Is the organization continuously improving operations? Is it a trendsetter,(,领先者,),in view of new products, services?,How well,is the organization doing in,financiall,y? Is it seen as,a continuing entity,(,一个持续经营主体,),?,（评价组织的竞争地位，努力确保组织在本行业的长期竞争力）,The Balanced Scorecard,Financial Perspective,Goals,Measures,Customer Perspective,Goals Measures,Operations Perspective,Goals Measures,Innovation Perspective,Goals Measures,How do we look to owners?,How do customers see us?,How can we continue to improve?,In which activities must we excel?,Cost effectiveness,Customers needs and satisfaction,Financial strength,Keeping up with the times,Focus:,America,：,60,Europe,：,50,Australia,：,40,Singapore,：,70,South-east Asian and Japan,：,35,China,： ？,The Balanced Scorecard,Conceptual Framework of Management Accounting,Cost Accumulation and Product Costing (cost accounting system),Know your costs,The role of indirect costs,Planning & Controlling Systems,Focus on how organizations run by delegation & accountability,Information asymmetry results in difficulty assessing goal congruence. We assume economically rational decision makers who have their own goals within the organization,Managerial Decision Making and Performance Measuring,What difference will it make when a choice is to be made between alternative courses of action?,We assume economically-rational organizations and what is good for the sub-unit is good for the organization as a whole.,Managerial,&,Financial Accounting,Accounting System,(accumulates financial and,managerial accounting data),Managerial Accounting,Information for decision,making, planning, directing, and controlling an organizations operations.,Financial Accounting,Published financial,statements and other,financial reports.,Internal,Users,External,Users,Management Accounting,Financial Accounting,1.Internally focused,1.Externally focused,2.No mandatory rules,2.Must follow externally imposed rules,3.Financial and nonfinancial information; subjective information possible,3.Objective financial information,4.Emphasis on the future,4.Historical orientation,5.Internal evaluation and decisions based on very detail information,5.Information about the firm as a whole,6.Broad, multidisciplinary(,包括各种学科的,),6.More self-contained(,独立的,),Management accounting focuses on providing information for,internal users,.,Targeted Users,Managers at all levels in the organization,ABC Company Annual Report,Financial accounting focuses on provided information for,external users,.,Targeted Users,Stockholder, financial analyst, lender, governmental agency,Restrictions on Inputs and Processes,Management accounting is not subject to the requirements of generally accepted accounting principles.,Financial accounting reporting must follow the accounting procedures set by the SEC, the FASB and the GAAP.,FASB: Financial Accounting Standards Board,GAAP: Generally,Accepted,Accounting,Principles,SEC: Securities of exchanges commission,Types of Information,The restrictions imposed on financial accounting tend to produce objective and verifiable financial information.,For management accounting, the financial or nonfinancial information may be much more subjective in nature.,Time,Orientation,Management accounting strongly emphasizes providing information about,future events,.,Financial accounting records and reports events that have already happened, namely, it is,historical orientation,Time,Orientation,Management accounting provides measures and internal reports used the evaluate performance of entities, product lines, departments, and managers. It is,detail,.,Degree of Aggregation(,综合程度,),Financial accounting focuses on,overall,firm performance.,Degree of Aggregation,Management accounting is much broader than financial accounting.,Managerial accounting includes aspects of managerial economics, industrial engineering, and management science.,Breadth,Line and Staff Positions,A,line position,is directly involved in achieving the basic objectives of an organization.,Example:,A production supervisor in a manufacturing plant.,A,staff position,supports and assists line positions.,Example:,A cost accountant in the manufacturing plant.,Role Of Managerial accountants,CFO Or Controller,The chief managerial and financial accountant,responsibility for:,Financial planning and analysis.,Cost control.,Financial reporting.,Accounting information systems.,Treasurer,Responsible for,raising capital,and,safeguarding the organization,s assets,.,Supervises relationships with financial institutions.,Work with investors and potentialinvestors.,Manages investments.,Establishes credit policies.,Determines organizational insurance,coverage.,Internal Auditor,Responsible for,reviewing accounting procedures, records, and reports in both the controllers and the treasurers area of responsibility,.,Expresses an opinion to topmanagement regarding theeffectiveness of theorganizations accountingsystem,.,Role of Managerial Accountant (continued),Managerial Accountant is located in,every part of an enterprise, from corporate headquarters to the locations where goods and services are being produced.,Major Themes in Managerial Accounting,Managerial,Accounting,Information,and Incentives,Behavioral,Issues,Costs and,Benefits,Evolution and,Adaptation,Cost Management,System,Historical Description ofManagement Accounting,1880 - 1925Most of the product-costing and internal accounting procedures used in this century were developed,1925Emphasis changes to inventory costing for external reporting,1950s/60sSome effort to improve the managerial usefulness of traditional cost systems,1980s/90sSignificant efforts have been made to develop a new management accounting system,Evolution and Adaptation in Managerial Accounting,Service Vs. Manufacturing,Firms,Emergence of New,Industries,Global Competition,Focus on the Customer,Cross-Functional Teams,Computer-Integrated,Manufacturing,Product Life Cycles,Time-Based Competition,Information and,Communication,Technology,Just-in-Time Inventory,Total Quality,Management,Continuous Improvement,Change,Changes in the Business environment,Cost Management Systems,Objectives,Measure the cost of resources consumed.,Identify and eliminate non-value-added costs,.,CostManagementSystem,Cost Management Systems,Objectives,Measure the cost of resources consumed.,Identify and eliminate non-value-added costs.,Determine efficiency and effectiveness of major activities.,Identify and evaluate new activities that can improve performance.,The emphasis of cost management system is,organizations activities.,Activity-based Costing (ABC) System,Product,Design,Research,and,Development,Strategic Cost Management and,the Value Chain,Securing raw,materials and,other resources,Production,Marketing,Distribution,Customer,Service,Start,Manufacturers Value Chain,Some activities in the value chain of a manufacturer,of cotton shirts are as follows:,(a)Growing and harvesting cotton,(b)Transporting raw materials,(c)Designing shirts,(d)Weaving cotton material,(e)Manufacturing shirts,(f )Advertising cotton shirts,Transporting shirts to retailers,Customer service,Some activities in the value chain of an airline are as,follows:,(a)Making reservations and ticketing(,制作票务,),(b)Designing the route network,（设计航线网