Chapter 1 and Chapter 2

Chapter 1 and Chapter 2 - • Formulate strategy(Plan •...

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Chapter 1 – Managerial Accounting and the Business Environment 1. Lean Production a. Manufacturing cell b. Small inventories c. Ultra-suppliers Train workers to do more than one job (eliminate assembly line) and inspect/fix products before they leave “Push” approach : keep people busy, unfinished products build up, organized chaos “Pull” approach : pull from customer up, everything arrives “just in time” – customer drives production Small lots, frequent deliveries, quality system 2. Theory of Constraints Find bottleneck (weakest link) Diagram steps o Ex. Visits at a doctor’s office – weakest link is time sitting in the lobby) Back off to what the link can handle Fix it Find the next weakest link – continuous chain Chapter 2 – Managerial Accounting and Cost Concepts Management accountant – working within company I. What do managers do?
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Unformatted text preview: • Formulate strategy (Plan) • Make plans (Plan) • Organize resources (Direct) • Direct personnel (Direct) • Control operations (Control) Do job within scope of 3 activities:-Planning-Motivating/directing-Controlling 1. Planning • Formulate strategy (goal) • ID alternatives and select the best one o Part of evaluation: impact revenues/expenses o Budgets: plans in quantitative form prepared annually 2. Directing Motivating • Oversee day-to-day activities • Encourage personnel • Performance evaluation data 3. Controlling • Is the plan being followed? Was it successful? • Feedback – compare actual cost w/ budgeted cost • Use performance report – points out weak points in operations or implementing the plan Decision Model: Plan Direct/Motivate Control Make Changes...
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This note was uploaded on 08/25/2010 for the course ACCT 208 taught by Professor Kingery during the Spring '08 term at University of Delaware.

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Chapter 1 and Chapter 2 - • Formulate strategy(Plan •...

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