CHAPTER 1 - CHAPTER 1 The Changing Role of Managerial...

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Unformatted text preview: CHAPTER 1 The Changing Role of Managerial Accounting (Managerial Accounting as a Career) Managerial Accounting By: Prof. Lizardo UNIBE / FIU Managerial Accounting By: Prof. Lizardo UNIBE / FIU Managerial Accounting as a Career Managing Resources, Activities, and People An organization . . . Acquires Resources Decision Making Organized set of activities Controlling Hires People Directing Planning Managerial Accounting By: Prof. Lizardo UNIBE / FIU Managerial Accounting as a Career How Managerial Accounting Adds Value to the Organization T Providing information for decision making and planning. Providing planning T Assisting managers in directing and controlling activities. Assisting directing controlling T Motivating managers and other employees towards Motivating organization’s goals. organization T Measuring performance of activities, managers, and other Measuring employees. employees. T Assessing the organization’s competitive position. Managerial Accounting By: Prof. Lizardo UNIBE / FIU How do we look How to owner’s? to Managerial Accounting as a Career The Balanced Scorecard Financial Perspective Goals Measures In which activities In must we excel? must Customer Perspective Goals Measures Operations Perspective Goals Measures How do customers How see us? see Innovation Perspective Goals Measures How can we How continue to improve? improve? Managerial Accounting By: Prof. Lizardo UNIBE / FIU Managerial Accounting as a Career Managerial versus Financial Accounting Accounting System (accumulates financial and managerial accounting data) Managerial Accounting Information for decision making, and control of an organization’s operations. Internal Users Financial Accounting Published financial statements and other financial reports. External Users Managerial Accounting By: Prof. Lizardo UNIBE / FIU Managerial Accounting as a Career Managerial versus Financial Accounting Managerial Accounting By: Prof. Lizardo UNIBE / FIU Managerial Accounting as a Career Line and Staff Positions T A line position is directly involved in achieving the basic objectives of an organization. organization. q Example: A production Example: supervisor in a manufacturing plant. manufacturing T A staff position supports and assists line positions. line q Example: A cost Example: accountant in the manufacturing plant. manufacturing Managerial Accounting as a Career Managerial Accounting By: Prof. Lizardo UNIBE / FIU Controller The chief managerial and financial accountant responsibility for: q Financial planning and analysis. q Cost control. q Financial reporting. q Accounting information systems. Managerial Accounting By: Prof. Lizardo UNIBE / FIU Managerial Accounting as a Career Treasurer - Responsible for raising capital and safeguarding the organization’’s assets. s assets. safeguarding - Supervises relationships with financial institutions. institutions. - Work with investors and potential Work investors. - Manages investments. Manages - Establishes credit policies. Managerial Accounting By: Prof. Lizardo UNIBE / FIU Managerial Accounting as a Career Internal Auditor Responsible for reviewing accounting procedures, records, and reports in both the controller’’s and the s records, treasurer’s area of responsibility. treasurer’s q Expresses an opinion to top management regarding the effectiveness of the organizations accounting system. Managerial Accounting By: Prof. Lizardo UNIBE / FIU Managerial Accounting as a Career Cost Management Systems Objectives – Measure the cost of Measure resources consumed. consumed. — Identify and Identify eliminate non-valueeliminate added costs. Cost Management System Managerial Accounting By: Prof. Lizardo UNIBE / FIU Managerial Accounting as a Career Cost Management Systems Objectives – Measure the cost of Measure resources consumed. resources — Identify and eliminate Identify non-value-added costs. costs. ˜ Determine efficiency Determine and effectiveness of major activities. major ™ Identify and evaluate Identify new activities that can improve performance. improve Managerial Accounting By: Prof. Lizardo UNIBE / FIU Managerial Accounting as a Career Theory of Constraints A sequential process of identifying and removing constraints in a system. in Restrictions or barriers that impede progress toward an objective Managerial Accounting By: Prof. Lizardo UNIBE / FIU Managerial Accounting as a Career PROFESSIONAL ORGANIZATIONS Institute of Management Accountants (IMA) Publishes Management Accounting and research studies. Administers Certified Management Accountant program Develops Standards of Ethical Conduct for Management Accountants Managerial Accounting By: Prof. Lizardo UNIBE / FIU Managerial Accounting as a Career PROFESSIONAL ETHICS Ethical • Ethical business practices build trust and promote loyal, productive relationships with customers, employees and suppliers. customers, • Many companies have written codes of ethics which serve as guides for employees to follow. to WHO CAN TELL ME THE 4 MAIN STANDARDS? Managerial Accounting By: Prof. Lizardo UNIBE / FIU Managerial Accounting as a Career Professional Ethical Standards Competence Confidentiality Integrity Credibility Managerial Accounting By: Prof. Lizardo UNIBE / FIU Managerial Accounting as a Career Follow applicable laws, regulations and standards. Maintain professional competence. Competence Competence Prepare complete and clear reports after appropriate analysis. Managerial Accounting By: Prof. Lizardo UNIBE / FIU Managerial Accounting as a Career Do not disclose confidential information unless legally obligated to do so. Do not use confidential information for personal advantage. Confidentiality Confidentiality Inform all relevant parties regarding appropriate use of confidential information. Monitor subordinates’ activities. Managerial Accounting By: Prof. Lizardo UNIBE / FIU Managerial Accounting as a Career Avoid conflicts of interest Avoid and advise others of potential conflicts. Do not subvert organization’’s organization s legitimate objectives. Integrity Recognize and communicate personal and professional limitations. Managerial Accounting By: Prof. Lizardo UNIBE / FIU Managerial Accounting as a Career Avoid activities that could Avoid affect your ability to perform duties. duties. Refrain from Refrain activities that could discredit the profession. profession. Integrity Communicate unfavorable Communicate as well as favorable information. information. Refuse gifts Refuse or favors that might influence behavior. Managerial Accounting By: Prof. Lizardo UNIBE / FIU Managerial Accounting as a Career Communicate information fairly and objectively. Objectivity Disclose all information that might be useful to management. Managerial Accounting By: Prof. Lizardo UNIBE / FIU Managerial Accounting as a Career Resolution of Ethical Conflict –Follow established policies of your organization. —If unresolved or if policy does not exist: Clarify relevant concepts in a confidential discussion with an objective advisor to explore possible courses of action. Discuss problem with immediate supervisor. Managerial Accounting By: Prof. Lizardo UNIBE / FIU Resolution of Ethical Conflict ˜ If immediate supervisor is involved in the unethical behavior, discuss at the next level. ™ If problem is not resolved, the last resort is to resign. š Generally, do not communicate ethical conflicts to outsiders. Thank You! Prof. Lizardo SANTO DOMINGO, D.N. May, 2011 This presentation was prepared for the class of Managerial Accounting of the BBA Program of Universidad Iberoamericana – UNIBE Florida International University ­ FIU ...
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This note was uploaded on 08/10/2011 for the course ECON 123 taught by Professor Other during the Spring '11 term at Pontificia Universidad Catolica Madre y Maestra.

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