Notes Chapter 1

Notes Chapter 1 - Notes Chapter 1: The Role of Management...

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Notes Chapter 1: The Role of Management Accounting I. Globalization a. Globalization : bringing together all different nations to share in international trading of supplies, information, and ideas II. Strategy a. Strategy : a “game plan” that enables a company to attract customers by distinguishing itself from competitors. a.i. Customer Value Propositions: a.i.1. Customer Intimacy : “The reason that you should choose us is because we understand and respond to your individual needs better than our competitors.” (ex. Ritz-Carlton, Nordstrom, Starbucks) a.i.2. Operational Excellence : “the reason that you should choose us is because we can deliver products and services faster, more conveniently, and at lower prices than our competitors.” (ex. Southwest, Wal-Mart) a.i.3. Product Leadership : The reason that you should choose us is because we offer higher quality products than our competitors.” (ex. BMW) III. The Work of Management and the Need for Managerial Accounting Information a. Planning - establishing a basic strategy, selecting a course of action, and specifying how the action will be implemented. a.i. top management looks at the sales volumes, profit margins, and costs of the company’s established stores in similar markets. They find the best alternative. a.ii. Budgets: the controller, or manager in charge of the accounting department, annually prepares and presents management’s plans in specific, quantitative terms. b. Directing and motivating - mobilizing people to carry out plans and run routine operations (The here and now) b.i. Managers assign tasks to employees, arbitrate disputes, answer questions, solve on-the-spot problems, and make many small decisions that affect customers and employees. c.
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Notes Chapter 1 - Notes Chapter 1: The Role of Management...

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