There is a high demand for more sophisticated cost management tools related to

There is a high demand for more sophisticated cost

This preview shows page 3 - 5 out of 5 pages.

development and design stages. There is a high demand for more sophisticated cost management tools related to new product development. Activity-based management is introduced as a system that will allow management to identify and eliminate non-value-added activities in order to reduce life cycle costs.(Slide 12)Total quality management– Continuous improvement and elimination of waste are the two foundational principles that govern a state of manufacturing excellence.A philosophy of total quality managementhas replaced the acceptable quality attitudes of the past.(Slide 13)Time as a competitive element – Time is a crucial element in all phases of the value chain, and world-class firms reduce time to market by compressing design, implementation, and production cycles.Efficiency– Cost is a critical measure of efficiency. Activity-based costing and profit-linked productivity measurement are introduced as methods to evaluate the overall financial effect of productivity changes.(Slide 14)Next we’ll discuss THE ROLE OF THE MANAGEMENT ACCOUNTANTThe cost and management accountant is responsible for collecting, processing, and reporting information that will help managers in their planning, controlling, and decision-making activities. Line positionsare positions that have direct responsibility for the basic objectives of an organization. Staffpositionsare positions that are supportive in nature and have only indirect responsibility for an organization’s basic objectives. (Slide 15)Exhibit 1.1 (p. 10) illustrates an organizational chart for a manufacturing company. Controller and treasurer are staff functions.3
Image of page 3
(Slide 16)The controlleris the chief accounting officer who supervises all accounting departments. The controller is responsible for financial reporting, SEC reporting, tax planning and reporting, performance reporting, internal auditing, budgeting, accounting systems, and internal controls. The treasurer, however,is responsible for the finance function. This includes collection of cash, monitoring cash payments, monitoring cash availability, short-term investing, short and long-term borrowing, and issuing capital stock.Now let’s switch gears again and highlight other areas of cost accounting, Information for Planning, Controlling, Continuous Improvement, and Decision Making(Slide 17)Planningrequires setting objectives and identifying methods to achieve those objectives.
Image of page 4
Image of page 5

You've reached the end of your free preview.

Want to read all 5 pages?

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture