Treasurer the executive who is concerned mainly with

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Treasurer: The executive who is concerned mainly with the company’s financial matters, such as raising and managing cash . Controller: The accounting officer of an organisation who deals mainly with operating matters, such as aiding management decision making.
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Accounting Function : Controller and Treasurer Function
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Objective 6: Current trends in Management accounting Four major business trends that are influencing management accounting today. 1. Shift from manufacturing-based to a service- based economy 2. Increased global competition 3.Advances in technology 4. Changes in business process management
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1. Service Sectors Organisation that do not make or sell tangible goods but instead provide other forms of value. Eg. Public accounting firms, law firms, management consultant, banks, insurance companies, school etc. Labor is a major component of cost . Output is usually difficult to measure. Service organisations cannot store their major inputs and outputs. Services cannot usually be stockpiled. Eg. Hotel’s available labor force and rooms are either used or unused on each day. The accounting systems in service sectors are easy to understand.
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2. Global Competition Electronic commerce: Conducting business online Lowered international barrier to trade and worldwide trend in deregulation increase the economic power in the world. Accounting systems are redesigned in US companies in order to provide more accurate and timely information about the cost of activities, products and services. Improved cost information helps managers better understand and predict the effects of their decisions
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3. Advances in technology Business to Consumer (B2C): Electronic commerce from business to consumer Business to Business (B2B): Electronic commerce from one business to other business Enterprise Resource Planning (ERP) systems. Integrated information systems that support all functional areas of a company. Eg Orcale, SAP, Microsoft Dynamics
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4. Changes in Business process management Computer aided design (CAD): The use of computer technology for the design of real or virtual objects Computer-aided manufacturing (CAM): The use of computer based softwares tools in manufacturing or prototyping. Computer integrated manufacturing (CIM systems: Systems that use computer-aided design, computer aided manufacturing, robots, and computer controlled machines
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4. Changes in Business process management Just-in-time (JIT) philosophy: A philosophy to eliminate waste by reducing the time products spend in the production process and eliminating the time products spend on activities that do not add value. Total Quality Management (TQM): An approach to quality that focuses on prevention of defects and on customer satisfaction Six Sigma: A data driven continuous process improvement effort designed to eliminate defects and improve quality
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Making Managerial Decision Suppose you are a manager of DuPont chemical plant. The plant has just undertaken a business process reengineering project and as a result, has substantially changes its production process. It is much more automated, with newly acquired equipment replacing labor intensive operations.
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