Introduction to Cost and Management Accounting in a Global Business Environment - PowerPoint PPT Presentation

View by Category
About This Presentation
Title:

Introduction to Cost and Management Accounting in a Global Business Environment

Description:

Describe the role of ethics in guiding workforce behavior ... Describe the importance of the value chain. Accounting. The. Language. of. Business. Accounting ... – PowerPoint PPT presentation

Number of Views:841
Avg rating:3.0/5.0
Slides: 35
Provided by: johnh274
Category:

less

Write a Comment
User Comments (0)
Transcript and Presenter's Notes

Title: Introduction to Cost and Management Accounting in a Global Business Environment


1
Cost Accounting Traditions and Innovations Barfiel
d, Raiborn, Kinney
  • Chapter 1
  • Introduction to Cost and Management Accounting in
    a Global Business Environment

2
Learning Objectives (1 of 3)
  • Explain the relationship between financial and
    management accounting
  • Describe the relationships among cost, financial,
    and management accounting
  • Describe the role of ethics in guiding workforce
    behavior
  • Identify the factors that influence the
    globalization of business

3
Learning Objectives (2 of 3)
  • List the primary factors and constraints that
    influence an organizations strategy
  • Explain the impact of the competitive environment
    on an organizations strategy
  • Clarify the impact of the accounting function on
    achievement of strategic goals and objectives

4
Learning Objectives (3 of 3)
  • Explain the effect of the product life cycle on
    the company segments mission
  • Describe the importance of the value chain

5
Accounting
The Language of Business
6
Accounting
  • Provides information to external parties
  • Stockholders, creditors, regulators
  • Estimates the cost of products produced and
    services provided
  • Provides information to internal decision makers
  • To plan, control, and evaluate performance

7
Two Types of Accounting
  • Financial
  • Meet external information needs
  • Comply with GAAP
  • Management
  • Meet internal information needs
  • Provide product costing information

8
Financial Accounting Should
Provide information to stockholders, creditors,
and various regulatory bodies
Comply with GAAP
9
Management Accounting Should
Provide product costing information for external
financial statements
Provide information useful for making
decisions and controlling operations
10
Accounting Differences
  • Financial
  • External
  • Aggregated
  • Historical
  • Quantitative
  • Monetary
  • Verifiable
  • GAAP
  • Managerial
  • Internal
  • Segmented
  • Current/Forecasted
  • Quantitative/Qualitative
  • Monetary/Nonmonetary
  • Timely/Reasonable estimate
  • Benefits exceed costs

11
Relationship of Financial, Management, and Cost
Accounting




FINANCIAL ACCOUNTING
MANAGEMENT ACCOUNTING
COST ACCOUNTING
12
Accounting Standards
  • Financial
  • Financial Accounting Standards Board (FASB)
  • Private-sector body
  • Management
  • Cost Accounting Standards Board (CASB)
  • Public-sector board

13
Accounting Organizations
  • Institute of Management Accountants (IMA)
  • Statements on Management Accounting (not legally
    binding)
  • Certified Management Accountant (CMA)
  • Certified in Financial Management (CFM)
  • Society of Management Accountants of Canada
  • Management Accounting Guidelines (not legally
    binding)

14
Ethics Management Accountants
  • Standards of Ethical Conduct for Management
    Accountants
  • Competence
  • Confidentiality
  • Integrity
  • Objectivity

Competence Confidentiality Integrity Objectivity
15
Global Business Environment
International trade of goods and
services International movement of
labor International flows of capital and
information
16
Global Business Challenges
  • Understand the factors influencing international
    business markets
  • Devise a long-term plan to achieve organizational
    goals
  • Develop information systems that keep the
    companys operations consistent with its plans
    and goals

17
Global Business Environment
  • Electronic Commerce
  • Trade Agreements
  • North American Free Trade Agreement (NAFTA)
  • General Agreement on Tariffs and Trade (GATT)

18
North American Free Trade Agreement (NAFTA)
Members agreed to allow duty-free transfer of
goods under certain conditions
19
General Agreement on Tariffs and Trade (GATT)
To provide a level playing field for trade
among the 100 signatory nations
20
Global Business Environment
  • Risks
  • Strategic
  • Environment and Organization
  • Operating
  • Financial
  • Information

21
Global Business Environment
  • Ethical Considerations
  • Is it legal?
  • Does it comply with our values?
  • How will it look in the newspaper?
  • If you do it, will you feel bad?
  • If its wrong, dont do it.
  • If youre not sure, ask.

22
Mission Statement
Goals and Objectives
Strategic Planning
Tactical Planning
Organizational Strategy
23
Organizational Strategy
  • Organizational Structure
  • Core Competencies
  • Organizational Constraints
  • Organizational Culture
  • Environmental Constraints

24
Organizational Strategy
  • Organizational Structure

Centralization
Decentralization
25
Organizational Strategy
  • Organizational Structure
  • Core Competencies
  • A higher proficiency than the competitors
  • Technological innovation
  • Engineering
  • Product development
  • After-sale service

26
Organizational Strategy
  • Organizational Structure
  • Core Competencies
  • Organizational Constraints
  • Monetary Capital
  • Intellectual Capital
  • Human Capital
  • Structural Capital
  • Relationship Capital

27
Organizational Strategy
  • Organizational Structure
  • Core Competencies
  • Organizational Constraints
  • Organizational Culture
  • An organizations norms
  • internal and external
  • formal and informal

28
Organizational Strategy
  • Organizational Structure
  • Core Competencies
  • Organizational Constraints
  • Organizational Culture
  • Environmental Constraints
  • Limitations on strategy caused by external
    differences in culture, competitive market
    structures, fiscal policy, laws, or political
    situations

29
Business Intelligence System
Formal process for gathering and analyzing
information and producing intelligence to meet
decision-making needs
  • Information about internal processes
  • Knowledge of markets, technologies, and
    competitors

30
Business Intelligence
Competitive Intelligence
Competitor Analysis
Levels of Intelligence Gathering
31
Business Segments
  • Segment Mission relates to Product Life Cycle
  • Build
  • Hold
  • Harvest

32
Accounting Information
  • Strategic Resource Management
  • Planning for deployment of resources to create
    value for customers and shareholders
  • Value ChainFoundation of SRM
  • Set of processes that convert inputs into
    products and services
  • Use accounting information to evaluate the value
    chain to improve strategic resource management

33
The Accountants Role
  • Accountants provide information that is used to
  • make strategic decisions
  • measure and evaluate management
  • provide appropriate incentives
  • provide information about the value chain

34
Questions
  • What is the relationship among cost, financial,
    and management accounting?
  • How do ethics guide workforce behavior?
  • What is the impact of the accounting function on
    achievement of strategic goals and objectives?
About PowerShow.com