The Changing Role of Managerial Accounting in a Dynamic Business Environment

Topics: Management accounting, Management, Certified Management Accountant Pages: 11 (1730 words) Published: April 2, 2013
CHAPTER 1

THE CHANGING ROLE OF MANAGERIAL
ACCOUNTING IN A DYNAMIC BUSINESS ENVIRONMENT

Learning Objectives

1.Define managerial accounting and describe its role in the management process.

2.Explain four fundamental management processes that help organizations attain their goals.

3.List and describe five objectives of managerial accounting activity.

4.Explain the major differences between managerial and financial accounting.

5.Explain where managerial accountants are located in an organization, in terms of formal organization, deployment in cross-functional teams, and physical location.

6.Describe the roles of an organization's chief financial officer (CFO) or controller, treasurer, and internal auditor.

7.Briefly describe some of the major contemporary themes in managerial accounting.

8.Understand and explain the concepts of strategic cost management and the value chain.

9.Understand the ethical responsibilities of a managerial accountant.

10.Discuss the professional organizations, certification process, and ethical standards in the field of managerial accounting. Chapter Overview

I.The Management Process in Organizations
A.What is managerial accounting?
B.Management activities
1.Decision making
2.Planning
3.Directing operational activities
4.Controlling

II.How Managerial Accounting Adds Value to the Organization A.Provides information for decision making and planning B.Assists in directing and controlling
C.Motivates managers and employees
D.Measures performance
E.Assesses an organization's competitive position
F. Balanced Scorecard

III.Managerial Versus Financial Accounting
A.Focus of reports
B.External vs. internal users of information
C.Degree of regulation
D.Information focus

IV.Role of the Managerial Accountant
A.Line and staff positions
B.Management accountants
1.Chief financial officer (CFO) or controller
2.Treasurer
3.Internal auditor

C.Cross-functional deployment

D.Location within the organization

V.Major Themes of Managerial Accounting
A.Information and incentives
B.Behavioral issues
C.Costs and benefits

Evolution of Managerial Accounting

A.E-business

B.Growth of the service sector

C.Emergence of new industries
D.Global competition
E.Focus on the customer

F.Cross-functional teams

G.Product life cycles and diversity
H.Time-based competition
I.Information and communication technology
J. Just-in-time inventory management
K. Total quality management
L. Continuous improvement
M. Cost management systems

VII.Strategic Cost Management and the Value Chain

VIII. Business, Ethics, and the Accountant
A. Nature and causes of corporate scandals
B. Corporate and accounting reform

IX.Managerial Accounting as a Career
A.Professional certification
B.Professional ethics
1.Competence
2.Confidentiality
3.Integrity
4.Credibility

Key Lecture Concepts

1.ORGANIZATIONS

Types of organizations include manufacturers, retailers, service providers, agribusinesses, and nonprofit firms. These organizations have goals—for example: growth, profit, quality, leadership, etc.

Organizations have information needs in the financial, production, personnel, environmental, and legal areas. Managerial accounting provides some of this information. Managerial accounting is the process of identifying, measuring, analyzing, interpreting, and communicating information in pursuit of an organization's goals. The role of managerial accountants has expanded in recent years. Formerly in...
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