McGraw-Hill 10-1. 10 McGraw-Hill Systems Analysis & Programming.
© The McGraw-Hill Companies, Inc., 2005 McGraw-Hill /Irwin Brewer/Garrison/Noreen Introduction to...
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Transcript of © The McGraw-Hill Companies, Inc., 2005 McGraw-Hill /Irwin Brewer/Garrison/Noreen Introduction to...
© The McGraw-Hill Companies, Inc., 2005McGraw-Hill /Irwin
Brewer/Garrison/Noreen
Introduction to Managerial Accounting
Second Edition
© The McGraw-Hill Companies, Inc., 2005McGraw-Hill /Irwin
The Changing Business Environment
A more competitive environment emphasizing:
Global competition
Lower prices and costs
Higher quality products
More product choices
Business environment changes in the past
twenty years
© The McGraw-Hill Companies, Inc., 2005McGraw-Hill /Irwin
The Changing Business Environment
Just-In-Time
Total Quality Management
Process Reengineering
Theory of Constraints
New tools for managers!
© The McGraw-Hill Companies, Inc., 2005McGraw-Hill /Irwin
Just-in-Time (JIT) Systems
Receivecustomer
orders.
Scheduleproduction.
Receive materialsjust in time for
production.
Complete partsjust in time for
assembly into products.
Complete productsjust in time to
ship customers.
© The McGraw-Hill Companies, Inc., 2005McGraw-Hill /Irwin
More rapidresponse to
customer orders
More rapidresponse to
customer orders
Less warehousespace needed
Less warehousespace needed
Reducedinventory
costs
Reducedinventory
costs
Greatercustomer
satisfaction
Greatercustomer
satisfaction
Just-in-Time (JIT)
Higher quality products
Higher quality products
Zero defects
Zero defects
© The McGraw-Hill Companies, Inc., 2005McGraw-Hill /Irwin
Do we need to change the plan?
Where are we?
Where do we want to go?
How do we start?
How are we doing?
Check
Plan
Act Dois
Total Quality Management (TQM)
Benchmarking
ContinuousImprovement
© The McGraw-Hill Companies, Inc., 2005McGraw-Hill /Irwin
Process Reengineering
A business processis diagrammed
in detail.
The process isredesigned to include
only those steps that makeour product more valuable.
Every step inthe businessprocess mustbe justified.
© The McGraw-Hill Companies, Inc., 2005McGraw-Hill /Irwin
Process Reengineering
A business processis diagrammed
in detail.
The process isredesigned to include
only those steps that makeour product more valuable.
Every step inthe businessprocess mustbe justified.
Anticipated results: Process is simplified. Process is completed in less time. Costs are reduced. Opportunities for errors are reduced.
© The McGraw-Hill Companies, Inc., 2005McGraw-Hill /Irwin
Theory of Constraints (TOC)
A sequential process of identifying and removing constraints in a system.
Restrictions or barriers that impedeprogress toward an objective
© The McGraw-Hill Companies, Inc., 2005McGraw-Hill /Irwin
International Competition
Meeting world-class competition demands a world-class management accounting
system.
© The McGraw-Hill Companies, Inc., 2005McGraw-Hill /Irwin
Corporate Organization Chart
Purcha sing Personnel V ice PresidentO pera tions
T rea surer C ontro ller
C hief F ina ncia lO fficer
President
B oa rd of D irectors
Organizational Structure
An organization is a group of peopleunited for a common purpose.
An organization is a group of peopleunited for a common purpose.
© The McGraw-Hill Companies, Inc., 2005McGraw-Hill /Irwin
Decentralization
Decentralizatio
n
decision–making
Decentralization
decision–making
Delegation of decision-making authority throughout an organization.
Delegation of decision-making authority throughout an organization.
Corporate Organization Chart
Purcha sing Personnel V ice PresidentO pera tions
T rea surer C ontro ller
C hief F ina ncia lO fficer
President
B oa rd of D irectors
© The McGraw-Hill Companies, Inc., 2005McGraw-Hill /Irwin
Line and Staff Relationships
Line positions are directly related to achievement of the basic objectives of an organization. Example: Production
supervisors in a manufacturing plant.
Staff positions support and assist line positions. Example: Cost
accountants in the manufacturing plant.
© The McGraw-Hill Companies, Inc., 2005McGraw-Hill /Irwin
The Chief Financial Officer (CFO)
The CFO is: A member of top management. Responsible for providing timely and relevant
data for planning and control activities. Responsible for external financial reporting.
The CFO is: A member of top management. Responsible for providing timely and relevant
data for planning and control activities. Responsible for external financial reporting.
© The McGraw-Hill Companies, Inc., 2005McGraw-Hill /Irwin
Professional Ethics
Ethical practices in business build trust and promote productive relationships. They are necessary for the functioning of a market economy.
Many companies and professional organizations, such as the Instituteof Management Accountants (IMA),have written codes of ethics whichserve as guidelines for employees.
© The McGraw-Hill Companies, Inc., 2005McGraw-Hill /Irwin
IMA’s Standard of Ethical Conduct
Competence
Confidentiality
Integrity
Objectivity
Resolution of Ethical Conflict
Competence
Confidentiality
Integrity
Objectivity
Resolution of Ethical Conflict
© The McGraw-Hill Companies, Inc., 2005McGraw-Hill /Irwin
IMA’s Standard of Ethical Conduct
Follow applicable laws, regulations and
standards.
Prepare complete and clear reports after appropriate
analysis.
Maintain professional competence.
Competence
© The McGraw-Hill Companies, Inc., 2005McGraw-Hill /Irwin
IMA’s Standard of Ethical Conduct
Do not disclose confidential information unless legally
obligated to do so.
Ensure that subordinates do not disclose confidential
information.
Do not use confidential
information for personal
advantage.
Confidentiality
© The McGraw-Hill Companies, Inc., 2005McGraw-Hill /Irwin
IMA’s Standard of Ethical Conduct
Integrity
Refrain from activities that
could discredit the profession.
Avoid activities that could affect your ability to perform
duties.
Avoid conflicts of interest and advise others of potential
conflicts.
Refuse gifts or favors that might
influence behavior.
Do not subvert organization’s
legitimate objectives.
Communicate unfavorable as well
as favorable information.
Recognize and communicate personal
and professional limitations.
© The McGraw-Hill Companies, Inc., 2005McGraw-Hill /Irwin
IMA’s Standard of Ethical Conduct
Objectivity
Communicate information fairly and objectively.
Disclose all information that might be useful to
management.
© The McGraw-Hill Companies, Inc., 2005McGraw-Hill /Irwin
Resolution of Ethical Conflict
Follow established policies.
For unresolved ethical conflicts:
Discuss the conflict with immediate superior.
If immediate superior is the CEO, consider the board of directors or the audit committee.
Except where legally prescribed, maintain confidentiality.
Resolution of Ethical Conflict
Follow established policies.
For unresolved ethical conflicts:
Discuss the conflict with immediate superior.
If immediate superior is the CEO, consider the board of directors or the audit committee.
Except where legally prescribed, maintain confidentiality.
IMA’s Standard of Ethical Conduct
© The McGraw-Hill Companies, Inc., 2005McGraw-Hill /Irwin
Resolution of Ethical Conflict Clarify issues in a confidential discussion with
an objective advisor.
Consult an attorney as to legal obligations.
The last resort is to resign.
Resolution of Ethical Conflict Clarify issues in a confidential discussion with
an objective advisor.
Consult an attorney as to legal obligations.
The last resort is to resign.
IMA’s Standard of Ethical Conduct
© The McGraw-Hill Companies, Inc., 2005McGraw-Hill /Irwin
Other Codes of Conduct
CompanyMany companies have adopted formal ethics
codes of conducts that provide broad guidelines for proper behavior.
InternationalThe International Federation of Accountants’ (IFAC) Guidelines on Ethics for Professional
Accountants governs the activities of all accountants throughout the world.
© The McGraw-Hill Companies, Inc., 2005McGraw-Hill /Irwin
Certified Management Accountant (CMA)
Rigorous Professional
Exam
Greater Responsibilities
Higher Compensation