The Changing Role Of Managerial Accounting In A Dynamic Business Environment

2232 words - 9 pages

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 ...view middle of the document...

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
D. Management of Capacity and Capacity Costs

Evolution and Adaptation in Managerial Accounting

A. E-business

B. Growth of the service sector

C. Global competition

D. Cross-functional teams

E. Product life cycles and diversity
F. Information and communication technology
G. Just-in-time inventory management
H. Total quality management
I. Continuous improvement
J. 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 staff positions, managerial accountants now serve as internal business consultants, trusted advisors, and "business partners."

• Management functions performed within an organization can often be summarized as decision making, planning, the directing of operational activities, and controlling.

➢ Decision making—the process of choosing among available alternatives

➢ Planning—developing a detailed financial and operational description of anticipated operations

➢ Directing operational activities—running the organization on a day-to-day basis

➢ Controlling—ensuring that the organization operates in the intended manner to achieve its goals

2. HOW MANAGERIAL ACCOUNTING ADDS VALUE

Provides managers with information (e.g., product costs, budgets, cash flows). The information includes financial and nonfinancial data to help...

Other Papers Like The Changing Role of Managerial Accounting in a Dynamic Business Environment

The Role Of Accounting On Business And Our Society

1150 words - 5 pages depends on an accountant of some type. Without accountants, the U.S. economy would likely collapse. If I were to create my own business venture, it would be a merchandising company. From an accounting perspective, a service company may seem easier because it requires fewer charts of accounting than a merchandise company (Weygandt, Kimmel, & Keiso, 2013, p.218). In a service company the accounting would require fewer types and number of accounts

Ethics in Managerial Accounting Essay

1258 words - 6 pages Electronics Division, investors of Oaktown Electronics Division, Pat, the purchasing agent successor, the current component supplier, the new component supplier, employees, customers, and possibly the community dependent upon the type of finished good. The initial change will directly affect the company that has been supplying the part by a loss in sales revenues, and the new supplier will gain that business. The initial problems should surface in

The Importance of Accounting in Business

1218 words - 5 pages Renee’ Johnson “The Importance of Accounting in Business” It important to take accounting in business because starting a business often requires entrepreneurs to understand and complete a variety of business functions. An important business function when starting a small business is accounting. In business there are endless stacks of financial documents, and accounting will provide a clearer picture for success in business. Whether you

The Ever Changing Environment Of Organic Valley

384 words - 2 pages Carolina Rodriguez MKGT 3303 Principles of Marketing Spring 2013 Professor Joseph Ben-Ur 2/4/2013 1. Organic Valley has very much so differentiated their products from the normal convention items that you can buy anywhere. Selling an ever expanding line of dairy foods, beverages, milk, cheese’s, yogurts, eggs, fruits, market meats, butter, and vegetables all made in a healthy environment. Owner, Paul Deutsch, saw himself how the

The Role of the Environment in Personality Development of Children

3022 words - 13 pages ; neighborhood and peer groups, including school and mass media—on the personality development of children.   The Role of the Environment in Personality Development of Children Personality can be described as the multiple ways, in its entirety, which a person interrelates with and responds to others and is generally explained as the inherent and comparatively persisting forms of feeling, thought and behavior (Feldman, 2011). It is the totality of one’s

Communicate in a Business Environment

1720 words - 7 pages Communicate in a Business Environment Learning Outcome 1 – Understand the purpose of planning communication 1.1 Explain reasons for knowing the purpose of communication The benefits of knowing the purpose of communication is so that human beings can understand one another, if you do not understand something for example learning something at school the teacher will then have to explain it to you in a simpler way to make it easier, by

The Role of Heresity and Environment in Learning Theory

981 words - 4 pages The Role of Heredity and Environment in Learning Theory ​The role of heredity and environment in the learning theory is one with varying views. Each view relies strongly on the developmental process of children. Urie Bronfenbrenner posits that a child’s environment plays the biggest role in the child’s development and learning experience (Ormrod, 2014). While Jean Piaget and Lev Vygotsky believe that a child’s cognitive development is most

Managerial Roles in Business

650 words - 3 pages Managerial roles in business MGT 521 - Management February 09, 2015 Managerial roles in business Managers are directed to perform their responsibilities and discover through formal training or hands-on experience how to integrate the five basic fundamentals of their job: planning, organizing, staffing, leading, and controlling (Houghton Mifflin Harcourt, 2014). “Business managers oversee the day-to-day operations in large and small

The Role Of Marketing In Business

1178 words - 5 pages The Role of Marketing in Business 1. Mission Statement Analysis Procter & Gamble Co, as known as P&G, is a leading consumer goods company in more than 180 countries with 80 brands. It was founded by William Procter and James Gamble on 0ctober 31, 1837. The original products of P&G are candles and soaps, but now, P&G has various kinds of products, including pet foods, cleaning agents, personal care products, as well as food and beverage

Role of Accounting on Business Behavior Impacted by Tax Changes in Malaysia

1858 words - 8 pages understanding changes in accounting role due to tax, become important because of several reasons. Firstly, as the globalization of the economy develops further, tax becomes an option that can be compared between one country and another. Business owner will be attracted to invest money more in a country that has less tax burden which result in higher percentage of money that can be kept by the business owners. This shows that tax has influence

Ethics in the Business Environment

1307 words - 6 pages not knowingly try to evade following rules and regulations of any country while representing The Rub and Grub Corporation. Bribery Under no uncertain terms will an employee or representative of The Rub and Grub Company accept or offer any form of bribe in exchange for services or goods. Bribery also includes a gift, promise or monetary exchange in order to gain advantage or retain business relations (Bolte, n.d.). If any bribery activities

Related Essays

Participating In The Dynamic Business Environment

1407 words - 6 pages Participating in the Dynamic Business Environment Transamerica Ltd. Transamerica is a global organisation incorporated in the AEGON Corporation. Transamerica covers reinsurance market in USA, Asia and pacific, Europe and South America. Transamerica has seen a steady growth on its European markets and has been afloat in the US and South American markets. The prospect of growth looks promising in Hong Kong, Taiwan and newly opened office in

The Role Of Project Management In Today's Business Environment

833 words - 4 pages The Role of Project Management in Today's Business Environment Introduction Project management has evolved from its humble beginnings into something that is apparent and crucial in today's business environment. Quality, cost control and delivery are taking precedence in business, government and non profit sectors. Project management gives managers extra boost in planning, creating and executing strategic initiatives that will result in

Bp's Marketing Strategy In Changing Business Environment

4953 words - 20 pages had to adequately react to the environmental changes and adjust their marketing strategy (Bamberg, 2009:49). 3. BP in Dynamic and Changing Environment Taking into account that this report analyses strategic positioning of BP as a response to environmental changes and influences, the external environment of the company should be carefully scanned. It is important to note that not only contemporary external influences ought to be investigated

The Role Of Accounting On Business And Our Society

800 words - 4 pages . C., Sorensen, J. E., & Stout, D. E. (2014). The Future of Accounting Education: Addressing the Competency Crisis. Strategic Finance, 96(8), 29-37. Hartstein, B. D. (2013). Certified Public Accountants as Future "Trusted Business Advisors"--And How to Engage Them. Journal of Financial Service Professionals, 67(6), 35-39. HOPWOOD, A. G. (1972). An Empirical Study of the Role of Accounting Data in Performance Evaluation. Journal of Accounting Research, 10(3), 156-182.