Kế toán, kiểm toán - Chapter 1: Management accounting: information for managing resources and creating value

Chapter 1Management accounting: information for managing resources and creating value1Australian organisations in the 21st centuryIncreasing global competition in the 1990sReduction/elimination of input tariffs, quotas and bountiesDeregulation of telecommunications industriesCorporatisation and privatisation of public sectorcontinued2Copyright  2003 McGraw-Hill Australia Pty Ltd, PPTs t/a Management Accounting: An Australian Perspective 3/e by Langfield-Smith, Thorne & HiltonSlides prepared by Kim Langfield-SmithAustralian organisations in the 21st centuryShift from primary production, to resources to service-based economyIncreasing customer demandsRise of the internet and e-commerceNew organisational structures, strategies and management philosophies3Copyright  2003 McGraw-Hill Australia Pty Ltd, PPTs t/a Management Accounting: An Australian Perspective 3/e by Langfield-Smith, Thorne & HiltonSlides prepared by Kim Langfield-SmithWhat is management accounting?the processes and techniques that focus on the effective use of organisational resources, to support manager in their tasks of enhancing both customer value and shareholder value4Copyright  2003 McGraw-Hill Australia Pty Ltd, PPTs t/a Management Accounting: An Australian Perspective 3/e by Langfield-Smith, Thorne & HiltonSlides prepared by Kim Langfield-SmithWhat is management accounting?Customer valueThe value that a customer places on particular features of a product or serviceShareholder valueThe value that shareholders or owners place on a businessResourcesFinancial and non-financial, including information, work processes, employees, committed customers and suppliers5Copyright  2003 McGraw-Hill Australia Pty Ltd, PPTs t/a Management Accounting: An Australian Perspective 3/e by Langfield-Smith, Thorne & HiltonSlides prepared by Kim Langfield-SmithManagement accounting systemsAn information system that produces the information required by managers to manage resources and create valueIncludes regular estimates of the cost of goods and services, information for planning and controlling operations, and information for measuring performanceAd-hoc information to satisfy managers’ short-term and long-term decision-making needs6Copyright  2003 McGraw-Hill Australia Pty Ltd, PPTs t/a Management Accounting: An Australian Perspective 3/e by Langfield-Smith, Thorne & HiltonSlides prepared by Kim Langfield-SmithManagement accounting informationFocus is on the needs of managers within the organisationGreat flexibility in the nature of information suppliedInfluenced byProduction and service technologies, organisational structure, organisational size, level of sophistication of computer systemsRelevant to senior managers through to operational managers7Copyright  2003 McGraw-Hill Australia Pty Ltd, PPTs t/a Management Accounting: An Australian Perspective 3/e by Langfield-Smith, Thorne & HiltonSlides prepared by Kim Langfield-SmithManagement accounting vs. financial accountingFinancial accountingThe practice of preparing and reporting accounting information for parties outside the organisationCosting systems are common to both financial and management accountingA system that estimates the cost of goods and services as well as the cost of organisational units, such as departments8Copyright  2003 McGraw-Hill Australia Pty Ltd, PPTs t/a Management Accounting: An Australian Perspective 3/e by Langfield-Smith, Thorne & HiltonSlides prepared by Kim Langfield-SmithManagement accounting vs. financial accounting9Copyright  2003 McGraw-Hill Australia Pty Ltd, PPTs t/a Management Accounting: An Australian Perspective 3/e by Langfield-Smith, Thorne & HiltonSlides prepared by Kim Langfield-SmithManagement accounting within organisationsMost large organisations have a ‘finance function’ at the corporate levelSenior accountantsFinancial controllers, chief accountants, finance managers, GM of accounting, group accountantAccounting staff may be found in each operating division‘Management accounting’ increasingly involves managers in other areas of the business10Copyright  2003 McGraw-Hill Australia Pty Ltd, PPTs t/a Management Accounting: An Australian Perspective 3/e by Langfield-Smith, Thorne & HiltonSlides prepared by Kim Langfield-SmithProcesses and techniques of management accountingSystems that support the organisation’s formulation and implementation of strategyInformation to help managers manage their resources, through systems of planning and control11Copyright  2003 McGraw-Hill Australia Pty Ltd, PPTs t/a Management Accounting: An Australian Perspective 3/e by Langfield-Smith, Thorne & HiltonSlides prepared by Kim Langfield-SmithProcesses and techniques of management accountingEstimates of the costs of an organisation's outputs, to support the strategic and operational decision making needs of managersContributes to activities that seek to improve the organisation’s competitive advantage12Copyright  2003 McGraw-Hill Australia Pty Ltd, PPTs t/a Management Accounting: An Australian Perspective 3/e by Langfield-Smith, Thorne & HiltonSlides prepared by Kim Langfield-SmithManagement accounting and strategyManagement accounting can support the organisation's formulation and implementation of strategyMission statementDefines the purpose and boundaries of the organisationVisionThe desired future state or aspiration of an organisationUse by senior managers to focus the attention and energies of staff13Copyright  2003 McGraw-Hill Australia Pty Ltd, PPTs t/a Management Accounting: An Australian Perspective 3/e by Langfield-Smith, Thorne & HiltonSlides prepared by Kim Langfield-SmithManagement accounting and strategyObjectivesSpecific statement of what the organisation aims to achieve, often quantified and relating to a specific period of timeStrategiesThe direction that the organisation intends to take over the long term, to meet its mission and achieve its objectivesWays to manage the organisation's resources to create value for customers and shareholders14Copyright  2003 McGraw-Hill Australia Pty Ltd, PPTs t/a Management Accounting: An Australian Perspective 3/e by Langfield-Smith, Thorne & HiltonSlides prepared by Kim Langfield-SmithManagement accounting and strategyMajor decisionsWhat business will we operate in?How should we compete in that business?What systems and structures should we have in place to support our strategies?Corporate strategy Decisions about the types of businesses to operate in, which businesses to acquire and divest, and how best to structure and finance the organisation15Copyright  2003 McGraw-Hill Australia Pty Ltd, PPTs t/a Management Accounting: An Australian Perspective 3/e by Langfield-Smith, Thorne & HiltonSlides prepared by Kim Langfield-SmithManagement accounting and strategyBusiness (or competitive) strategyThe way a business competes within its chosen marketStrategy implementationPutting plans into place to implement and support business strategies16Copyright  2003 McGraw-Hill Australia Pty Ltd, PPTs t/a Management Accounting: An Australian Perspective 3/e by Langfield-Smith, Thorne & HiltonSlides prepared by Kim Langfield-SmithManagement accounting and strategyCompetitive advantageCost leadershipProduct differentiationManagement accounting systems should provide information to support the formulation and implementation of an organisation's strategies17Copyright  2003 McGraw-Hill Australia Pty Ltd, PPTs t/a Management Accounting: An Australian Perspective 3/e by Langfield-Smith, Thorne & HiltonSlides prepared by Kim Langfield-SmithPlanningA broad concept that is concerned with formulating the direction for future operationsAllows an organisation to consider and specify all resources needed in the futureOccurs at all levels of the organisationA budget is an example of a short-term plan18Copyright  2003 McGraw-Hill Australia Pty Ltd, PPTs t/a Management Accounting: An Australian Perspective 3/e by Langfield-Smith, Thorne & HiltonSlides prepared by Kim Langfield-SmithControllingInvolves putting mechanisms in place to ensure that operations proceed according to plan, and objectives are achievedManagement accounting information provides information for control by comparing actual performance against plans, targets or budgetsControl systems are the systems and procedures that provide regular information to assist in control19Copyright  2003 McGraw-Hill Australia Pty Ltd, PPTs t/a Management Accounting: An Australian Perspective 3/e by Langfield-Smith, Thorne & HiltonSlides prepared by Kim Langfield-SmithPlanning and control20Copyright  2003 McGraw-Hill Australia Pty Ltd, PPTs t/a Management Accounting: An Australian Perspective 3/e by Langfield-Smith, Thorne & HiltonSlides prepared by Kim Langfield-SmithCosting goods and servicesEstimates of the cost of producing goods and services are needed to support a range of operational and strategic decisionsRoutine costing systems form part of the financial accounting systemProduct costs are produced outside of the financial accounting systems, to better meet managers’ decision making needs 21Copyright  2003 McGraw-Hill Australia Pty Ltd, PPTs t/a Management Accounting: An Australian Perspective 3/e by Langfield-Smith, Thorne & HiltonSlides prepared by Kim Langfield-SmithContributing to competitive advantageManagement accounting may contribute to activities that seek to improve the organisation's performance in terms of quality, delivery, time flexibility, innovation and costThrough modern process improvement and cost management techniquesPerformance measures that focus on specific business strategies22Copyright  2003 McGraw-Hill Australia Pty Ltd, PPTs t/a Management Accounting: An Australian Perspective 3/e by Langfield-Smith, Thorne & HiltonSlides prepared by Kim Langfield-SmithImportant considerationsBehavioural issuesAn awareness of the expected and unexpected outcomes of management accounting systemsA key purpose of management accounting systems is to motivate managers and employees to direct their efforts towards achieving the organisation’s goalsAn important motivational tool is the use of performance measures that reflect organisational objectives, and reward systems continued23Copyright  2003 McGraw-Hill Australia Pty Ltd, PPTs t/a Management Accounting: An Australian Perspective 3/e by Langfield-Smith, Thorne & HiltonSlides prepared by Kim Langfield-SmithImportant considerationsThe tradeoff between the cost and benefits of management accounting informationCosts Salary of accounting personnel Cost of purchasing and operating computersCost of gathering, storing and processing data, andCost of managers’ time to read, understand and use the informationcontinued24Copyright  2003 McGraw-Hill Australia Pty Ltd, PPTs t/a Management Accounting: An Australian Perspective 3/e by Langfield-Smith, Thorne & HiltonSlides prepared by Kim Langfield-SmithImportant considerationBenefits Improved decisionsMore effective planningGreater operational efficiencyBetter control, and Improved customer and shareholder value25Copyright  2003 McGraw-Hill Australia Pty Ltd, PPTs t/a Management Accounting: An Australian Perspective 3/e by Langfield-Smith, Thorne & HiltonSlides prepared by Kim Langfield-SmithManagement accounting responses to the environmentConventional management accounting systemsIncludes budgeting, costing systems and financial performance measurement systemsIn wide use for many decades, and still be used in many organisationscontinued26Copyright  2003 McGraw-Hill Australia Pty Ltd, PPTs t/a Management Accounting: An Australian Perspective 3/e by Langfield-Smith, Thorne & HiltonSlides prepared by Kim Langfield-SmithManagement accounting responses to the environmentContemporary management accounting systemsIncludes activity-based costing, performance measurement systems such as balanced scorecards, cost management systems, such as business process reengineering, new approaches to customer profitability analysis and supplier cost analysiscontinued27Copyright  2003 McGraw-Hill Australia Pty Ltd, PPTs t/a Management Accounting: An Australian Perspective 3/e by Langfield-Smith, Thorne & HiltonSlides prepared by Kim Langfield-SmithManagement accounting responses to the environmentContemporary management accounting techniques have been developed over recent years, and support the adoption of new structures, systems and practicesSome organisations continue to use conventional management accounting systems, while others are in the midst of implementing contemporary systems 28Copyright  2003 McGraw-Hill Australia Pty Ltd, PPTs t/a Management Accounting: An Australian Perspective 3/e by Langfield-Smith, Thorne & HiltonSlides prepared by Kim Langfield-SmithKey influences on management accounting systems29Copyright  2003 McGraw-Hill Australia Pty Ltd, PPTs t/a Management Accounting: An Australian Perspective 3/e by Langfield-Smith, Thorne & HiltonSlides prepared by Kim Langfield-Smith