Management Accounting
1 - Introduction
1
Texts – Course Materials
• Management and Cost Accounting, 8th Edition
– Colin Drury
• Moodle, PowerPoint Presentations
• Handouts
2
Today’s Topics
• Functions of Management Accounting
• Management Accounting v Financial
Accounting
• Decision making, Planning/Control
process
• Management Accountant in today’s
environment
• Key success factors in customer
satisfaction
• Key Cost terms and concepts
3
Functions of Management
Accountant
• Allocate costs between costs of goods sold
and inventories for internal and external
profit reporting and inventory valuation
• Provide relevant information to help
managers to make better decisions
• Provide information for planning, control
and performance measurement
4
Management v Financial
• Legal requirements for financial
• Management places focus on detail
• GAAP FASB, FRC in UK, IASB,
• Time orientation Financial looks at past, Management
also addresses future outlook.
• Frequency Financial once a year, Management usually
monthly
5
Decision making, Planning and Control
• Planning
– Objectives
– Identify Courses of actions to achieve objectives
– Select as appropriate
– Implement decisions through budget
• Control
– Compare actual and planned
– Respond to correct or amend
6
Management Accountant in today’s
environment
• Globalisation
– open markets/increased competition, Asia mfg, comms
• Growth in service sector
– Public to private , improve efficiencies, deregulation
• Changing product life cycles
– Shorter, time to market, costs at design stage
• Advances in manufacturing and IT
– JIT, quality, Adv Man Tech, e-commerce, internet, ERPs SAP, Oracle
• Need to be customer-driven
• Environment- social responsibility, costs, fines
7
Key success factors in customer
satisfaction-1
• Cost efficiency
– Accuracy
– Competitive advantage
– Trends
– Activities/ Channels
• Quality
– TCM...