costing

costing

  • Submitted By: MOTSUMI
  • Date Submitted: 04/02/2016 8:38 AM
  • Category: Business
  • Words: 1113
  • Page: 5

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...

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