Managerial Accounting and the Business Environment

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Managerial Accounting and the Business Environment

• Class One

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Comparison of Financial and Managerial Accounting
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Strategy
A strategyis a game planthat enables a
companyto attract customersby distinguishing
itselffrom competitors.
The focal point of acompanys strategy shouldbe
its target customers.
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Customer Value Propositions
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Work of Management

Planning
Directing and Motivating
Controlling
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Planning
Identifyalternatives.
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Directing and Motivating

• Directing and motivating involves managing
  day-to-day activities to keep the
  organization running smoothly.
• Employee work assignments.
• Routine problem solving.
• Conflict resolution.
• Effective communications.

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Controlling
The control function ensuresthat plans are being
followed.
Feedback in the form of performance reportsthat
compare actual results with the budgetare an
essential part of the control function.
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Planning and Control Cycle
Formulating long-and short-term plans (Planning)
Begin
Comparing actualto planned performance
(Controlling)
Implementing plans (Directing and Motivating)
DecisionMaking
Measuringperformance (Controlling)
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Organizational Structure
Corporate Organization Chart
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Code of Conduct forManagement Accountants

• The Institute of Management Accountants (IMA)
  Standards of Ethical Conduct for Practitionersof
  Management Accounting and Financial Management
  have two major parts offering guidelines for
• ? Ethical behavior.
• ? Resolution for an ethical conflict.

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Ethical Behavior

• Four broad areas of responsibility
• Maintain a high level of professional competence
• Treat sensitive matters with confidentiality
• Maintain personal integrity
• Be objective in all disclosures

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Resolution of an Ethical Conflict

• Follow established policies.
• For unresolved ethical conflicts
• Discuss the conflict with immediate superior.
• Make reference to the Sarbanes-Oxley Act passed
  by Congress in 2002 in part to give legal
  protection to those reporting corporate
  misconduct.
• Consider the board of directors orthe audit
  committee.
• The last resort is to resign.