Engineering Management Accounting Lecture 1

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Engineering ManagementAccounting Lecture 1
ELE 22EMT
George Alexander G.Alexander_at_latrobe.edu.au HTTP/
/www.latrobe.edu.au/eemanage/
30 July, 2004
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Accounting for Engineers

• WHY?

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Accounting for Engineers - because

• Engineers invariably operate in a managed
  business environment.
• Accounting provides a means of measuring the
  viability and performance of organisations.
• Accounting is closely linked to Engineering
  Economics in that it provides many of the
  analytical tools and data required for analysis.

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Subject Focus
Engineering Management
Accounting
Engineering Economics
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Reference

• Accounting
• Bazley, Hancock, Berry, Jarvis Contemporary
  Accounting, Thomson

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Source of lecture content

• Accounting
• Bazley, Hancock, Berry, Jarvis Contemporary
  Accounting, Thomson
• Previous lecture notes Eric Stokes
• Lecturers own experience
• Note There will be some common ground with the
  Engineering Economics stream.

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Some Financial Debacles

• ENRON
• WORLDCOMM
• HIH
• ONETEL
• represent drastic failures of accounting systems
  and corporate vigilance.

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So what is accounting?

• The process of identifying, measuring and
  communicating economic information to permit
  informed judgement and decisions by users of the
  information.
• Bazley et al

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Financial Accounting

• That part of an accounting system that tries to
  meet the needs of various external users.
• Bazley et al

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Management Accounting

• That part of an accounting system that tries to
  meet the needs of management and internal users.
• Bazley et al

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Topics

• Financial Accounting
• Profit and Loss Statement
• Balance Sheet
• Cash Flows
• Capital assets/depreciation
• Management Accounting
• Budget Process
• Organisation Structure
• Product Cost Calculation
• Business Ratios

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Resources Human Materials Equipment Financial Inf
ormation
managerial Planning Organisation Leading Controll
ing Technology
Outcomes Products services Profit
loss employees growth satisfaction
Inputs
Transformation Process
Outputs
Bartol Management A Pacific Rim Focus,
McGraw-Hill, 2001
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The Firm a simple model
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QANTAS a simple model
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TELSTRA a simple model
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You and me a simple model
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Thanks for your attention