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Lecture 1

ACCG301
Organisational Planning and Control
Management Accounting the processes and techniques that focus on the effective and efficient use of
organisational resources to support managers in their tasks of enhancing both customer value and shareholder
value.
A value adding continuous improvement process of planning, designing, measuring and operating both
non-financial information systems and financial information systems that guides management action,
motivates behaviour and supports and creates the culture values necessary to achieve an organisations
strategic, tactical and operating objectives.
Control (performance evaluation), planning (strategic functions)
Intended to meet specific decision-making needs at all levels in organisation
Corporate strategy
Company: Choices about the types of businesses to operate in, which businesses to acquire and divest and
how to best to structure and finance the organisation.
Public Listed Company: Choice is influenced by the expectations of major shareholders and securities
market
Business (or competitive) strategy
The way a business competes within its chosen market
Different strategies for each business unit, to be distinct and operate efficiently
Competitive advantage: advantage that a business may have over another that are difficult to imitate, achieved
though
Cost leadership: economies of production, superior process technologies, tight cost control
Product Differentiation: superior quality, customer service, delivery performance, product features
Contingency Theories
Design of a management accounting system is influenced by specific aspects of the organisational context
E.g. External environment, technology, organisational structure, size, national and organisational culture,
and strategy
Institutional Theories
The design is influenced by institutional forces, which explain similarities
o The need to achieve legitimacy within and beyond their organisation
o The tendency for firms to imitate good practice of other firms
Cost vs. Benefit Analysis: to determine if the project or task is financially feasible or if another project should be
pursued
Value Chain Analysis: R & D Product, Service Process Design Production Marketing Distribution
Customer Service
Ethics: Integrity, Objectivity & Professional Behaviour, Competence and Due Care, Confidentiality

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