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Accounting

Information System

Mrs Beng’i Issa


CPA(T), Msc. Fin. Mgt
Definition
Management accounting measures,
analyzes and reports financial and non-
financial information that helps managers
make decisions to fulfill the goals of an
organizations.
Managers use management accounting
information to choose, communicate and
implement strategy, coordinate product
design, production and marketing
decisions.
Focuses on internal reporting
Roles of mgt. accountant
Forecasting and planning,
Variance analysis,
Monitoring costs
Preparation of certain financial reports,
reconciliations of the financial data to source
systems,
value creation,
Ensure success of the business.
Management Financial
accounting accounting
Rules of Internal measures and Financial
measureme reports do not have to statements must
nt and follow international be prepared in
reporting standards but are accordance with
based on cost benefit International
analysis Standards and be
certified by the
external,
independent
auditors
Management Financial
accounting accounting
Time span and Varies from hourly Annual and
type of report information to 15 quarterly financial
to 20 years with reports, primarily
financial and non on the company as
financial reports a whole
Behavioral Designed to Primarily reports
implications influence the economic events
behavior of but also influences
managers and behavior because
other employees manager’s
compensation is
often based on
reported financial
results.
Designing Accounting
Information System
Planning
Analysis
Design
Implementation and
Support
Planning
Analysis
Design
Impleme
ntation
Support
Management accounting and
the business environment
Characterized by increasing competition
and a relentless drive for continuous
improvement.
Several approaches have been developed
to assist organizations in meeting these
challenges-including:
just-in-time (JIT),
total quality management (TQM),
process reengineering, and
the theory of constraints (TOC).
JIT
Emphasizes the importance of
reducing inventories to the barest
minimum possible.
This reduces working capital
requirements,
Frees up space,
Reduces throughput time,
Reduces defects, and
Eliminates waste.
TQM
involves focusing on the customer, and
it employs systematic problem solving
using teams made up of front-line
workers.
Specific TQM tools include benchmarking
and the plan-do-check-act (PDCA) cycle.
By emphasizing teamwork,
TQM can avoid the organizational
infighting that might otherwise block
improvement.
The theory of constraints
It emphasizes the importance of
managing the organization's
constraints.
Since the constraint is whatever is
holding back the organization,
improvement efforts usually must be
focused on the constraint in order to
be really effective.
Process Reengineering
involves completely redesigning a
business process in order to eliminate
non-value-added activities and
to reduce opportunities for errors.
Process Reengineering relies more on
outside specialists than TQM and
is more likely to be imposed by top
management.
Organizational Chart
It depicts who works for whom in the
organization and which units perform
staff functions rather than line
functions.
Ethical standards
Serve a very important practical function in an
advanced market economy.
Without widespread adherence to ethical
standards, the economy would slow down
dramatically.
Ethics are the lubrication that keep a market
economy functioning smoothly.
The Standards of Ethical Conduct for
Practitioners of Management Accounting and
Financial Management provide sound, practical
guidelines for resolving ethical problems that
might arise in an organization.
Ethical standards
Ethics build trust promote loyal and
productive relationships.
There are code of ethics for
management accountants
Code of ethics

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