Professional Documents
Culture Documents
MANAGEMENT ACCOUNTING
(TOPIC 1: PART 1)
1
Lecture Outline
Management accounting scope
(Case-Discussion)
The evolution of management
accounting (Article-Reading)
Management accounting
change
(Article Reading)
The gap between theory and
BKAM 3033 Topic 1
practice
Management Accounting
Scope
Manage
resources
efficiently
Decision making
Provision of
information
Control
Planning
Direction setting
Change
Commitment
BKAM 3033 Topic 1
Basis
Management accounting
Cost Accounting
Objectives
Scope
Sources of
data
Accounting
principles
Nature
Basis
Management accounting
Financial Accounting
Objectives
Assist managers at all levels i.e. Make periodical report Outsiders like
internal users by providing necessary shareholders, government, customers,
accounting information.
suppliers, managers
Sources of data It uses data, which are subjective, It uses data, which are historical, quantitative
descriptive and related with future.
, and related with past.
Accounting
principles
Reporting
Reports are prepared in certain time Financial reports are generally prepared at
interval according to need of the end of the fiscal year to report
management.
stakeholders.
Legal
compulsion
Performance
measurements
It
in
every
business
Stage
Ongoing
Transformation
4
3
Transformation
Transformation
2
1
Transformation
Source: IFAC, 1998
Stage 1
Stage 2
Stage 3
Stage 4
Focus
8
Management Accounting
Change
Stage 1
(Before 1950)
Stage
2
(19651985)
Cost determination
Financial control
Management planning
and
control
Reduction of waste
Stage
3
(1985
Value creation
Stage
4
1995)
(1995
onwards)
Change in the
Profession
Scorekeepers
Bean counters
Internal consultant
-business partner
-business analyst
BKAM 3033 Topic 1
10
11
The Prior
Business
Environment
Financial
reporting
The
Contemporary
Business
Environment
and cost
Common emphasis
on standardisation &
Std cost
The accountants as
functional expert and
financial scorekeeper
12
Computer-Integrated
Manufacturing
Change
Global Competition
Focus on the Customer
Cross-Functional Teams
Continuous Improvement
Information and
Communication
Technology
Product Life Cycles
Total Quality
Management
Time-Based Competition
Just-in-Time Inventory
13
14
Internal
Organizational
BKAM 3033 Topic 1
15
16
BKAM 3033 Topic
Design of MA systems
Style of management
Existence of TQM programmes
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