Current Focus on Management Accounting Briefy Briefy descr describe ibed d below below are are some some o the contem contempor porar ary y trend trends s in manage manageri rial al accounting.
1. Impact Impact on Organ Organizat izational ional Structure Structure The controller controller is responsible responsible or the control control unction o The Vice President President o Finance Finance or the CF !the chie "nancial o#cer$. Ta%e a loo% at the con&ersation o a ather and son during one o their bonding moments in a "ne dining restaurant. 'on( )*ad as the controller controller in the organi+ational organi+ational structure, structure, what normally are your roles in the organi+ation- Are you under the Vice President o Finance. *ad( )/reat )/reat 0uestion. 0uestion. 'imple, as as you %now, 1 am part o the management team. 1 normally e&aluate the alternati&e plans o the team, ormulate assumptions, ma%e orecasts orecasts or estimates and then then gi&e my recommendations recommendations based on on my "ndings. 1 discuss these to the team. 2e do brainstorming in order to come up with the optima optimall resu results lts and "nally "nally prepar prepare e a "nal "nal repor reportt to the Big Big Boss, Boss, the Board Board o dir directo ectors rs,, or or appr appro& o&al al.. 1 can can only only recom ecomme mend nd but but 1 cann cannot ot &ouc &ouch h or or the the achi achie& e&ab abil ilit ity y o my repor eport. t. My repor eport3 t3rrecom ecomme mend ndat atio ions ns are are supp suppor orte ted d with with assu assump mpti tion ons, s, esti estima mate tes s and and or orecas ecasts ts.. Also Also,, as a cont contrrolle ollerr or mana manage geme ment nt accountant, 1 play a &ital role in the planning and control unctions o management. n the control unction side, my department maintains records and reports that are 0ualit 0ualitati ati&el &ely y rele& rele&ant ant.. Finally inally,, we aith aithull ully y repr represe esent nt the "nanci "nancial al condit condition ion,, perormance, perormance, and cash fows o the organi+ation. organi+ation.
2. Focus ocus on Custom Customer er )2hat is the basic purpose o mar%eting- 'atisy customer needs 'atis"ed customers 4 repeat sales and more sales More sales 4 increase in pro"t 3. Cross-F Cross-Funct unctional ional Team Team Team e5ort, cooperation, empowerment, empowerment, and moti&ation moti&ation are &itally important important in any underta%ing. 1n a corporation, all the unctional unctional areas must be wor%ing towards towards one direct direction ion in congr congruen uence ce with with the ultimate ultimate goal o the company company.. All All le&els le&els o management wor% together, doing di5erent 6obs e#ciently and e5ecti&ely while aspiring or one organi+ational goal. 4. Computer Computer-Inte -Integrat grated ed Manufact Manufacturing uring C1M is a world7class manuacturing manuacturing process process that is ully 3 completely completely automated. 1ts main ob6ecti&e ob6ecti&e is eliminat elimination ion o non7&alu non7&alue e added acti&ities acti&ities.. 1t also allows allows aster de&elo de&elopme pment nt o high70 high70ual uality ity produ producti ctions ons,, shorte shorterr prod product uction ion cycle, cycle, reduc reduced ed production costs and aster deli&ery time. The "gure shown below is a fowchart prese presenti nting ng the relat relation ionshi ships ps among among the di5er di5erent ent techno technolog logies ies employ employed ed in a manuacturing process.
Current Focus on Management Accounting
. Time-!ased competition Managers nowadays are &ery particular about the deli&ery cycle time, throughput !manuacturing cycle$ time, and the manuacturing cycle time o their operations. 8#cient and e5ecti&e adherence o these di5erent time7based strategies in the production and operations o an organi+ation will bring competiti&e ad&antages, customer satisaction, high 0uality products and ser&ice, and ultimately pro"t and stability or the company. ". #roduct life c$cle and %i&ersit$ The product lie cycle has "&e stages( product de&elopment, introduction, growth, maturity, and decline. Because o the world7class manuacturing en&ironment, highly7automated manuacturing process, product lie cycle has become shorter. To be competiti&e, managers must %eep abreast o the ast changing technologies in the mar%et place, both domestic and global, through continuous product inno&ation, product de&elopment through research, and product di&ersi"cation in terms o low cost, high &olume products and high cost, small &olume product lines. *o not stic% to one class o product lines. *i&ersity is the name o the game. '. (lo!al competition /lobal business platorm Borderless economy 9:;< A'8A= 1ntegration 2T Multinational corporations businesses around the globe • • • • •
). Information Tec*nolog$ and Communication-Tec*nolog$ Management *oing business online. /etting what you need through the net. >ewlett7Pac%ard in >ilton !9::?$ states that, )The ace o change in technology is becoming much aster and accounting and "nance people are &ery hea&y users o technology more so than a lot o the other unctions +. ,ust in Time In&entor$
Current Focus on Management Accounting A production system that attempts to ac0uire components and produce in&entory only as needed, to minimi+e product deects, and to reduce cycle3setup times or ac0uisition and production. Production is based on appro&ed customers@ sales orders. aw material re0uirements are ordered rom suppliers to be deli&ered directly to the wor%stations and then the "nished products are to be immediately shipped to customers.
1. Total ualit$ Management /TM0 1deally, ecellence is the goal o e&eryone. Companies are strategically aiming or an eample o '1 '1/MA !+ero deects perormance status$, or an 1' certi"cation so that they can satisactorily deli&er products or ser&ices to their customers. 11. Continuous Impro&ement /aizen costing0 The control unction o business operations is not only to saeguard the company@s resources but also to determine the wea%ness o the perormance in order to initiate appropriate correcti&e measures. ne &ery good eample o %ai+en costing is business process reengineering. /o or more. Continuously search or better ways in doing things. COST M(MT S5STM 1ncludes Acti&ity7based costing !ABC$, Acti&ity7based management !ABM$, 'tandard costing, Dean production and E1T in&entory system are some o the recent technologies. Costs as discussed in your Cost Accounting sub6ect are resources sacri"ced. Thus, eliminate losses brought about by non7&alue added acti&ities that are not necessary.
