Chapter 1 introduction to cost accounting

26 5 0
  • Loading ...
1/26 trang

Thông tin tài liệu

Ngày đăng: 30/11/2016, 22:08

Chapter 1: Introduction to Cost Accounting Cost Accounting: Foundations and Evolutions, 8e Kinney ● Raiborn © 2011 Cengage Learning All Rights Reserved May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use Learning Objectives What are the relationships among financial, management, and cost accounting?  What are the the sources of authoritative pronouncements for the practice of cost accounting?  What are the sources of ethical standards for cost accountants?  What is a mission statement, and why is it important to organizational strategy?  What must accountants understand about an organization’s structure and business environment in order to perform effectively in that organization?  What is a value chain, and what are the major value chain functions?  How is a balanced scorecard used to implement an organization’s strategy? © Reserved May not be copied, scanned,  2011 WhyCengage is ethicalLearning behaviorAllsoRights important in organizations?  or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a passwordprotected website for classroom use Accountants  Financial accountants provide information to external parties     Managerial accountants provide information to internal users   Investors Creditors Regulators Managers Cost accountants provide information to both internal and external users  Product cost information © 2011 Cengage Learning All Rights Reserved May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a passwordprotected website for classroom use Accounting is the language of business Relationship of Financial, Management, and Cost Accounting Product Costs FINANCIAL COST MANAGEMENT ACCOUNTING ACCOUNTING ACCOUNTING © 2011 Cengage Learning All Rights Reserved May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a passwordprotected website for classroom use Types of Accounting Financial   Meet external information needs Comply with GAAP Management   Meet internal information needs Does not have to comply with GAAP © 2011 Cengage Learning All Rights Reserved May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a passwordprotected website for classroom use Financial versus Managerial Financial         External focus Whole organization Historical Quantitative Monetary Verifiable GAAP Formal recordkeeping Managerial         Internal focus Segments or divisions Current/projected Quantitative/qualitative Monetary and nonmonetary Timely/reasonable estimate Benefits exceed costs Formal and informal recordkeeping © 2011 Cengage Learning All Rights Reserved May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a passwordprotected website for classroom use Product Cost Information  External parties—stockholders, creditors, and regulators     For investment and credit decisions Complies with GAAP Enterprise focus Internal parties Planning, controlling, and decision making  Evaluating performance  Includes upstream and downstream costs © 2011 Cengage Learning All Rights Reserved May not be copied, scanned,  Disaggregated or duplicated, in whole or in part, except for use as permitted in a license  distributed with a certain product or service or otherwise on a passwordprotected website for classroom use Accounting Bodies Financial Management  Public Company  Institute of Accounting Oversight Management Board (PCAOB) Accountants (IMA)  Securities and  Society of Management Exchange Commission Accountants of Canada (SEC)  Cost Accounting  Financial Accounting Standards Board Standards Board (CASB) (FASB) © 2011 Cengage Learning All Rights Reserved May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a passwordprotected website for classroom use Management Accounting Organizations  IMA    Society of Management Accountants of Canada    Statements on Management Accounting (not legally binding) Management Accounting Guidelines (not legally binding) Cost Accounting Standards Board (CASB) Government contracting standards  (legally © 2011 Cengagebinding) Learning All Rights Reserved May not be copied, scanned,  or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a passwordprotected website for classroom use Professional Ethics   Earnings management—deliberate accounting adjustments to “hit” profit targets Often adjustments involve cost accounting     Product costs Inventory valuations Stretching legitimate accounting techniques Outright fraud © 2011 Cengage Learning All Rights Reserved May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a passwordprotected website for classroom use Ethics and Management Accounting  Standards of Ethical Conduct for Management Accountants     Competence Confidentiality Integrity Credibility © 2011 Cengage Learning All Rights Reserved May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a passwordprotected website for classroom use Organizational Strategy Develop mission statement Implement strategy Deploy resources to create value for customers and shareholders Recognize that each organization is unique —thus unique strategies must be developed © 2011 Cengage Learning All Rights Reserved May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a passwordprotected website for classroom use Organizational Strategy Develop mission statement Implement strategy Develop, implement, and Establish monitor appropriate necessary measures of information accomplishment © 2011 Cengage Learning All Rights Reserved systems May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a passwordprotected website for classroom use Five Factors in Organizational Strategy      Core competencies Organizational structure Management style and organizational culture Organizational constraints Environmental constraints © 2011 Cengage Learning All Rights Reserved May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a passwordprotected website for classroom use Organizational Strategies    Core competency—critical function or activity providing a competitive advantage Cost leadership strategy—undercut competitor prices Product differentiation strategy—superior quality products or unique services sold at a premium © 2011 Cengage Learning All Rights Reserved May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a passwordprotected website for classroom use Strategy Questions    Who are your five most important competitors? Is your firm more or less profitable than these firms? Compare prices for equivalent products/services  Are they higher or lower? Explain the difference Is it customers, costs, or profit requirements?     What are your customers’ most important purchase criteria? How you and your competitors rate on these purchase criteria? What are your main strengths and competencies? Are they appreciated by the market? Which are your priority segments? Where is it most important that you gain market share? What is your competitive advantage? Are your costs higher or lower than  those of main competitors? Where  are the differences most pronounced?  What segment(s) of your business represents 80% profits?  For each business segment above, how large are you relative to the © 2011 Cengage Learning All Rights largest competitors? Are you gainingReserved May not be copied, scanned, losing relative market or or duplicated, in whole or inshare? part, except for use as permitted in a license distributed with a certain product or service or otherwise on a passwordprotected website for classroom use  Organizational Structure Distribution of authority and responsibility in an organization  Authority—right to use resources to accomplish a task or achieve an objective  Responsibility—obligation to accomplish a task or achieve an objective  Line manager works directly toward attaining organizational goals  Staff employees give assistance and advice to line managers © 2011 Cengage Learning All Rights Reserved May not be copied, scanned,  Treasurer and Controller or duplicated, in whole or in part, except for use as permitted in a license  distributed with a certain product or service or otherwise on a passwordprotected website for classroom use Value Chain      A set of value-adding functions and processes that converts inputs into products or services Research and Development Product Design Supply Production    Marketing Distribution Customer Service © 2011 Cengage Learning All Rights Reserved May not be copied, scanned, Communicate strategy to all members of the value chain or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a passwordprotected website for classroom use Components of the Value Chain © 2011 Cengage Learning All Rights Reserved May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a passwordprotected website for classroom use Balanced Scorecard © 2011 Cengage Learning All Rights Reserved May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a passwordprotected website for classroom use Balanced Scorecard Perspectives  Learning and Growth   Internal Business   Things to well to meet customer needs and expectations Customer Value   Use the organization’s intellectual capital to adapt to changing customer needs or to influence new customers’ needs and expectations through product or service innovations How well the organization is doing relative to important customer criteria Financial  Address stockholders/stakeholders concerns about profitability and organizational growth © 2011 Cengage Learning All Rights Reserved May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a passwordprotected website for classroom use Balanced Scorecard Measures    Short-term and long-term Internal and external Financial and nonfinancial © 2011 Cengage Learning All Rights Reserved May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a passwordprotected website for classroom use Ethics in Multinationals   Foreign Corrupt Practices Act—prohibits bribes to obtain/retain business Organization of Economic Cooperation and Development Convention—crime to offer, promise, give bribes to obtain/retain internal business deals © 2011 Cengage Learning All Rights Reserved May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a passwordprotected website for classroom use Questions    What is the relationship among financial, management, and cost accounting? How is the balanced scorecard used to implement an organization’s strategy? Where can an accountant find ethical standards for cost accounting? © 2011 Cengage Learning All Rights Reserved May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a passwordprotected website for classroom use Potential Ethical Issues       Earnings management Low-cost production at any cost Whistle-blower retaliation Fixing prices Bribery and other corruption Hiding managerial acts © 2011 Cengage Learning All Rights Reserved May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a passwordprotected website for classroom use [...]...  Internal Business   Things to do well to meet customer needs and expectations Customer Value   Use the organization’s intellectual capital to adapt to changing customer needs or to influence new customers’ needs and expectations through product or service innovations How well the organization is doing relative to important customer criteria Financial  Address stockholders/stakeholders concerns... authority and responsibility in an organization  Authority—right to use resources to accomplish a task or achieve an objective  Responsibility—obligation to accomplish a task or achieve an objective  Line manager works directly toward attaining organizational goals  Staff employees give assistance and advice to line managers © 2 011 Cengage Learning All Rights Reserved May not be copied, scanned,... passwordprotected website for classroom use Questions    What is the relationship among financial, management, and cost accounting? How is the balanced scorecard used to implement an organization’s strategy? Where can an accountant find ethical standards for cost accounting? © 2 011 Cengage Learning All Rights Reserved May not be copied, scanned, or duplicated, in whole or in part, except for use... gain market share? What is your competitive advantage? Are your costs higher or lower than  those of main competitors? Where  are the differences most pronounced?  What segment(s) of your business represents 80% profits?  For each business segment above, how large are you relative to the © 2 011 Cengage Learning All Rights largest competitors? Are you gainingReserved May not be copied, scanned, losing... Value Chain      A set of value-adding functions and processes that converts inputs into products or services Research and Development Product Design Supply Production    Marketing Distribution Customer Service © 2 011 Cengage Learning All Rights Reserved May not be copied, scanned, Communicate strategy to all members of the value chain or duplicated, in whole or in part, except for use as permitted... Credibility © 2 011 Cengage Learning All Rights Reserved May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a passwordprotected website for classroom use Organizational Strategy 1 2 3 4 Develop mission statement Implement strategy Deploy resources to create value for customers and shareholders... passwordprotected website for classroom use Ethics in Multinationals   Foreign Corrupt Practices Act—prohibits bribes to obtain/retain business Organization of Economic Cooperation and Development Convention—crime to offer, promise, give bribes to obtain/retain internal business deals © 2 011 Cengage Learning All Rights Reserved May not be copied, scanned, or duplicated, in whole or in part, except for... Questions    Who are your five most important competitors? Is your firm more or less profitable than these firms? Compare prices for equivalent products/services  Are they higher or lower? Explain the difference Is it customers, costs, or profit requirements?     What are your customers’ most important purchase criteria? How do you and your competitors rate on these purchase criteria? What are your... protection and penalties for failure to blow the whistle (disclose known financial frauds) © 2 011 Cengage Learning All Rights Reserved May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a passwordprotected website for classroom use Ethics and Management Accounting  Standards of Ethical... organizational growth © 2 011 Cengage Learning All Rights Reserved May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a passwordprotected website for classroom use Balanced Scorecard Measures    Short-term and long-term Internal and external Financial and nonfinancial © 2 011 Cengage Learning
- Xem thêm -

Xem thêm: Chapter 1 introduction to cost accounting , Chapter 1 introduction to cost accounting , Chapter 1 introduction to cost accounting

Gợi ý tài liệu liên quan cho bạn

Nạp tiền Tải lên
Đăng ký
Đăng nhập