PPT Ch01 Langfield-Smith 6ed

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corporate finance

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<ul><li><p>Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint slides to accompany Management Accounting: Information for managing and creating value 6e Slides prepared by Kim Langfield-Smith Chapter 1</p><p>Management accounting: information for creating value and managing resources </p><p>1-*</p><p>Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint slides to accompany Management Accounting: Information for managing and creating value 6e Slides prepared by Kim Langfield-Smith</p></li><li><p>Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint slides to accompany Management Accounting: Information for managing and creating value 6e Slides prepared by Kim Langfield-SmithOutlineAustralian organisations in the 21st centuryWhat is management accounting?Management accounting vs financial accounting informationManagement accountants within organisationsManagement accounting and strategyPlanning and controlImportant considerations in the design of management accounting systemsManagement accounting responses to the changing business environment</p><p>1-*</p><p>Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint slides to accompany Management Accounting: Information for managing and creating value 6e Slides prepared by Kim Langfield-Smith</p></li><li><p>Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint slides to accompany Management Accounting: Information for managing and creating value 6e Slides prepared by Kim Langfield-SmithAustralian organisations in the 21st centuryOrganisations have faced increasing global competition since the early 1990s Corporatisation and privatisation of public sector bodies competing with private sectorRise of e-commerce, rapid changes in technology, reliance on strategic alliances, business networks, global mobility of labourRise of the service-based economyIncreasing customer demandsClimate change issues</p><p>1-*</p><p>Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint slides to accompany Management Accounting: Information for managing and creating value 6e Slides prepared by Kim Langfield-Smith</p></li><li><p>Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint slides to accompany Management Accounting: Information for managing and creating value 6e Slides prepared by Kim Langfield-SmithWhat is management accounting?</p><p> 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 value1-*(cont.)</p><p>Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint slides to accompany Management Accounting: Information for managing and creating value 6e Slides prepared by Kim Langfield-Smith</p></li><li><p>Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint slides to accompany Management Accounting: Information for managing and creating value 6e Slides prepared by Kim Langfield-SmithWhat is management accounting? (cont.)Customer valueThe value that a customer places on particular features of a product or serviceShareholder valueThe value that shareholders or owners place on a businessResourcesFinancial and non-financial, including information, work processes, employees, committed customers and suppliersDetermine the capabilities and competencies of the organisation</p><p>1-*</p><p>Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint slides to accompany Management Accounting: Information for managing and creating value 6e Slides prepared by Kim Langfield-Smith</p></li><li><p>Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint slides to accompany Management Accounting: Information for managing and creating value 6e Slides prepared by Kim Langfield-SmithManagement accounting systemsSystems that produce the information required by managers to create value and manage resourcesInformation provided on a regular basis includesEstimates of the costs of producing goods and servicesInformation for planning and controlling operationsInformation for measuring performanceAd-hoc information may also be supplied to satisfy managers short-term and long-term decision-making needs1-*</p><p>Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint slides to accompany Management Accounting: Information for managing and creating value 6e Slides prepared by Kim Langfield-Smith</p></li><li><p>Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint slides to accompany Management Accounting: Information for managing and creating value 6e Slides prepared by Kim Langfield-SmithManagement accounting informationFocus is on the needs of managers within the organisationFlexibility in the types of information providedInfluenced byManagers information needs, nature of the resources they manageDifferences in production and service technologies, organisational structure, organisational size, the external environment, level of sophistication of computer systemsUsed by senior managers through to operational managers</p><p>1-*</p><p>Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint slides to accompany Management Accounting: Information for managing and creating value 6e Slides prepared by Kim Langfield-Smith</p></li><li><p>Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint slides to accompany Management Accounting: Information for managing and creating value 6e Slides prepared by Kim Langfield-SmithManagement accounting and financial accounting informationFinancial accountingThe practice of preparing and reporting accounting information for parties outside the organisationCosting systems are common to both financial and management accountingA system that estimates the cost of goods and services as well as the cost of organisational units, such as departments1-*</p><p>Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint slides to accompany Management Accounting: Information for managing and creating value 6e Slides prepared by Kim Langfield-Smith</p></li><li><p>Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint slides to accompany Management Accounting: Information for managing and creating value 6e Slides prepared by Kim Langfield-SmithManagement accounting vs financial accounting1-*</p><p>Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint slides to accompany Management Accounting: Information for managing and creating value 6e Slides prepared by Kim Langfield-Smith</p></li><li><p>Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint slides to accompany Management Accounting: Information for managing and creating value 6e Slides prepared by Kim Langfield-SmithManagement accountants within organisationsMost large organisations have a finance function at the corporate levelSenior accountantsFinancial controller, chief accountant, finance manager, general manager (GM) of accounting, group accountantAccounting staff may be found in operating divisions as well as corporate levelFinancial accounting function may be distinct from management accounting functionManagers from other functional areas may also undertake management accounting activities1-*</p><p>Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint slides to accompany Management Accounting: Information for managing and creating value 6e Slides prepared by Kim Langfield-Smith</p></li><li><p>Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint slides to accompany Management Accounting: Information for managing and creating value 6e Slides prepared by Kim Langfield-SmithManagement accounting processes and techniquesSupport the organisations formulation and implementation of strategyContribute to improving the organisations competitive advantage through process improvement and cost management techniquesProvide information to help manage resources through systems of planning and control Provide estimates of the costs of an organisations outputs, to support the strategic and operational decision needs of managers</p><p>1-*</p><p>Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint slides to accompany Management Accounting: Information for managing and creating value 6e Slides prepared by Kim Langfield-Smith</p></li><li><p>Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint slides to accompany Management Accounting: Information for managing and creating value 6e Slides prepared by Kim Langfield-SmithManagement accountingand strategyManagement account ants contribute to an organisations formulation and implementation of strategyVisionThe desired future state or aspiration of an organisationUsed by senior managers to focus the attention and energies of staffMission statementDefines the purpose and boundaries of the organisation</p><p>1-*(cont.)</p><p>Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint slides to accompany Management Accounting: Information for managing and creating value 6e Slides prepared by Kim Langfield-Smith</p></li><li><p>Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint slides to accompany Management Accounting: Information for managing and creating value 6e Slides prepared by Kim Langfield-SmithManagement accounting and strategy (cont.)Objectives (or goals)Specific statements of what the organisation aims to achieveOften quantifiedRelates to a specific period of timeStrategiesThe direction that the organisation intends to take over the long term to meet its mission and achieve its objectivesFocus on ways to manage the organisations resources to create value for customers and shareholders1-*(cont.)</p><p>Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint slides to accompany Management Accounting: Information for managing and creating value 6e Slides prepared by Kim Langfield-Smith</p></li><li><p>Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint slides to accompany Management Accounting: Information for managing and creating value 6e Slides prepared by Kim Langfield-SmithManagement accountingand strategy (cont.)Major decisions in formulating strategiesIn what business will we operate?How should we compete in that business?What systems and structures should we have in place to support our strategies?Corporate strategy Choices about the types of businesses to operate in, which businesses to acquire and divest and how best to structure and finance the organisationIn publicly listed companies, the choice of corporate strategy is influenced by the expectations of major shareholders and securities market1-*(cont.)</p><p>Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint slides to accompany Management Accounting: Information for managing and creating value 6e Slides prepared by Kim Langfield-Smith</p></li><li><p>Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint slides to accompany Management Accounting: Information for managing and creating value 6e Slides prepared by Kim Langfield-SmithManagement accountingand strategy (cont.)1-*(cont.)</p><p>Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint slides to accompany Management Accounting: Information for managing and creating value 6e Slides prepared by Kim Langfield-Smith</p></li><li><p>Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint slides to accompany Management Accounting: Information for managing and creating value 6e Slides prepared by Kim Langfield-SmithManagement accountingand strategy (cont.)Business (or competitive) strategyThe way a business competes within its chosen marketDistinct business strategies for each business unitStrategy implementationPlanning and managing the implementation of strategyNew structures, new systems, new production processes, new marketing approaches, new human resource management policies</p><p>1-*(cont.)</p><p>Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint slides to accompany Management Accounting: Information for managing and creating value 6e Slides prepared by Kim Langfield-Smith</p></li><li><p>Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint slides to accompany Management Accounting: Information for managing and creating value 6e Slides prepared by Kim Langfield-SmithManagement accountingand strategy (cont.)Competitive advantageAdvantages that a business may have over another that are difficult to imitate, achieved throughCost leadershipEconomies of production, superior process technologies, tight cost controlProduct differentiationSuperior quality, customer service, delivery performance, product features</p><p>1-*(cont.)</p><p>Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint slides to accompany Management Accounting: Information for managing and creating value 6e Slides prepared by Kim Langfield-Smith</p></li><li><p>Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint slides to accompany Management Accounting: Information for managing and creating value 6e Slides prepared by Kim Langfield-SmithManagement accounting and strategy (cont.)Strategic planningLong-term planning, usually undertaken by senior managers with a three to five-year timeframeInvolves corporate strategy decisionsDraws on management accounting informationImplementing strategiesManagers at all levels share the responsibility for implementationLong-term plans need to be linked to budgeting systemsPerformance measurement systems compare actual outcomes to budgets and other targets1-*</p><p>Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint slides to accompany Management Accounting: Information for managing and creating value 6e Slides prepared by Kim Langfield-Smith</p></li><li><p>Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint slides to accompany Management Accounting: Information for managing and creating value 6e Slides prepared by Kim Langfield-SmithPlanningA broad concept that is concerned with formulating the direction for future operationsAllows an organisation to consider and specify all resources needed in the futureOccurs at all levels of the organisationA budget is an example of a short-term plan that summarises the consequences of an organisations operating activities for a specific future time period1-*</p><p>Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint slides to accompany Management Accounting: Information for managing and creating value 6e Slides prepared by Kim Langfield-Smith</p></li><li><p>Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint slides to accompany Management Accounting: Information for managing and creating value 6e Slides prepared by Kim Langfield-SmithControllingInvolves putting mechanisms in place to ensure that operations proceed according to plan and that objectives are achievedManagement accounting information provides information for control by comparing actual performance with plans, targets or budgetsControl systems are the systems and procedures that provide regular information to assist in control1-*</p><p>Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint slides to accompany Management Accounting: Information for managing and creating value 6e Slides prepared by Kim Langfield-Smith</p></li><li><p>Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint slides to accompany Management Accounting: Information for managing and creating value 6e Slides prepared by Kim Langfield-Smith</p><p>1-*Planning and controlling</p><p>Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint slides to accompany Management Accounting: Information for managing and creating value 6e Slides prepared by Kim Langfield-Smith</p></li><li><p>Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint slides to accompany Management Accounting: Information fo...</p></li></ul>