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Managerial Accounting questions well answered.
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Managerial Accounting questions well answered.
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Managerial Accounting questions wellanswered.
Strategy ANS - - An accepted definition does not exist
- General direction to achieve goals and objectives derived from the organization's mission (purpose)
and vision ( how it wants to be perceived by the outside world)
Planning ANS - - Selecting a course of action.
- Must balance opportunities against resources
- Requires input from analysis such as a budget
Implementation ANS - - Carrying out day to day activities
- Making short term and long term decisions
- Managerial tools such as cost analysis and cost-volume-profit can be used
Control ANS - - Obtaining feedback to ensure the organization is moving toward the goals
- likely involves a performance report that compares actuals to budgeted
Managerial Accounting and Financial Accounting ANS - - Managerial accounting provides information
for managers of an organization who direct and control its operations.
- Financial accounting provides information to shareholders, creditors, and others who are outside the
organization.
Aspects of Managerial Accounting ANS - - For Managers
- Emphasis on the Future
- Emphasis on Relevant Data (less on verifiability)
- Emphasis on timeliness (less on precision)
,- Focus segments rather that the whole organization
- No prescribed standards
- Not mandatory
Reasons for an increase in relevance and importance of managerial accounting information: ANS - -
Expanded competitive boundaries - Globalization
- Organizations need to find new ways of doing business
- Ethical responsibility and corporate governance
Lean business model ANS - Practice of eliminating waste while meeting customer needs and yielding
positive company returns.
lean business model practices ANS - - Just-In-Time
- Total Quality Management
- Process Re-engineering
- Theory of Constraints
Just-in-Time ANS - A logistics process in which goods arrive when needed for production, use, or sale
rather than sitting in storage.
The following process for example:
- Receive customer orders,
- Schedule production
- Receive materials just in time for production
- Complete parts just in time for assembly into products
- Complete products just in time to ship customers
Benefits of a JIT System ANS - - Reduced inventory costs
- Greater customer satisfaction
- Higher quality products
- More rapid response to customer orders
, - Less warehouse space needed
Total Quality Management ANS - The Plan-Do-Check-Act Cycle
Total Quality Management Plan ANS - Study the current process
Collect data
Analyse data
Develop Plan
Determine Measurement technique
Total Quality Management Do ANS - Implement the plan
Collect data
Total Quality Management Check ANS - Evaluate the data
Determine if expected results were achieved
Total Quality Management Act ANS - If successful, make changes permanent
if unsuccessful, try again
Process Reengineering ANS - - A business process is diagrammed in detail
- Every step in the business process must be justified
- The process is redesigned to include only those steps that make our product more valuable
Anticipated results of Process Reengineering ANS - - Process is simplified.
- Process is completed in less time.
- Costs are reduced.
- Opportunities for errors are reduced.
Theory of Constraints ANS - A sequential process of identifying and removing constraints in a system.
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