Supervision - observing Leadership - show employees how it is done Motivation - may be negative and positive, giving incentives Communications -

01 Basic Considerations in MAS Flashcards by Leann Ganzon

Refer to the function of professional advisory (consulting services), the primary purpose of which is to improve the client’s use of its capabilities and resources to achieve the objectives of the organization.

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What do capabilities and resources refer to?

labor force and assets

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Encompasses long-range objectives and policies or organization and is concerned with corporate results rather than sectional objectives

Top level planning or overall/strategic planning

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Differentiate consultant and controller.

Consultant - independent
Controller - employee

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Focuses on how to attain and satisfy customers, offer goods and services that meet their needsm and increase operating profits

Business-level strategy

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Concerned about market position

Business-level strategy

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Differentiate market leader vs challenger vs follower vs nicher

Market leader - head of the industry
Challenger - competes directly with market leader
Follower - happy with current market, not compete directly with market leader and challenger
Nicher - cater to special field

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Is when a business makes a decision that affects the whole company

Corporate-level strategy

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Focus on different departments and divisions

Corporate-level strategy

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Set of decisions an organization makes regarding the production and delivery of its goods

Operational strategies

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Refers to methods companies use to reach their objectives

Operational strategies

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[What function?]
Preparation of budget

Planning

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Basic Functions of Management

Planning - foresee what will happen in the future
Organizing - gather needed resources and capabilities
Staffing - hiring
Directing - telling employees what to do
Controlling - ensuring company achieves goals

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[What function?]
Performance evaluation

Controlling

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Directing functions

Supervision - observing
Leadership - show employees how it is done
Motivation - may be negative and positive, giving incentives
Communications -

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Differentiate financial accounting and management accounting:
Users
Time frame
Quality of data
Focus
Financial reporting
Standards
Required?

Users: external - internal
Time frame: summarizes past transactions - strong emphasis on future
Quality of data: objective and verifiable - relevant
Focus: precision - timeliness
Financial reporting: company as whole - segments of a company
Standards: conform with reporting standard - does not conform
Required?: mandatory - optional

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Assists external users with business decisions centering on a variety of issues

Financial Accounting

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Identifies, collects, measures, classifies and reports information that is used by managers for costing purposes, planning, controlling and decision-making

Cost Accounting

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Concerned specifically with how cost information and other financial and non-financial information should be used for planning, controlling and decision-making

Management Accounting

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Attempts to satisfy costing objectives for both financial and management accounting

Cost Accounting

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[Controllership or treasurership?]
Planning for control

Controllership

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[Controllership or treasurership?]
Reporting & interpreting

Controllership

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[Controllership or treasurership?]
Tax administration

Controllership

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[Controllership or treasurership?]
Government reporting

Controllership

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[Controllership or treasurership?] Evaluating & consulting

Controllership

[Controllership or treasurership?] Economic appraisal

Controllership

[Controllership or treasurership?] Protection of assets

Controllership

[Controllership or treasurership?] Provision of capital

Treasurership

[Controllership or treasurership?] Investor relations

Treasurership

[Controllership or treasurership?] Short-term financing

Treasurership

[Controllership or treasurership?] Banking & custody

Treasurership

[Controllership or treasurership?] Credits & collections

Treasurership

[Controllership or treasurership?] Investments

Treasurership

[Controllership or treasurership?] Insurance

Treasurership

[Line or Staff] Vested with the authority to decide

Line

[Line or Staff] Directly responsible in attaining corporate objectives

Line

[Line or Staff] Downward authority

Line

[Line or Staff] Manufacturing, operations, production, sales

Line

[Line or Staff] Front-line

Line

[Line or Staff] Upward support

Staff

[Line or Staff] Provides support services

Staff

[Line or Staff] Provides consultancy functions

Staff

[Line or Staff] CFO

Line

[Line or Staff] Back-end support

Staff

[Line or Staff] Finance and Accounting functions

Staff

[Line or Staff] Controller

Staff

3 main roles and activities of Management Accountants

1. Strategic decisions 2. Identifying and building resources and capabilities 3. Implementing strategies

[Line or Staff] HR

Staff

[Line or Staff] Treasurer

Line

[Line or Staff] CEO

Line

Five stages of strategic decisions

1. Clarify your vision 2. Gather and analyze information 3. Formulate a strategy 4. Implement your strategy 5. Evaluate and control

[Mission/Vision/Goals/Values] Defines the company's business, its objectives and its approach to reach those objectives.

Mission

[Mission/Vision/Goals/Values] Describes the desired future position of the company

Vision

[Mission/Vision/Goals/Values] Tangible ways you'll carry out your mission and progress towards your vision

Goals

[Mission/Vision/Goals/Values] What you stand for and beliefs through which you create and carry out your goals

Values

Goals should be SMART. What is SMART?

Specific Measurable Attainable Realistic Time-bound

Michael Porter's Three Generic Strategies

1. Cost leadership 2. Differentiation 3. Focus

Porter's Five Forces

1. Threat of new entrants 2. Bargaining power of buyers 3. Bargaining power of suppliers 4. Threat of substitutes 5. Intensity of competitive rivalry

Blue ocean vs Red ocean in marketing

Blue ocean - few competitors Red ocean - saturated market

Four Market Structures

1. Pure competition - anyone can enter the market 2. Monopoly - sole seller 3. Oligopoly - few sellers 4. Monopolistic competition - offer unique product but many sellers

Describe market share and market growth of each quadrant in the BCG-Growth Share Matrix

Stars - high growth potential and high market share Question mark - high growth potential but low market share Cash cow - low growth potential but high market share Dog - low growth potential and low market share

What is the management accountant's role in implementing strategy?

1. Implementing startegy 2. Supporting managers by providing information to improve strategic, planning and control decisions 3. Enhancing the value of management accounting systems by guiding managers to focus on challenges

The full lifecycle of a product or process, including material sourcing, production, consumption and disposal/recycling processes.

Value Chain

The full lifecycle of a product or process, including material sourcing, production, consumption and disposal/recycling processes.

Supply Chain

Bodies that offer CMA certification

* Institute of Management Accounts * Chartered Professional Accountants of Canada * The Institute of Certified Management Accountants * Chartered Institute of Management Accountants * Certified Global Management Accountant - granted not applied for

Code of Ethics that govern CPAs in the Philippines

IESBA - International Ethics Standards Board of Accountants

Code of Ethics that govern CMAs

IMA Code of Ethics

4 overarching principles of IMA Code of Ethics

Honesty Fairness Objectivity Responsibility

IMA Personal Standards

Competence Confidentiality Integrity Credibility

[IMA Personal Standards] Maintaining an appropriate level of professional leadership and expertise by enhancing knowledge and skills

Competence

[IMA Personal Standards] Performing professional duties in accordance with relevant laws, regulations and technical standards

Competence

[IMA Personal Standards] Provide decision support information and recommendations that are accurate, clear, concidse and timely

Competence

[IMA Personal Standards] Refrain from using information for illegal or unethical advantage.

Confidentiality

[IMA Personal Standards] Abstain from engaging in or supporting any activity tha might discredit the profession.

Integrity

[IMA Personal Standards] Mitigate actual conflicts of interest. Regularly communicate with business associates to avoid apparent conflicts of interest.

Integrity

[IMA Personal Standards] Inform relevant parties regarding appropriate use of confidential information.

Confidentiality

Keep information confidential except when disclosure is _____________.

authorized or legally required

[IMA Personal Standards] Communicate information fairly and objectively.

Credibility

[IMA Personal Standards] Provide all relevant information that could reasonably be expected to influence an intended user's understanding of the reports, analyses or recommendations.

Credibility

[Global Trends] Focus management reports on what is expected to happen rather than on what happened in the past.

Predictive accounting

[IMA Personal Standards] Communicate professional limitations or other constraints that would preclude responsible judgment.

Credibility

[IMA Personal Standards] Report any delays or deficiencies in information, timeliness, processing or internal controls.

Credibility

[Global Trends] From this general information, computers will look for trends.

Big data/business analytics

Benefits of big data analytics

1. descriptive 2. diagnostic 3. predictive 4. prescriptive

Benefits of business analytics

1. more informed decision-making 2. greater revenue 3. improved operational efficiency

5 Roles of Management in times of change

1. communicator 2. advocate 3. coach for employees 4. liaison to project team 5. resistance manager

[Global Trends] Gathering information on customers and subsequently developing a product.

Customer-driven environment

[Global Trends] Process and methodology designed to enhance the company's performance and enable management to better respond to presented challenges as well as opportunities on a product.

Enterprise Performance Management

[Global Trends] Consolidation of business operations that are used by multiple parts of the same organization and a common operational strategy designed to reduce costs by eliminating repetition of efforts.

Shared Services