Macs Definition

Question 1

Controls definition

Answer 1

CIMA- the ability to direct the financial and operating policies of an entity with a view of gaining economic benefits

Question 2

Visual controls example

Answer 2

Ibm placement- daily dashboard - morning call

Question 3

Internal audit

Answer 3

Companies gaining assurance about quality of controls and financial statements
Link in risk management

Question 4

Accounting information systems and how

Answer 4

Manage and organise data and info for managers
Manually, spreadsheets, computerised e.g sage
Help with abc
Make visual dashboard

Question 5

Role of SMA

Answer 5

Hoque 2003- identifying gathering and analysing info for management to make strategic decisions

Question 6

Porter five forces

Answer 6

1980- suppliers customers, new entrants, substitute products, rivalry

Question 7

Criticism of porter

Answer 7

Thurlby, 1998

IT alone can be used to get ahead of competition

Question 8

Balanced Scorecard

Answer 8

Kaplan and Norton, 1987
Measures help give overall view of company
Examine customer sat, financial measures, internal processes, learning and growth,
Used to monitor and improve or implement new strategy

Question 9

Balanced scorecard support and example

Answer 9

Kasurinen 2002- forward looking and helps with monitoring and decision making
Easy Jet- differentiated- low prices short haul
No frills or luxury- entertaining crew- performance measures- time waiting for baggage- monitored by supervisors

Question 10

Balanced scorecard critique

Answer 10

Hoque 2014- concept is to General

Might not fit into organisational culture

Question 11

Target costing

Answer 11

Competitive environments
Meet customer exp of price
Deduct target profit margin
Estimate actual cost
Cut costs in production to meet

Question 12

Target costing- yield management example

Answer 12

Marriott
Trade off between price customer willing to pay and occupancy
David Roberts revenue guru- rather have empty room than customers believe can get cheaper price at last min

Question 13

Criticism of analysing macs

Answer 13

Outlet 1999

Need to take into account company objectives, strategy, targets- concept MA goes beyond financials

Question 14

Why internal audit is more important now

Answer 14

Sarbanes oxley act- followed scandals such as enron where Andersons shredded documents- greater focus on internal- reduces external audit costs

Question 15

Why MA’s have changed

Answer 15

Now have degrees- more well rounded on management as well as financial processes- budgeting, coatings- abc

Question 16

Quote- social side

Answer 16

Otley, 2001- ‘accounting is a social science as much as a hard science’

Question 17

Definition of organisation

Answer 17

Buchanan and huczynski (1991) social arrangements for the controlled performance of collective goals

Question 18

Why macs are different for different types of orgs

Answer 18

Vary by size, location, market, activity, goals

Question 19

Accounting social side- link human relations theory

Answer 19

Involve social science- employees need to be happy- less likely to be ill- link to having ideas listened to- link Maslow- empowered- self esteem

Question 20

Problems with traditional ma

Answer 20

Short term, emphasis artificial accounting periods- budgetting, focus on costs/backward looking,

Question 21

Defender strategy

Answer 21

Miles and snow- concentrate on existing production- traditional

Question 22

Total quality management

Answer 22

Continuous improvement- reflect and improve- efficiency time saving
Link Kaizen- Japanese principle of continuous improvement in company culture- quality and tech