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ACCOUNTING

AND ITP R E S E N T E D B Y: J O A N N E B I L L O N E S

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M A N A G E R I A L

A C C O U N T I N G

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To aid th

sophisticaccountinto maintdata, as need forreports f

!a#ing

WHY U

OBJECTIVE: To pro$ide re%e$ant

infor!ation to a companysmanagers, who are interna%parties (or users).

Cost Accounting

Budgeting

Systems study

COMPONENTS:

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Activity-B

Corporate!easuremBusiness

COST ACCOUNTING

Assists management in!easuring and contro%%ingthe costs associated with anorgani#ations variousac$uisition, processing,

distri%ution, and selling activities &ocuses on the $a%ue added

%y an organi#ation to its goodsor services

AIS APPLI

COST ACC

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ACTIVITY-BASED COSTING

A%%ocates o$erhead (indirect production cspeci&c perormance o activities %y aoverhead costs 'ased on the resources consu!ed ' each acti$it (cost drivers)

'Chrysler, an American car manuacturer, claims

saved hundreds o millions o dollars since introduci%ased costing in the early *s. ABC showed thcost o certain parts that Chrysler made was +* had originally %een estimated, a discovery that percompany to outsource the manuacture o manparts.

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CORPORATE PERFORMANCE MEASUR

AND BUSINESS INTELLIGENCE

Responsi'i%it Accounting Sste! (e%ps !anagers trace unfa$ora'%e perf

to the department or individual that cauineciencies.

Each subsystem within an organization accountable for those items over which it hasor immediate corrective actions in case o rom standard costs

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CORPORATE PERFORMANCE MEASUR

AND BUSINESS INTELLIGENCE

Ba%anced Scorecard measures %usiness perormance in our catego

. &nancial perormance

0. customer 1nowledge

+. internal %usiness processes, and2. learning and growth

)e perfor!ance indicators *)PIs+ to meaevaluate activities in each $uadrant o the scorecard (e3. 4inancial 5P"/ 67"8 Customer 5P"/

customers per month)

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CORPORATE PERFORMANCE MEASUR

AND BUSINESS INTELLIGENCE

Dash'oard

monitors 1eyperormance metrics

9seul tools that

presents importantperormance data ineasy-to-understandgraphic ormats

An "B! Cognos dash%oard. :ash

indicators such as colored interfa

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;hefunction a,ects su'ssteorgani#atiencompas

term an&nancial p

BUDGETING

A 'udget is a &nancialpro

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P=A>>">?strategic p

A>A=@S"S/current sy

DS"?>/ system

I!P=!>47==7-9system icontinue t

SYSTEMS STUDY

!anagerial accountants usuallyperorm systems studies.

!any systems studies use theteam approach.

;he team may include

mar1eting specialists, computere3perts, production managers,engineers and industrialpsychologists.

STEPS IN

STUDY

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A U D I T I N G

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AUDITING

Auditing has %ecome a !ature industr.

Accountants are ocusing on additional assurance sarenas other than &nancial reporting.

Assurance %usiness provides third-party testimoclient complies with a given statute, law, ore$uirement

;he growth o Auditing in the &eld o assurance se%e traced to a conerence o the A"CPA in created a Special Committee on Assurance Seidentiy and ormali#e some other areas (%esidesaudits) in which accountants could provide

services.

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AUDITING

Assurance Services identi&ed %y the A"CPA Special Commit

. 6is1 Assessment

0. Business Perormance !easurement

+. "normation Systems 6elia%ility

2. lectronic Commerce

. Dealth Care Perormance !easurement

E. ldercare Plus Automated data processing also creates a need or aevaluate the ris1s associated with such automation.

Sar%anes-73ley Act o 0**0 (S7F) e3pressly or%ids potento interest %y disallowing CPA &rms rom simultaneously HHmanagement consultant and the HHindependent audito

same &rm.

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TAXATION

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TAXATION "normation technology ena%les the auto!

inco!e ta- returns.I;a3 preparation sotware li1e TurboTae3ample o an A"S that ena%les its usersand store copies o trial ta3 returns, e3conse$uences o alternative ta3 strateg

speci&c portions o a return, and eletransmit complete copies o a state or return to the appropriate government agen

lectronic ta3 li%raries and on-line ta3 serviceasier or accountants to perorm ta3 research

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E N D O F R E P O R