cost-accounting-2英.ppt

1、Chapter 1Introduction to Cost AccountingCost AccountingFoundations and EvolutionsKinney,Prather,Raiborn Learning Objectives(1 of 2)Describe the relationships among financial,management,and cost accountingIdentify two common organizational strategiesDescribe the value chain and the major value chain

2、functionsLearning Objectives(2 of 2)Explain why accountants must understand the organizations structure in order to perform effectivelyIdentify the sources of ethical standards for cost accountantsTwo Types of AccountingFinancialMeet external information needsComply with GAAP ManagementMeet internal

3、 information needsDoes not have to comply with GAAPAccounting DifferencesFinancialExternal focusWhole organizationHistoricalQuantitativeMonetaryVerifiableGAAPFormal recordkeepingAccounting DifferencesFinancialExternal focusWhole organizationHistoricalQuantitativeMonetaryVerifiableGAAPFormal recordke

4、epingManagerialInternal focusSegments or divisionsCurrent/projectedQuantitative/qualitativeMonetary and nonmonetaryTimely/reasonable estimateBenefits exceed costsFormal and informal recordkeeping Relationship of Financial,Management,and Cost Accounting FINANCIALACCOUNTING MANAGEMENTACCOUNTINGCOSTACC

5、OUNTING Product CostsProduct Cost InformationExternal parties-stockholders,creditors,regulatorsFor investment and credit decisionsComplies with GAAPEnterprise-wide focusProduct Cost InformationExternal parties-stockholders,creditors,regulatorsFor investment and credit decisionsComplies with GAAPEnte

6、rprise focusInternal partiesPlanning,controlling,decision makingEvaluating performanceIncludes upstream and downstream costsDisaggregatedCost Management GoalsReduce costs Improve customer satisfactionOrganizational StrategyDevelop Mission StatementWhat an organization wants to accomplishHow its prod

7、ucts/services can meet customer needsWhy the organization existsUsed to develop an organizations strategyModify over timeOrganizational StrategyDevelop Mission StatementImplement strategyStrategy-A plan to fulfill goals and objectives by deploying resources to create value for customers and sharehol

8、dersOrganization strategy is supported by business unit strategiesOrganizational StrategiesCost leadership strategy-Undercut competitor pricesProduct differentiation strategy-Superior quality products or unique services sold at a premium Core competency critical function or activity providing a comp

9、etitive advantageStrategy QuestionsWho are your five most important competitors?Is your firm more or less profitable than these firms?Compare prices for equivalent products/services.Explain the difference.Is it customers,costs,or profit requirements?What is your competitive advantage?Organizational

10、StrategyDevelop Mission StatementImplement strategyMeasure and control the value chain and managers performanceValue ChainSet of value-adding functions and processes that convert inputs into products/servicesResearch and DevelopmentProduct DesignSupplyProductionMarketingDistributionCustomer ServiceC

11、ommunicate strategy to all members of the value chainOrganizational StrategyDevelop Mission StatementImplement strategyMeasure and control the value chain and managers performanceEthics and LegislationSarbanes-Oxley Act CEOs and CFOs personally accountable for the accuracy of their organizations financial reportingForeign Corrupt Practices Act prohibits bribes to obtain/retain business Ethics&Management AccountantsStandards of Ethical Conduct for Management AccountantsCompetenceConfidentialityIntegrityObjectivityCompetenceConfidentialityIntegrityObjectivity