Managerial

Accounting
8th Edition
By
Hansen & Mowen
Arranged by :
Ardhian Eka Praditya
Annisa S.K.P Basic Management
Dwi Wahyuningsih Accounting Concepts
 The management accounting system has three board
objectives to provide:
Chapter 1

Costing services, products, other

Management
Accounting
objectives of interest to
Information System management

Planning, controlling, evaluating, &

continuous improvement

Decision making
INFORMATION NEEDS:
 The Management Process

Planning
Controlling
Detailed actions to
achieve a particular Monitoring plan Decision Making
end implementation & Choosing among
employing competing
corrective action alternatives
when necessary
 Management Accounting and
Financial Accounting
Management Accounting Financial Accounting
Targeted Users Focus on the information needs Focus on the information
of internal users needs of external users
Restrictions on input and No mandatory rules Must follow externally
A process imposed rules
Comparison:
Management Type of Information Financial and nonfinancial Objective financial
Vs. Financial information: subjective information
Accounting information possible
Time orientation Emphasis on the future Historical orientation
Degree of aggregation Internal evaluation and decision Information about the firm a
based on very detailed whole
information
Breadth Board, multidiciplinary More self contain
 A Brief Historical Perspective of
Management Accounting

1980s and 1990s

recognized need for
1950s and improvement a new
1960s management accounting
improvement system
By 1925 to inventory
emphasis on costing
inventory
costing
Beginning systems
between
1880 - 1925
 Current Focus of Management
Accounting

Increasing costumer value to create a sustainable

Activity Based Strategic competitive advantage
Costing (ABC) Positoning
Activity Based
Management
Focus costumer value means that the management
Process Value accounting system should produced information
Analysis Value chain about both realization and sacrifice
Framework

Customers
Orientation

 Cross Functional Understand many functions of the business, from manufacturing to
marketing to distribution to customer service
Perspective
to create an environment that will enable workers to
manufacture perfect (zero-defect) products, has replaced the
Total Quality Management acceptable quality attitudes of the past.

Time as a Competitive Reduce time to market by compressing design,

Element implementation, and production cycles

Improving efficiency for profit performance

Efficiency

to expand sales throughout the world and may lower costs

E - bussines significantly relative to paper-based transactions
The Role of The Management
Accountant
Sarbanes Oxley Act 0f 2002
established stronger government control and
regulation of public companies in the United States

to increased attention to corporate ethics

the intense scrutiny of internal control

Management Accounting and
Ethical Conduct

All management accounting practices were developed to assist

managers in maximizing profits. The objective of profit
maximization should be constrained by the requirement that
profits be achieved through legal and ethical
means
 Ethical Behavior,
Choosing actions that are right, proper, and just. This principle is expressed by the belief that each
member of a group bears some responsibility for the well-being of other members. Willingness to sacrifice
ones self-interest for the well-being of the group is the heart of ethical action.
Company Codes of Conduct and SOX
The Sarbanes-Oxley Act requires that a companys senior financial officers be subject to a code of
ethics or that the company must disclose publicly that they are not. In practice, companies have developed
codes of ethics, often called codes of conduct, that are applicable to all their employees. SOX gives
protection to those who blow the whistle on financial misconduct or fraudulent financial reporting.
Standards of Ethical Conduct for Management Accountant
the Institute of Management Accountants has established ethical standards for management
accountants. In 2005, the IMA issued a revised statement outlining standards of ethical conduct for
management accountants. Called the Statement of Ethical Professional Practice, the revised statement
was designed to accord with the provisions of the Sarbanes-Oxley Act of 2002 and to meet the global needs
of IMAs international members. The revised statement is based on the principles of honesty, fairness,
objectivity, and responsibility
Certification

The CMA

The CPA

The CIA
THE END