Abstract This paper analyzes the factors necessary for a managerialaccountant to succeed in an independent practice and within a larger organization. The author emphasizes that managerialaccountants must set the standard for communication within their practices, particularly in regard to strategic issues and relationships between other accountants in their practice. Additionally, the paper shows that managerialaccountants must be linked organizationally to the accounting department that they support, which includes training end users to become more proficient in interpreting financial documents. The author concludes that more research is needed in the area of managerialaccounting communication so that managers responsible for making training decisions and communicating on a continual basis will have enough tools with which to base their decisions.
Outline:
Introduction to Communication within the Accounting Profession
Leadership over the ManagerialAccountant Leadership by the ManagerialAccountant Decision-Making by the ManagerialAccountant Staff Motivation through Communication by the ManagerialAccountant Communication and Compensation
Outside Training
Management Priorities by the ManagerialAccountant Communicating Expectations of Staff
Marketing
The Communication of Ethical Standards
Conclusion
From the Paper "As a result, managerial accountants must be flexible to change and adaptation, and those with a broad spectrum of behavioral understanding in addition to financial skills are more properly suited for their positions. This includes a communication medium that reaches the intended audience efficiently and effectively. This paper will analyze the correlation between managerial accountants and their means of communication necessary for their practice to thrive. It will also provide recommendations throughout that managerial accountants can incorporate into their practice in order to bring the profession as a whole to a new level of success."
Abstract This paper deals with managerialaccounting and financial standards. The paper explains how the information being formulated is for a specific audience. The information that managerialaccountants prepare is directly fed to managers within given departments who are dependent upon this information to aid them in their decision-making process.
From the Paper "In the days of Sarbanes-Oxley, never has it been so imperative that accounting and reporting standards be completely above-board. No company wants the dark shadow of an Enron or Worldcom scandal. Therefore all accounting practices must be reviewed, audited and reported. As a result of scandalous situations, there is often fallout that other companies must follow and suffer through as a result. In this case it is the Sarbanes-Oxley Act, which forced the Security and Exchange Commission (SEC) to do everything it could to prevent erroneously financial reporting from continuing in publicly traded companies. The SEC with the help of the Financial Accounting Standards Board (FASB), aided in the implementation of new standards which many companies disliked, to say the least, but understood why they were necessary (Smith, 2005, p. 1)."
Abstract This paper discusses the two unique sub-functions within the accounting field: managerialaccounting and financial accounting. The specific functions, responsibilities and duties of each function are discussed. Further consideration is given to the ethical implications involved with each accounting division. Enron is mentioned as a prime example of how ethical considerations can not only undermine the financial solvency of a company but, ultimately, can cause its demise.
From the Paper "The presence of financial accountants and management accountants in most large corporations today is a testament to the complexity of the global economy, the legal and governance rules an entity must operate under, and the sheer amount of information the profession must deal with on a daily basis. Though there are many functions that overlap within these two divisions of the same profession, each classification serves a uniquely strategic function. In general, financial accounting is responsible for the historical financial records and data of a company and is largely responsible for ensuring legal and regulatory compliance. Managerial accounting is responsible for providing interpretive reports of financial accounts which managers and executives use to make operational decisions and devise corporate strategy. "
Abstract In this article the writer discusses the two unique sub-functions within the accounting field: managerialaccounting and financial accounting. The specific functions, responsibilities and duties of each function are discussed in relation to the broader field of accounting. Further consideration is given to the income statement and balance sheet and how they are related. Finally, the use of accounting principles and techniques in managerial decision-making is also discussed. The document concludes with a brief overview of accounting.
From the Paper "Accounting within the business sphere is largely divided into two separate divisions: financial and managerial accountants. The presence of financial accountants and management accountants in most large corporations today is a testament to the complexity of the global economy, the legal and governance rules an entity must operate under, and the sheer amount of information the profession must deal with on a daily basis. The importance of accounting as a basic function of business activity cannot be overstated."
This paper is an analysis of the financial and managerialaccounting of Krispy Kreme, the international doughnut company, during the period from 1998 to 2002, and the degree to which it indicates future problems.
Abstract This paper explains that, although the road had been a bit rocky, Krispy Kreme's financial position has substantially improved in the five years since 1998. The author points out that the ratio of company and franchised stores sales are somewhat disturbing. The paper indicates that, after 2002, a series of problems developed for the chain, which could not have been foreseen previously. The author relates that Krispy Kreme's managerialaccounting report did not address how a company in good financial position can change once it goes public, expands to foreign countries, looses control of its franchisees and does not keep up its market research program to determine changing social dynamics. The paper stresses that the forward-looking statements of the managerialaccounting involve risks and uncertainties, which may cause the actual results to differ materially from expectations.
From the Paper "These figures do represent the continued investment within the capital expenditures of the company. Otherwise, the depreciation figures would not continue to go up. Krispy Kreme restructured in 1999, a $9,466 cost, which may reflect the poor performance.
Their income from operations is doing well. We see $5,420 in 1998; a loss of $3,702 for 1999; a major payoff for 200 with $10,828 and likewise for 2002, $23,507 and $41,887. However, we do see an equity loss in joint ventures in 2001 and 2002, showing the company, as stated in the report, has ventured into new areas - the real estate."
Abstract This paper looks at the changes needed within accounting practices in light of the recent scandals at Enron and Arthur Andersen. The writer explores the new rules, which have become standard practice in the past few years.
Contents
The Constituencies
Investors
The public
Employees
Managers and executives
CPAs
Auditors
Financial advisors
Governing Bodies
SEC
FASB
GAO
IRS
Congress
From the Paper "There are those doing a lot about the question of ethics in managerial accounting, and those doing little or even creating more opportunities for unethical behavior. If the loopholes are shut down here, will companies go overseas to grease the wheels of commerce? Possibly. Global ethics are not quite as demanding in many parts of the world as most constituencies would like to see them here. (Bray, 2000) Or possibly not. Enron marched across India with its financial sleight-of-hand, injuring that nation"arguably"as it did this one. Perhaps there are ethics watches going on globally in the aftermath."
Abstract It is occasionally heard that good business ethics leads to good business period. Some people may dispute this old maxim for a number of reasons, but there is no question that integrity in business is an excellent way of fostering professional relationships, of building a loyal client base and of preserving a hard-earned business reputation. Suffice it to say transparency in financial and or managerialaccounting is very important for all of those reasons, but it is also important because it protects other innocents for the most part who would otherwise suffer needlessly because of the dishonesty of a few. This paper points out the value in practicing good ethics in business, citing improved professional relationships, greater customer loyalty and protection of the innocent as the main reasons.
Abstract This paper explains that due to their high degree of influence, accounting professionals must adhere to a strict code of ethics. The paper then compares the fields of managerial and financial accounting. The paper also reviews the code of ethics established by the Institute of ManagerialAccounting, which defines accounting ethics in terms of competence, confidentiality, integrity and objectivity, and the 2003 Sarbanes-Oxley law.
From the Paper "In contrast, the primary audience of managerial accountants is internal managers and decision makers. The viewpoint is forward-looking. Financial reports may differ wildly in terms of content and format, based on purpose. Managerial accountant may report on wide-ranging subjects such as costing, performance measures, opportunity costs and the like. As the audience has access to internal accounting information, the outputs of managerial accountants may include a great deal of non-financial information. "
Abstract Accountants and auditors prepare, analyze and verify financial reports crucial to all business and government organizations. Two of the major accounting specialties are public accounting and managerialaccounting.
This paper discusses the differences between chartered public accountants (CPA) and chartered managerialaccountants (CMA) including the clients they serve and the examinations they have to pass before becoming qualified. The paper also examines the differences in wage earnings and career opportunities.
From the Paper "The professional designation of Certified Management Accountant (CMA) is achieved through the CMA Professional Program, a demanding training process in emerging business practices, which fosters management and leadership abilities, interpersonal and communication skills. CMAs are employed at all corporate levels, mostly in middle, senior and executive management positions which include but are not limited to: Chief Financial Officers (CFO), Controllers, treasurer, director of internal audit, chief accountant or cost accountant, director of taxation, managers or supervisors. Other CMAs are employed as accountants, auditors, analysts and consultants, with careers for management accounting professionals in all sectors of business and industry. (Rosenberg, pp.55-69.)"
Abstract This paper explains that cost accounting is a part of managerialaccounting: Whereas financial accounting is concerned with recording actual financial transactions, managerialaccounting is concerned with the discovery of relationships in financial data. The author points out that one of the critical factors involved in cost accounting is the differentiation of fixed costs, which must be borne by a firm regardless of activity levels, and variable costs, which fluctuate according to activity levels, so that managers are able to construct break-even charts and other decision-making and control tools. The paper states that the three principal functions of standard cost systems are (1) identifying the actual costs of operation, (2) determining the achievement of the production operation, and (3) evaluating the performance of the production operation.
Table of Contents
Introduction
Cost Accounting: Definition, Roles, Concepts, and Applications
Standard Costs
Transfer Prices
Summary
From the Paper "Production costs are also considered in the contexts of full costs, direct costs, indirect costs, job costs, process costs, standard costs, joint costs, and others. These costing concepts are all a part of the cost accounting process. Each of these concepts provides the manager with a different perspective of costs. These different perspectives may provide a means of enhancing the efficiency of an operation, without damaging the integ?rity of the firm, even though most of the costs derived through the application of these concepts of costs will differ from the costs derived through the application of financial accounting concepts. The use of costs derived through the application of these managerial accounting concepts permits managers to make valid and rapid decisions on the basis of performance variances from managerial accounting cost factors or ratios."
Abstract This paper addresses what forensic accountants look for in ferreting out who is committing managerial fraud and how. It discusses how auditing relies on tests of controls, risk analysis and sampling to make an honest assessment.
From the Paper "As much as CPA's hate to admit it, auditing is an art not a science. It simply is not cost effective to verify every assertion in a set of financial statements with certainty. Instead, auditing relies on tests of controls, risk analysis and sampling to give the reasonable assurance that a set of financial statements are fairly presented in accordance with the applicable accounting standards. When that reasonable assurance is found to be misplaced, forensic accountants are called in. The definition of forensic accounting according..."
Tags: forensic accounting methods, definition, constrast with financial accounting, auditing
Abstract This paper provides a basic introduction to ABC (Activity Based Costing) methods as a managerialaccounting technique, a comparison to traditional based methods, benefits and disadvantages of ABC. The paper also includes an analysis of ABC methods as a TQM (Total Quality Management) component and provides a summary analysis of the system.
Table of Contents
Abstract
Introduction to Activity Based Accounting Uses for ABC
Implementing ABC
Advantages of ABC Costing
Disadvantages of ABC Costing
ABC versus Traditional Accounting The Concerns of Activity Based Management
Summary Analysis
References
From the Paper "Activity-Based Costing (ABC) arose in the 1980s from the increasing lack of relevance of traditional cost accounting methods. The traditional cost accounting methods were designed around 1870 - 1920 and in those days industry was labor intensive, there was no automation, the product variety was small and the overhead costs in companies were generally very low compared to today. However, from the 1960s - particularly 1980s - this changed rapidly. Activity Based Costing is based on a simple principle: activities consume resources and customers consume activities. Associating the labor and overhead expenses of the business with the activities that consume those resources provides valuable facts. ABC defines categories of activity in overhead departments, which on the one hand are recognizable to overhead department managers but, on the other hand, are driven by factors (cost drivers) which are characteristic of products and other cost objects. This allows a much higher proportion of total company cost to be allocated to products according to causation. Ultimately, ABC provides accounting data points that can be used to improve decision-making and identify cost improvement opportunities. The basic building blocks for ABC are activity accounting spreadsheets for each element of a business. The workload of each activity is measured resulting in a cost per output. "
Tags: comparison, flaws, component, cost, data, labor, y
Abstract This paper discusses how the accountant in a modern organization must be able to perform many more functions than in the past. Managerialaccountants are important in assuring that the organization is on target for meeting strategic goals. It looks at how it is no longer enough to have a basic understanding of receivables, payables and cash flow and how accountants now play an active role in management and decision making. They are responsible for goal setting, forecasting and many other activities that were previously in the realm of management and must consider corporate culture and be able to adapt their techniques to meet specific company needs.
From the Paper "Corporate culture and accounting used to be two terms that should never occur in the same sentence. Accounting was a separate entity from other systems in the organization. Now accounting is an integral part of every phase of the business including legal, political and social systems within an organization (Shraddha and Sidney, 1997). As the needs of an organization change, so do the accounting system change to meet these changing needs. A modern accountant must be more flexible in practice than in the past. Modern accounting practices must be able to adapt a trait that was not synonymous with accounting in the past. Accounting used to adhere to a rigid set of rules and procedures, but now they must remain flexible and willing to change on short notice. "
Abstract This document discusses both a foundational theory of managerial philosophy as well as a modern or contemporary managerial philosophy. The first foundational theory the paper discusses is the Industrial Sociology philosophy as represented in the work of Mayo and supported in such foundational experiments as the Hawthorne Experiments. The modern managerial philosophy paper reviews, is the Quality Management theory whose primary found is Dr. Deming.
From the Paper "Managerial models in contemporary society are probably in their most evolutionary state since management became considered a unique field of study. The field of managerial research has shifted from fixed models of management to an examination of the unique styles that characterize such managerial models. Understanding the various managerial models upon which the science of management is founded and upon which the styles of managerial strategies are derived, provide a profound insight into the development of management qualities in the context of the modern organization and organizational theory. "
This paper defines the term accounting ratios and details why they are a significant tool applied by accountants when presenting accounting statements.
Abstract The writer of this paper examines the importance of accounting ratios in business. Accounting ratios illustrate the present as well as the prospective, so that shareholders can visualize how much gain a business attained, the total worth of the assets and the level of cash reserves available. This well-researched paper discusses the advantages and disadvantages of accounting ratios. One significant drawback of the accounting ratio is that it depends too heavily on the conventional costs that lead to twists in quantifying performance. Ratios are required to be represented meticulously. They can entail the evidences to the performance of the company or financial environment. However, they are unable to demonstrate whether the performance is good or bad out their own. The writer details the manner in which the final figures of accounting ratios are achieved, while discussing the fact that these ratios necessitate some quantitative information for an informed analysis to be made. The writer contends and clearly explains why accounting ratios are completely dependent on the supplied data which may or may not be accurate.
Table of Contents:
Introduction
Discussion
Conclusion
References
From the Paper "A markedly low accounts ratio may give rise to angry suppliers and remarkably high inventory turnover ratios may lead to supply shortages and angry customers. The one that is correct for one company may not be considered appropriate for another one. Besides, no two companies are found to be similar irrespective of the fact that they are competitors in the same industry or market. Application of ratios to evaluate one company with another provides misleading information. Businesses may be within the same industry but have distinguished financial and business risk. Ratios are completely dependent on the data that may or may not be accurate."
