Managerial Accounting: An Overview

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Managerial Accounting: An Overview by Mind Map: Managerial Accounting: An Overview

1. Financial and Managerial Accounting: Seven Keys Differences

1.1. users

1.2. time focus

1.3. verifiability versus relevance

1.4. precision versus timeliness

1.5. subject

1.6. rules

1.7. requirement

2. Work of Management

2.1. planning

2.1.1. establish goals

2.1.1.1. specify how goals will be achieved

2.1.1.1.1. develop budgets

2.2. controlling

2.2.1. the control function gathers feedback to ensure that plans are being followed

2.2.1.1. feedback in the form of performance reports that compare actual results with the budget are an essential part of the control function

2.3. decision making

2.3.1. Decision making involves making a selection among competing alternatives

2.3.1.1. what should we be selling?

2.3.1.2. who should we be serving?

2.3.1.3. how should we execute?

3. Managerial Accounting Activities

3.1. Marketing management majors

3.2. Human resources management majors

3.3. Operations management majors

4. Strategic Management Skills

4.1. A strategy is a "game plan" that enables a company to attract a customers by distinguishing itself from competitors

4.1.1. the focal point of a company's strategy should be its target customers

5. Customer value propositions

5.1. Customer Intimacy Strategy

5.1.1. understand and respond to individual customer needs

5.2. Operational Excellence Strategy

5.2.1. deliver products and services faster, more conveniently and at lower prices

5.3. Product Leadership Strategy

5.3.1. offer higher quality products

6. Enterprise Risk Management

6.1. a process used by a company to proactively identify and manage risk

7. Process Management

7.1. a business processs is a series of steps that are followed in order to carry out some task in a business

7.1.1. business functions making up the value chain

7.1.1.1. R&D

7.1.1.2. Product Design

7.1.1.3. Manufacturing

7.1.1.4. Marketing

7.1.1.5. Distribution

7.1.1.6. Customer Service

8. Lean production or Just-In-Time production

8.1. customer places an order

8.1.1. create production order

8.1.1.1. generate component requirements

8.1.1.1.1. components are ordered

8.2. Traditional Manufacturing

8.2.1. produce goods in anticipation of sales

8.2.1.1. store inventory

8.2.1.1.1. make sales from finished goods inventory

9. Theory of Constraints

9.1. 1. Identify the weakest link

9.1.1. 2. Allow the weakest link to set the tempo

9.1.1.1. 3. Focus on improving the weakest link

9.1.1.1.1. 4. Recognize that the weakest link is stronger

9.2. A constraint (also called a bottleneck) is anything that prevents you from getting more of what you want

9.2.1. the constraint in a system is determined by the step that has the smallest capacity

9.2.1.1. the goal is to manage the constraints with the intent of generating more business rather than cutting the workforce

10. Measurement Skills

10.1. a good manager complements an understanding of strategy, risks, and business processes with data-driven

10.1.1. primary purpose is to teach measurement skills that managers use to support planning, controlling, and decision-making activities

11. Leadership Skills

11.1. Six Skills of an Effective Leader

11.1.1. Technical competence

11.1.2. High integrity

11.1.3. Understand how to implement organizational change

11.1.4. Strong communication skills

11.1.5. Capable of motivating and mentoring other people

11.1.6. Effectively manage team-based decision processes

12. Why Have Ethical Standards?

12.1. Ethical standards in business are essential for a smooth functioning economy

12.1.1. Without ethical standards in business, the economy, and all of us who depend on it for jobs, goods, and services would suffer

12.1.1.1. Abandoning ethical standards in business would lead to a lower quality of life with less desirable goods and services at higher prices

13. IMA Guidelines for Ethical Behaviour

13.1. Competence

13.2. Confidentiality

13.3. Integrity

14. Corporate Social Responsibility

14.1. CSR is a concept whereby organizations consider the needs of all stakeholders when making decisions

14.1.1. customers

14.1.2. employees

14.1.3. suppliers

14.1.4. communities

14.1.5. stockholders

14.1.6. environmental & human rights advocates