TOPIC 1 : MANAGEMENT ACCOUNTING PRACTICES IN NEW BUSINESS ENVIRONMENT
by Fatin Nur Haziqah
1. Evolution
1.1. Continuous Improvement
1.2. Service Vs. Manufacturing Firms
1.3. Emergence of New Industries
1.4. Computer-Integrated Manufacturing
1.5. Information and Communication Technology
1.6. Product Life Cycles
1.7. Total Quality Management
1.8. Time-Based Competition
1.9. Just-in-Time Inventory
1.10. Cross-Functional Teams
1.11. Focus on the Customer
1.12. Global Competition
2. Changing focus
2.1. Dimensions
2.1.1. Financial / Non-financial information
2.1.2. Internal / External information
2.1.3. Operational / Strategic information
2.2. Financial for Non-financial
2.2.1. Quality and process times
2.2.2. More subjective measurements
3. Roles
3.1. Provide strategic direction
3.2. Operational control – Provide feedback about the quality, timeliness and efficiency of tasks performed and operating units
3.3. Service/Product and Customer Costing
3.4. Organizational Performance Measurement – measure performance in line with strategy
4. More focus on strategy:
4.1. Strategic mapping and measurement
4.2. Strategic focus on decisions
4.3. Customers profitability analysis
4.4. Supplier analysis
4.5. Decision-making within the value chain
4.6. Costing systems that support strategy
4.7. Focus on life-cycle rather than annual patterns
5. Definition : A value-adding continuous improvement process of planning, designing, measuring and operating both non-financial information systems and financial information systems
5.1. guides management action, motivates behavior, and supports and creates the cultural values necessary
5.2. to achieve an organization’s strategic, tactical and operating objectives
6. Changes in Business Environment
6.1. Aim : To increase shareholder value
6.2. Increase Competitiveness by;
6.2.1. Improve product/ service quality
6.2.2. Delivery responsiveness
6.2.3. Cost performance
6.2.4. Innovativeness
6.3. MAS need to consider;
6.3.1. how large and complex the organization is
6.3.2. What sort of market the organization operates in
6.3.3. What management styles exist within the organization
6.4. Design
6.4.1. the external environment
6.4.2. technology
6.4.3. organisational structure
6.4.4. organisation size
6.4.5. strategy
6.4.6. organisational and national culture