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Planning & control & role management accounting (What is…
Planning & control & role management accounting
What is management?
Defined as planning, control & decision making :checkered_flag:
Rational planning = objectives, activities & resources
Decision making = courses of actions considering costs & benefits
Levels of management
Strategic
Senior managers
Decisions about possible future
Corporate strategy
Business unit strategy
Functional strategies
Production
Marketing
Financial
Human resources
Competitive environment
Porter's five forces model
Customers have power; price, quality, service
Value chain
Inbound logistics
Raw materials
Manufacturing & product design
Globalisation
Worldwide markets
Productions facilities
Financial markets
WB, IMF, WTO
Increase flows
Increase in competition
Global telecommunications
Tactical
Middle managers
Detail action plans
Allocating resources
responsibilities to particular areas
Operational
Specific tasks on day to day
Production scheduling
Purchases plans
Placing advertisements
Types information at each level
Senior (STEELP)
Middle managers (monitoring & control with variance reports)
Operational (purchases orders, production schedules, inventory control
What is management accounting?
Management information system
Accounting system
production planning & scheduling
Inventory records
Purchase & sales orders
HRM
Marketing data, customers
Common applications
Profit planning
Budgetary control
Working capital
Methods
budgeting
performance measurement
risk analysis
marginal costing
contribution analysis
Discounted cash flows
MA compare FA
FA finance statements
MA to plan and control activities
FA annually
MA monthly
FA accounting regs
MA no laws
Past performances
MA up to date
The role
Planning & control
MIS provides FA & MA info
Same basic data to cost accounting
Database for information