Samenvatting Midterm Management Accounting

MANAGEMENT ACCOUNTING

Week 1

Hoofdstuk 1
Management accounting
à Measures and reports fin. and non-fin. information and helps and motivates managers to make
good decisions to fulfill an organization’s goals.

Management accounting is a value-adding continuous improvement process of planning, designing,
measuring, and operating both nonfinancial information systems and financial information systems
that guides management action, motivates behavior, and supports and creates the cultural value
necessary to achieve an organization’s strategic, tactical, and operating objectives.

Cost accounting
à Measures and reports financial and non-financial data that relates to the cost of acquiring or
consuming resources by an organization.

Twee rollen van Management Accounting
• Decision facilitating
Voorbeeld: Start-ups36% van de bedrijven gaat failliet binnen 2 jaar na opstart.
- Zwak businessplan
- Tekort aan cash
- Prijs en kostprijs problemen
Management accounting is belangrijkom de link tussen strategie en financiële controle te versterken.
MA kan expertise inzetten om scenario’s of strategische opties te vergelijken.




• Decision influencing




1

, MANAGEMENT ACCOUNTING

Decision influencing: Guide people towards creating value for firm
• Motivating employees: management accounting provides a selection of best alternative
methods of doing things. It motivates employees to improve their performance by setting
targets and using incentive schemes.
• Coordinating among departments: management accounting is helpful in coordinating the
departments of an organization by applying thorough functional budgeting and providing
reports for the same to the management on a regular basis.
• Controlling performance: to assure effective control, various techniques are used by a
management accountant such as budgetary control, standard costing, management audit,
etc. Management accounting provides a proper management control system to the
management. Reports are provided to the management regarding the effective and efficient
use of resources.

Management Accounting in actie




2

, MANAGEMENT ACCOUNTING

Management Accounting vs. Financial Accounting




Hoofdstuk 20 - Strategisch Management Accounting

‘Management Accounting’
à Meer Strategisch, meer lange termijn en meer niet-financieel naast financieel

“het is niet langer te doen om kosten of revenues etc.” (chapter 20)

Voorbeeld: webshop voor lokale schoenenwinkel




Strategic management accounting
à A type of accounting that focuses not only on internal factors of a company, but factors that are
external. This includes industry-wide financials, averages, and upcoming trends.

Week 2
H14-H2-H8-H9
H14
Introductie m.b.t. kosten
Wat zijn kosten?
• “Resource sacrificed to achieve a given objective”
• Usually expressed in monetary terms ($, €, £, etc)
• Goal: Find out the true costs (e.g. of producing a car) Crucial for DECISION MAKING




3

, MANAGEMENT ACCOUNTING




Responsibility accounting
If decentralized organization structure => Responsibility centers
Different types of responsibility centers:
- Cost center: Accountable for costs
- Revenue center: Accountable for revenues
- Profit center: Accountable for revenues and costs
- Investment center: Accountable for revenues, costs, and investments




Choice of responsibility centers is based on the controllability principle
à Keep managers/employees accountable for the items they can control

Idea:
Who has the best information/knowledge to explain deviations from targets?
à Not: Who can we blame for deviations from targets?

Welke kosten bestaan er?




H2
Cost object
à ‘thing’ for which cost information is needed.
Examples:
- Products or product lines, Departments or business unit, Projects or programs, Service,
Activity or process, Customers...




4