ACCTG 7

• Strategic cost management (SCM)


  A cost management technique that aims to reduce costs and boost the strategic position of an organization. It's the process of combining cost information with the structure of decision-making to reinforce the overall business strategy. Cost is measured and managed to align it with the organization's business strategy.
• This approach can provide a sustainable competitive edge by combining cost information with decision making
• Planning


  Managers establish organizational goals and create a course of action to achieve them. During the planning phase, management makes strategic decisions to set a direction for the organization.
• Approaches to planning


  • Strategic planning
  • Tactical planning
  • Operational planning
• Strategic planning


  This type of planning is often carried out by an organization's top management and usually creates goals for the entire organization. It analyzes threats to the organization, evaluates the organization's strengths and weaknesses and creates a plan of how the organization can best compete in its environment. Strategic planning usually has a long timeframe of three years or more.
• Tactical planning


  Tactical planning is the shorter-term planning of an objective that will take a year or less to achieve. It is usually carried out by an organization's middle management. Tactical planning is usually aimed at a specific area or department of the organization such as its facilities, production, finance, marketing or personnel.
• Operational planning


  Operational planning is the process of using tactical planning to achieve strategic planning and goals. Operational planning creates a timeframe for putting a portion of the strategic goal into practice operationally.
• Organizing


  The purpose of organizing is to distribute the resources and delegate tasks to personnel to achieve the goals established in the planning stage. Managers may need to work with other departments of the organization, such as finance and human resources, to organize the budget and staffing. During the organizing stage, managers strive to create a work environment conducive to productivity. Managers typically take employees' motivation and aptitude into account to match employees with roles and tasks that best fit their abilities.
• Leading


  Leading consists of motivating employees and influencing their behavior to achieve organizational objectives. Leading focuses on managing people, such as individual employees, teams and groups rather than tasks. Though managers may direct team members by giving orders and directing to their team, managers who are successful leaders usually connect with their employees by using interpersonal skills to encourage, inspire and motivate team members to perform to the best of their abilities.
• Situational leadership styles


  • Directing
  • Coaching
  • Supporting
  • Delegating
• Controlling


  Controlling is the process of evaluating the execution of the plan and making adjustments to ensure that the organizational goal is achieved. During the controlling stage, managers perform tasks such as training employees as necessary and managing deadlines. Managers monitor employees and evaluate the quality of their work. They can conduct performance appraisals and give employees feedback, providing positive remarks on what they are doing well and suggestions for improvement. They may also offer pay raise incentives to high-performing employees.
• Financial Accounting


  To keep a record of all financial transactions
• Cost Accounting


  To analyze the expenditure so as to ascertain the cost of various products manufactured by the firm and to fix the prices
• Management Accounting


  To assist management in taking rational policy decisions and evaluate the impact of its decisions and actions
• Ethical conduct of management accountants


  • Competence
  • Confidentiality
  • Integrity
  • Credibility
• Competence


  Maintain an appropriate level of professional expertise by continually developing knowledge and skills. Perform professional duties in accordance with relevant laws, regulations, and technical standards. Provide decision support information and recommendations that are accurate, clear, concise, and timely. Recognize and communicate professional limitations or other constraints that would preclude responsible judgment or successful performance of an activity.
• Confidentiality


  Keep information confidential except when disclosure is authorized or legally required. Inform all relevant parties regarding appropriate use of confidential information. Monitor subordinates' activities to ensure compliance. Refrain from using confidential information for unethical or illegal advantage.
• Integrity


  Mitigate actual conflicts of interest; regularly communicate with business associates to avoid apparent conflicts of interest. Advise all parties of any potential conflicts. Refrain from engaging in any conduct that would prejudice carrying out duties ethically. Abstain from engaging in or supporting any activity that might discredit the profession.
• Credibility


  Communicate information fairly and objectively. Disclose all relevant information that could reasonably be expected to influence an intended user's understanding of the reports, analyses, or recommendations. Disclose delays or deficiencies in information, timeliness, processing, or internal controls in conformance with organization policy and/or applicable law.