seminar 1 slides

8/19/2019 Seminar 1 Slides

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Seminar 1

Course Introduction

ACCT5996

Management Accounting & Business Analysis


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About me …

Associate Professor Paul AndonO: Q3094 | P: 9385 5821 | E: [email protected]

Consultation: Mondays, 4pm-6pm, during teaching weeks

ACCT5996: Management Accounting & Business Analysis

mailto:[email protected]:[email protected]


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Available from Moodle.

Your first source of information for this course.

Contains relevant information about the structure of the

course and its requirements.

Familiarise yourself – it will be assumed you are aware of itscontents.

Let’s now review some of the key elements of

the course outline.

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Introducing the course outline



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“This course examines the use of financial and non-

financial information for the purpose of analysing

business processes to achieve superior

organisational performance. The course introduces

a number of management accounting tools andquantitative techniques that can be used to analyse

how business processes consume resources, create

value for a firm and its customers, and how they

may be examined for improvement opportunities.”

(Course Outline)

What is this course about?



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Seminar preparation and structure

Readings and seminar questions

3 hours, combined lecture and tutorial

Topics outlined in Course Schedule

Assessment

3 in-class quizzes (Weeks 4, 8 and 12) –

10% each

Final examination (Exam Period) – 70%

Course structure and approach



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NEW BOOK: Langfield-Smith et al

Management Accounting: Information

for Creating and Managing Value (7th

edition)

Available from bookshop

Other readings (distributed separately)

Note: Photocopying textbooks is illegal.

You will not be allowed to attend classwith a photocopied textbook.

Course materials



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Special consideration

UNSW policy will be strictly applied

Special consideration is not automatic

Special consideration is for illness or misadventure – it is

not a ‘second bite at the cherry’.

Staff Consultation Staff contact and consultation details are on Moodle

You are welcome to consult any ACCT5996 staff member

Be proactive in seeking assistance: don’t leave it until it’s

too late Email

Correspondence only through official UNSW account

Other important issues



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Seminar 1

Basic Management

Accounting Concepts

UNSW Business School



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1. Describe management accounting, its general

objectives, and its role in an organization

2. Define basic terms and concepts associated with

cost accounting systems and cost assignment.

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Seminar objectives



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Seminar Objectives L&S Chapters and Objectives

LO1 Textbook CH1: LO1.2, LO1.3, LO1.5, LO1.7,

LO1.8

LO2 Textbook CH2: LO2.1-LO2.10


Mapping to the required readings


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Questions to think about:

1. What does it involve?

2. What is it useful for?

3. How is it different from financial

accounting?

4. What are some helpful MA tools?

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“Keeping it Real”: What is Mgmt Acctg?


- internal- inform manager to make a good solution

- decision making

past future

external internalregulation by standards not

F M

http://www.youtube.com/watch_popup?v=0J5O3mvkBOk


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Management accounting definition

Processes and techniques that focus on the

effective and efficient use of organisational

resources to support managers in their

tasks of enhancing both customer value

and shareholder value.


doing more thing with the same resourceachive the outcome

HRFinancial resource

Productstechnological resourcesPhysical resources

Coca-cola management accounting:


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Planning

Formulating the future directionand resourcing of operations

Controlling

Putting mechanisms in place to

ensure that operations proceedaccording to plan and that

objectives are achieved.

Decision making

Making value-adding choices that

drive business forward

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Key management accounting priorities


the project also required a lot of additional information that was not availablefrom routine mgmt accounting reports (budgets, performance, produce reports)

(infrequently inf)


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Seminar Exercise 1 - E1.26 Page 29

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Management v financial accounting


3. climate may effect revenue, more cold drink and foods

4. short-term agency staff to reduce cost of insurance, ...


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Produce the information required by managers to create

value and manage resources.

Components may include

Costing systems

Budgeting systems

Performance measurement systems

Cost management systems

Traditional versus modern approaches

Responding to changes in the business environment

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Management accounting systems

MAS


book p39


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Why do management accountants pay so much attention

to costs? Historic focus on production costs

Ready availability of cost data

Importance of cost information

Non-financial information is increasingly important inmodern management accounting systems

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Emphasis on costs



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What are they?

Resources given up to achieve a particular objective. Generally, costs areincurred to obtain future benefits.

Benefits extending beyond current period assets

Benefits confined to current period expenses

Example:

I buy 300 pens for resale at $1 each

Cost = 300 x $1 each = $300

Assume 100 pens sold COGS = $100 (expense) Inventory = $200 (asset)

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Costs


giới hạn trong

vượt ra ngoài


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Seminar Exercise 2: E2.21 Page 58

Seminar Exercise 3: E2.22 Page 58

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Cost classifications


Prime Costs

Conversion Costs

supervision, manufacturing based, not really involved inmanufacturing activities but affect manufacturing process

chi phí gốc

direct

indirect(both fixed &variable)

Traceability

Behaviour

both, commonly variable

fixed


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Much like people, to understand costs we also need to

appreciate how they behave.

Level of activity, and associated cost drivers

Basic distinction: variable (changes in direction proportion to change in

activity) and fixed (remains unchanged despite change in activity)

We will explore this more next week

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Classifying costs by behaviour


100 cans of Coca-cola or 1000 cans=> sugar changes

cost of machine

1. variable and fix

http://www.businessinsider.com.au/how-not-to-behave-infographic-2015-5?r=US&IR=T


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Measuring cost objects is an important management

accounting function Items for which management wants a separate measure of costs

e.g. products, projects, departments, customers, suppliers.

Direct costs physically observable relationship between cost

and cost object. e.g. Direct labour, various raw materials

Indirect costs cannot be economically identified with or

traced to a cost object

e.g. supervision, inspection, handling, maintenance

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Classifying costs: Traceability


2. nguồn gốc direct or indirect


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Cost object

Direct costs

Indirect

costs

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“Keeping it real”: IKEA and traceability


handling

product design

(direct or indirect)

maintenance

security

inspection

electricity

labour


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Ideally, managers should be held responsible only for costs

they can control or significantly influence Important for motivating managers to properly improve performance

Some costs are controllable in the long term but not in the

short term

Depends on time period committed to for certain costs

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Classifying : Controllable/uncontrollable


3.

computing equipment lease= control long-term (10yr negotiated), short term(uncontrollable rental cost)

not able to influence the pricecharged by suppliers


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The value chain

A set of linked processes or activities that begins with acquiringresources and ends with providing and supporting products and services

that customers value

Various cost classifications can be used within the upstream,

downstream and manufacturing areas

Seminar

Exercise 4:

E2.24Page 59

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Classifying costs: Value chain



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Classifying: Cost flows and financial records


period costs = costs are deducted as expenses during the current periodwithout ever being included in the value of stock held

product costs = identified with a finished product as part of value stock become expenses COGS only when the stock is sold


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Read through the course outline.

Buy the text book ASAP.

Read through the prescribed readings.

Complete seminar questions (as provided on Moodle).

Once again – WELCOME TO ACCT5996I hope you find this an enjoyable and productive course.

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To do list (for next week)


seminar 1 slides

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