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Advanced Cost Management

Advanced Cost Management. Session II: The Organizational Role of Management Accountants (ORMA). Mgt. Acctg.--Strategic Implications. Management accountants that use BP in their business decisions better meet “customer” needs. M/A’s that use BP are more cost efficient and cost effective.

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Advanced Cost Management

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  1. Advanced Cost Management Session II: The Organizational Role of Management Accountants (ORMA) FORENSIC ACCOUNTING – BA 124 – Fall 2011

  2. Mgt. Acctg.--Strategic Implications • Management accountants that use BP in their business decisions better meet “customer” needs. • M/A’s that use BP are more cost efficient and cost effective. • M/A’s that use BP provide more timely results and excel at their own time mgt. STRATEGIC COST MANAGEMENT - BA122B – Fall 2011 Slide 2-2

  3. IMA’s M/A Roles • Business and strategic partner • Provider of strategic business understanding • Participant in problem solving • Team member • Provider of information • Process facilitator • ….yet, companies are often unwilling to support this behavior…why is that? STRATEGIC COST MANAGEMENT - BA122B – Fall 2011 Slide 2-3

  4. From Scorekeeper to Player • Role change driven by: • Information technology • Global competition • Two models for management accountants • Corporate cop--evaluator • Business advocate--enabler • Dual accountability & org. structure • Solid vs dotted-line relationship STRATEGIC COST MANAGEMENT - BA122B – Fall 2011 Slide 2-4

  5. Business Partnering--Attribute Implications • BP provides broad operations oriented technical insight to an organization. • The BP approach drives behavioral changes in day-to-day activities. • The BP approach changes the attitudes of non-financial people towards the finance/accounting team. STRATEGIC COST MANAGEMENT - BA122B – Fall 2011 Slide 2-5

  6. Ethics • Lack of ethics--everyone loses • South Florida Bermuda Triangle of Ethics • Tyco • W.R. Grace • Bausch and Lomb • Sunbeam • Enron, World-com, Health-South, Adelphia STRATEGIC COST MANAGEMENT - BA122B – Fall 2011 Slide 2-6

  7. Ethics and You • You will face an ethical challenge • It could impact • Your job • Your family • Your relationships • Your financial stability • Your physical well-being • You have only ONE reputation... STRATEGIC COST MANAGEMENT - BA122B – Fall 2011 Slide 2-7

  8. Accounting Business Skills“The What” • Business Perspective • Organizational Focus • Bias for Action • Communication Excellence • People Proficiency STRATEGIC COST MANAGEMENT - BA122B – Fall 2011 Slide 2-8

  9. Financial Management Guidelines“The How” • Cc: Communication vs. control • KTT: Know the territory • MBWA: Manage by walking around • R ƒ R3: Respect is a function of… • responsiveness • reliability • relevance STRATEGIC COST MANAGEMENT - BA122B – Fall 2011 Slide 2-9

  10. Just Say “No” to... A Things we do to ourselves!!! B C STRATEGIC COST MANAGEMENT - BA122B – Fall 2011 Slide 2-10

  11. Scarlet Letter of Accounting • Lacks Reality • Distraction • Lacks Cost Mgt. STRATEGIC COST MANAGEMENT - BA122B – Fall 2011 Slide 2-11

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