Download presentation
Presentation is loading. Please wait.
1
Advanced Cost Management Professor William F. O’Brien, MBA, CPA Spring 2005
2
STRATEGIC COST MANAGEMENT - BA122B - Spring 2005Slide 1-2 Introduction n Cost Management n Financial n Non-Financial
3
STRATEGIC COST MANAGEMENT - BA122B - Spring 2005Slide 1-3 Financial Management Evolution DATA INFORMATION ANALYSIS IMPLEMENTATION Today’s Corporate Focus is on Results!
4
STRATEGIC COST MANAGEMENT - BA122B - Spring 2005Slide 1-4 Company F/S Users Economic Decisions Financial Impact (useful & relevant) Financial Accounting Model
5
STRATEGIC COST MANAGEMENT - BA122B - Spring 2005Slide 1-5 Managerial Accounting Model Plan Implement Monitor Adjust Accounting Information Communication Environment
6
STRATEGIC COST MANAGEMENT - BA122B - Spring 2005Slide 1-6 Managerial vs. Financial Accounting Managerial n Internally oriented n Prospective n Operational and financial focus n Timely n Not required n Non-GAAP n Relevant n Sub-unit orientation Financial n Externally oriented n Historical n Financial focus only n Accurate n Required n GAAP n Objective n Entire entity orientation
7
STRATEGIC COST MANAGEMENT - BA122B - Spring 2005Slide 1-7 Four Management Functions …another Perspective n Strategic Management n Planning and Decision Making n Management and Operational Control n F/S Preparation n How is Cost Management Info Used?
8
STRATEGIC COST MANAGEMENT - BA122B - Spring 2005Slide 1-8 Strategic Cost Management n Strategic cost management is the development of cost management information to facilitate the principal management function--strategic management.
9
STRATEGIC COST MANAGEMENT - BA122B - Spring 2005Slide 1-9 Factors Influencing Today’s Business Environment n Global competition n Manufacturing and IT advances n Customer focus n Revised organizational structures n Social, political and cultural changes
10
STRATEGIC COST MANAGEMENT - BA122B - Spring 2005Slide 1-10 Contemporary Mgt. Techniques n Benchmarking n Total Quality Management (TQM) n Continuous Improvement n Activity-Based Costing (ABC) and Mgt. (ABM) n Reengineering n Theory of Constraints (TOC) n Mass Customization n Target Costing n Life-cycle Costing n The Balanced Scorecard
11
STRATEGIC COST MANAGEMENT - BA122B - Spring 2005Slide 1-11 Professional Organizations n Regulatory n IRS n SEC n FASB n IASB n PCAOB
12
STRATEGIC COST MANAGEMENT - BA122B - Spring 2005Slide 1-12 Professional Organizations n Associations n IMA n SMA, Canada n AICPA n FEI n IIA
13
STRATEGIC COST MANAGEMENT - BA122B - Spring 2005Slide 1-13 Ethics n Lack of ethics--everyone loses n South Florida Bermuda Triangle of Ethics n Tyco n W.R. Grace n Bausch and Lomb n Sunbeam n Enron, World-com, Adelphia
14
STRATEGIC COST MANAGEMENT - BA122B - Spring 2005Slide 1-14 Ethics and You n You will face an ethical challenge n It could impact n Your job n Your family n Your relationships n Your financial stability n Your physical well-being n You have only ONE reputation...
15
STRATEGIC COST MANAGEMENT - BA122B - Spring 2005Slide 1-15 Accounting Business Skills “The What” n Business Perspective n Organizational Focus n Bias for Action n Communication Excellence n People Proficiency
16
STRATEGIC COST MANAGEMENT - BA122B - Spring 2005Slide 1-16 Financial Management Guidelines “The How” n Cc n KTT n MBWA n R ƒ R 3 n responsiveness n reliability n relevance
17
STRATEGIC COST MANAGEMENT - BA122B - Spring 2005Slide 1-17 Just Say “No” to... A B C Things we do to ourselves!!!
18
STRATEGIC COST MANAGEMENT - BA122B - Spring 2005Slide 1-18 Scarlet Letter of Accounting Lacks Reality Distraction Lacks Cost Mgt.
19
STRATEGIC COST MANAGEMENT - BA122B - Spring 2005Slide 1-19 Ansari: SMA n Strategic Triangle (QCT) n Competition based on quality, cost & Time n Mgt. Acctg. Triangle (TBC) n Impacts technical, behavioral & cultural aspects n Mgt. Acctg. Links Strategy with Action n It is not an end unto itself n It is an integrating tool
20
STRATEGIC COST MANAGEMENT - BA122B - Spring 2005Slide 1-20 SMA, cont. n The two triangles are dependent upon each other n This process is a framework to ensure that our management accounting tools possess the attributes necessary to achieve our strategic goals
21
STRATEGIC COST MANAGEMENT - BA122B - Spring 2005Slide 1-21 SMA, cont. n QCT Triangle n Self evident n TBC Triangle n Provides Technical insight n Encourages Behavioral changes n Supports Cultural beliefs
Similar presentations
© 2025 SlidePlayer.com. Inc.
All rights reserved.