1. Cost Management and Strategic Decision Making Chapter 1

2.  Provide management with information to evaluate the impact of current or proposed strategic and operational activities  Create more value at less cost  Minor role – measure and report costs that have already occurred The Role of Management Accounting

3.  Strategy and information support  Provide information and guidance  Evaluate alternatives  Cost management vs. cost cutting  Value inventory Functions of the Management Accountant

4. Characteristics of the Management Accountant  Team player  Visionary  Long-term focus  Understands quantitative and qualitative aspects  Self-guided  Understands causality of costs  Ethical

5. IMA Standards of Ethical Conduct  Competence  Continues education, follows laws, rules and standards, provides clear, complete information, recognizes and communicates own professional limitations  Confidentiality  Maintains and enforces confidentiality of information, refrains from using confidential information for unethical advantage

6. IMA Standards of Ethical Conduct  Integrity  Avoids conflicts of interest, outside influence, unethical conduct, subversion of organization objectives, activities that would discredit the profession  Credibility  Communicate information fairly and objectively, disclose all relevant information, disclose delays or deficiencies in information, timeliness, processing or internal controls

7. Identifying Competitive Advantages  SWOT analysis  Internal  Strengths  Weaknesses  External  Opportunities  Threats

8. Identifying Competitive Advantages  Value chain analysis  Focus on improving customer’s perceived value  Should not just look inward  The way we do things is only a part of the chain  How do we make money  Cost vs. profit strategic business units (SBUs)  Do we outsource?

9. Fostering a Culture of Improvement  Identify a need or opportunity for change  Get help  Create a vision and strategy to achieve it  Communicate in both directions  Highlight achievements  Learn from mistakes  Do not fear or penalize failures