...Management Accounting Research, 2000, 11, 349–362 doi: 10.1006/mare.2000.0135 Available online at http://www.idealibrary.com on Activity-based costing in the U.K.’s largest companies: a comparison of 1994 and 1999 survey results John Innes*, Falconer Mitchell† and Donald Sinclair* This paper reviews the results of two U.K. surveys of activity-based costing (ABC) in the U.K.’s largest companies. These provide an opportunity to assess the changes that have occurred in the ABC adoption status of companies over a recent 5-year period. For the ABC users, some comparative information is provided on the nature of the ABC systems in use, their designers, the uses to which they have been put and the levels of success and importance that participants attribute to them. For the non-users, the reasons for their lack of commitment to ABC are explored. c 2000 Academic Press Key words: activity-based costing; perceptions of success; survey. 1. Introduction Activity-based cost/management (ABC)1 has now maintained a high profile status as an important management accounting innovation for well over a decade (Bjornenak and Mitchell, 1999). However, despite a strong and durable advocacy (Cooper, 1988; Cooper and Kaplan, 1991, 1992, 1998; Kaplan, 1992), several reservations have been expressed concerning (a) the substance of its practical attraction (Bjornenak, 1997; Gosselin, 1997; Malmi, 1999), i.e. that it may be a fad or fashion, engendering a bandwagon effect rather than a genuine and...
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...Chapter 01 The Changing Role of Managerial Accounting in a Dynamic Business Environment Chapter 01 The Changing Role of Managerial Accounting in a Dynamic Business Environment Answer Key True / False Questions 1. Controlling involves the coordination of daily business functions within an organization. FALSE AACSB: Reflective Thinking AICPA BB: Industry AICPA FN: Decision Making Bloom's: RC Difficulty: Easy Learning Objective: 01-02 Explain four fundamental management processes that help organizations attain their goals. 2. Measuring the performance of managers and subunits is not an objective of managerial accounting. FALSE AACSB: Analytic AICPA BB: Critical Thinking AICPA FN: Research Bloom's: RC Difficulty: Easy Learning Objective: 01-03 List and describe five objectives of managerial accounting activity. 3. Middle-level managers would likely be considered internal users of accounting information rather than external users. TRUE AACSB: Reflective Thinking AICPA BB: Resource Management AICPA FN: Reporting Bloom's: RC Difficulty: Easy Learning Objective: 01-04 Explain the major differences between managerial and financial accounting. 4. A controller is normally involved with preparing financial statements. TRUE AACSB: Analytic AICPA BB: Resource Management AICPA FN: Reporting Bloom's: RC Difficulty: Medium Learning Objective: 01-06 Describe the roles of an organization's chief financial...
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...DEFENCE OF HISTORICAL COST ACCOUNTING i. Historical cost is relevant in making economic decisions. * Ijiri present 3 reasons historical cost is relevant for making decision * It effect the evaluation n selection of decision rules. It used the past info to measures the quality of their past decisions. * Provides input for satisficing notion where some managers make decisions that will support expected or satisfactory outcome. They are consider how much has already earned rather than how much mote they can earn. * It is used bcoz it imposed on decision makers by their environment. Eg: taxation decision n cost plus contract. ii. Historical cost is based on actual, not merely possible transaction. * Record done based on actual transactions made. * Ijiri- it possible to prepared a balance she on the basis of year-end market price without references to actual transactions. * Historical cost provides evidences for determining how efficiency management has meet their responsibilities. iii. Through history, FS based on historical cost have been found to be useful. * Mautz – “if whose who make management n investment decision had found financial reports based on historical cost useful over the years, changes in acctg would long since have been mad” iv. The best understood concept of profit is the access of selling price over historical cost. * People understand the basic notion of actual cost compared to the selling...
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...Statements on Management Accounting PRACTICE OF MANAGEMENT ACCOUNTING TITLE Value Chain Analysis for Assessing Competitive Advantage CREDITS This statement was approved for issuance as a Statement on Management Accounting by the Management Accounting Committee (MAC) of the Institute of Management Accountants (IMA). IMA appreciates the support of The Society of Management Accountants of Canada (SMAC) in helping create this SMA and extends appreciation to Joseph G. San Miguel, of the Naval Postgraduate School, who drafted the manuscript. Published by Institute of Management Accountants 10 Paragon Drive Montvale, NJ 07645-1760 www.imanet.org Special thanks are due to Randoif Holst, SMAC Manager, Management Accounting Guidelines, for his continuing project supervision and to the members of the focus group (including MAC members Dennis Daly and Thomas Huff) for contributing to the improvement of the final document. Copyright © 1996 Institute of Management Accountants All rights reserved Statements on Management Accounting PRACTICE OF MANAGEMENT ACCOUNTING Value Chain Analysis for Assessing Competitive Advantage TABLE OF CONTENTS I. II. III. IV. Rationale . . . . . . . . . . . . . . . . . . . . . . . 1 Scope . . . . . . . . . . . . . . . . . . . . . . . . . 1 The Value Chain Defined . . . . . . . . . . . . .1 Competitive Advantage and Customer Value . . . . . . . . . . . . . . . . . . .2 V. The Role of the Management Accountant...
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...diXESSE ! The ESSENTIAL ACCOUNTING DICTIONARY SPHINX DICTIONARIES es·sen·tial. ADJ. Of the utmost importance. • The most comprehensive pocket-size dictionary • Easy-to-understand definitions • Written by a leading authority in the field Wit Kate Mooney Accoun ting T and Phra erms ses 300O h MORE TH AN The ESSENTIAL ACCOUNTING DICTIONARY es·sen·tial ADJ. Of the utmost importance. The ESSENTIAL ACCOUNTING DICTIONARY es·sen·tial ADJ. Of the utmost importance. Kate Mooney AN IMPRINT OF SOURCEBOOKS, INC.® NAPERVILLE, ILLINOIS SPHINX PUBLISHING ® www.SphinxLegal.com Copyright © 2008 by Kate Mooney Cover and internal design © 2008 by Sourcebooks, Inc.® All rights reserved. No part of this book may be reproduced in any form or by any electronic or mechanical means including information storage and retrieval systems—except in the case of brief quotations embodied in critical articles or reviews—without permission in writing from its publisher, Sourcebooks, Inc.® All brand names and product names used in this book are trademarks, registered trademarks, or trade names of their respective holders. Sourcebooks and the colophon are registered trademarks of Sourcebooks, Inc.® First Edition: 2008 Published by: Sphinx® Publishing, An imprint of Sourcebooks, Inc.® Naperville Office P.O. Box 4410 Naperville, Illinois 60567-4410 (630) 961-3900 Fax: (630) 961-2168 www.sourcebooks.com www.sphinxlegal.com This publication is designed to provide...
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...addition, this summary will include various vendor selection considerations, such as evaluation criteria and performance measurements, for those processes that will be outsourced. GENERAL OUTSOURCING INFORMATION: The following is some general information regarding the outsourcing of business processes: * Outsourcing promises valuable opportunities, but may also pose substantial challenges and risks * One of the top reasons for outsourcing failures is due to the mismanagement of agreements * The outsourcing market is still overall relatively immature (Krell, 2007) OUTSOURCING DECISION MAKING PROCESS: Before deciding whether or not to outsource any of our business processes, we decided to use three evaluations, other than cost, to ensure that a sound outsourcing decision will be made. We want to ensure that our decision ultimately aligns with our overall strategy, objectives, capabilities, and plans. The three evaluations include: * Identify Strategic Drivers – Identifying the company-specific strategic drivers for the outsourcing decision of each business process is essential to keep everyone on the same page throughout the process. * Evaluate the Full Range of Options – A thorough evaluation of the full range of options includes considerations of shared service arrangements, as well as all sourcing possibilities. * Assess Internal Capabilities – Assessing the internal capabilities of each sourcing option must include an honest evaluation of systems...
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... Date: Please Enter Date here Yes No NS N/A | Checklist Questions | | 1. Are the company shareholder's approved of the project? | | 2. Is the company management approved of the project? | | 3. Has the employee's involved been fully informed of the project? | | 4. Does the project follow or improve the company's mission? | | 5. Does the project have a mission? | | 6. Has accounting reviewed the project? | | 7. Has accounting provided a report on the costs of the project? | | 8. Is the company ready to introduce the project? | | 9. Are the management and employees ready to work on the project till complete? | | 10. Does the project interfere with any Human Resource policies or procedures? | | 11. Are the employee's working on the project knowledgeable about the skills needed? | | 12. Has the Project Manager been chosen? | | 13. Can an internal audit be done on the project later? | | 14. Are all the three phases being followed? | NS = Not Sure N/A = Not Applicable Risk Assessment Department: Preparer: Date: Please Enter Date here Yes No NS N/A | Checklist Questions | | 1. Has the control risk been...
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...Role of Managerial Accounting in a Dynamic Business Environment True / False Questions 1. Controlling involves the coordination of daily business functions within an organization. True False 2. Measuring the performance of managers and subunits is not an objective of managerial accounting. True False 3. Middle-level managers would likely be considered internal users of accounting information rather than external users. True False 4. A controller is normally involved with preparing financial statements. True False 5. The upper limit on the production of goods and services if everything works perfectly is known as practical capacity. True False Multiple Choice Questions 6. Which of the following statements about managerial accountants is false? A. Managerial accountants more and more are considered "business partners." B. Managerial accountants often are part of cross-functional teams. C. An increasing number of organizations are segregating managerial accountants in separate managerial-accounting departments. D. In a number of companies, managerial accountants make significant business decisions and resolve operating problems. E. The role of managerial accountants has changed considerably over the past decade. 7. The day-to-day work of management teams will typically comprise all of the following activities except: A. decision making. B. planning. C. cost minimizing. D...
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...functions within an organization. True False | 2. | Measuring the performance of managers and subunits is not an objective of managerial accounting. True False | 3. | Middle-level managers would likely be considered internal users of accounting information rather than external users. True False | 4. | A controller is normally involved with preparing financial statements. True False | 5. | The upper limit on the production of goods and services if everything works perfectly is known as practical capacity. True False | 6. | Which of the following statements about managerial accountants is false? A. | Managerial accountants more and more are considered "business partners." | B. | Managerial accountants often are part of cross-functional teams. | C. | An increasing number of organizations are segregating managerial accountants in separate managerial-accounting departments. | D. | In a number of companies, managerial accountants make significant business decisions and resolve operating problems. | E. | The role of managerial accountants has changed considerably over the past decade. | | 7. | The day-to-day work of management teams will typically comprise all of the following activities except: A. | decision making. | B. | planning. | C. | cost minimizing. | D. | directing operational activities. | E. | controlling. | | 8. | Which of the following functions is best described...
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...Impact of Investment in Human Resource Training and Development on Employee Effectiveness in Nigerian Banks Khadijat Adenola Yahaya (Mrs. ) Department of Accounting and Finance, University of Ilorin Abstract The success of any organization depends on the ability of its human resource to utilize other resources such as capital, equipment and land for the achievement of organizational objectives. Human resource thus requires the necess ary attention in order t o achieve corporate objectives. This paper investigates the impact of investment in h uman resource training and development on employees' e ffectiveness in N igerian banks. Descriptive survey research was adopted for the study. A quantitative measure published by the Institute of Intellectual Capital Research and approved by the Saratoga Institute database was used (o assess human resource effectiveness in three randomly s elected banks. Also, an instrument titled Assessment of Trai ning and Development Activities Scale (ATDAS) was administered to one hundred and twenty -five randomly selected employees of the selected banks in Ilorin metropolis, Kwara State, Nigeria. Relevant data was obtained from the three selected banks ' audited f inancial accounts for a period of five years (2001 -2005). The collected data was analyzed using descriptive a nd inferential statistics. The results showed that Zenith Bank had the best Human R esource M anagement and A ccounting practice p erformed best . T he study also ...
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...ijcrb.webs.com OCTOBER 2010 VOL 2, N O 6 INTERDISCIPLINARY JOURNAL OF CONTEMPORARY RESEARCH IN BUSINESS Management Control System Hamed Armesh Faculty of Management ,MMU,Malaysia Listed in ULRICH S Dr. Habibollah Salarzehi , Dr.Baqer Kord Faculty of Management, University of Sistan and Baluchestan Abstract A management control systems (MCS) is a system which gathers and uses information to evaluate the performance of different organizational resources like human, physical, financial and also the organization as a whole considering the organizational strategies. Finally, MCS influences the behaviour of organizational resources to implement organizational strategies. Keywords: Management , Control , Systems 1. Introduction To introduce this topic and understanding the importance of management control system we know that In the present globalised world, organisations need to use management control systems that go beyond the strategies that focus on acquisition of technology and logistics which are not sufficient to give the organisation sustained long-term competitive edge over its competitors. Management Control Systems (MCS) as defined by Anthony (cited by LangfieldSmith, 1997) is the process by which managers ensure that resources are obtained and used effectively and efficiently in the accomplishment of the organization s objectives . MCS is a system used in an organization which collects and uses information to evaluate the performance of the organizational resources...
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...Institute of Cost and Works Accountants of India established in year 1944 (Founder member of IFAC, SAFA and CAPA) Volume 45 No. 5 May 2010 ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ IDEALS THE INSTITUTE STANDS FOR q to develop the Cost and Manage-ment Accountancy profession q to develop the body of members and properly equip them for functions q to ensure sound professional ethics q to keep abreast of new developments. The views expressed by contributors or reviewers in this Journal do not necessarily reflect the opinion of The Institute of Cost and Works Accountants of India nor can the Institute by any way be held responsible for them. The contents of this journal are the copyright of The Institute of Cost and Works Accountants of India, whose permission is necessary for reproduction in whole or in part. ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ the management accountant, May, 2010 Cost Management for Growth of SME in Textile Sector by R. Gopal 387 Performance Monitoring in SME Sector by I. Mohamed Ibrahim 388 Cost Management : Key to Survival in Current Global Meltdown by S. Jeyaraj 392 Cost Management : Key to Survival...
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...Digital Accounting Research Vol. 11, 2011 pp. 25 - 43 ISSN: 1577-8517 The impact of Accounting Information Systems (AIS) on performance measures: empirical evidence in Spanish SMEs1 Elena Urquía Grande. Complutense University of Madrid. Spain. eurquiag@ccee.ucm.es Raquel Pérez Estébanez. Complutense University of Madrid. Spain. raquel.perez@ccee.ucm.es Clara Muñoz Colomina. Complutense University of Madrid. Spain. cimunnoz@ccee.ucm.es Abstract. This research study is aimed, based on empirical evidence, at measuring the relationship between the use of the Accounting Information Systems (AIS) by the Small and Medium Sized Enterprises (SMEs) in Spain, and firms’ improved performance indicators and productivity. This empirical study is based on a survey carried out among small and medium-sized firms to ascertain the extent to which development and implementation of accounting information systems had taken place, and subsequently an analysis was made as to how much this introduction may impact on improvement in outcome indicators and productivity. As interesting results we have found that there is a positive relationship among the SMEs that use AIS for fiscal and bank management and better performance measures. This research provides value added in accounting literature given the scarcity of works dealing with the relationship between the application and use of AIS and performance and productivity indicators in SMEs in Spain. Keywords: Accounting Information...
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...AN EMPIRICAL INVESTIGATION OF THE EVOLUTION OF MANAGEMENT ACCOUNTING PRACTICES by Magdy Abdel-Kader University of Essex and Robert Luther University of Bristol WP No. 04/06 October 2004 Address for correspondence: Magdy Abdel-Kader Department of Accounting, Finance and Management University of Essex Colchester Essex CO4 3SQ UK E-mail: mabdel@essex.ac.uk 1 An Empirical Investigation of the Evolution of Management Accounting Practices Magdy Abdel-Kadera and Robert Lutherb a: Department of Accounting, Finance and Management, University of Essex, Wivenhoe Park, Colchester, CO4 3SQ (Correspondence address) b: Bristol Business School, U.W.E., Bristol, BS16 1QY The authors are grateful for the constructive comments of participants at the EIASM conference on New Directions in Management Accounting: Innovations in Practice and Research, December 2002, Brussels. Financial support from the Chartered Institute of Management Accountants is acknowledged with gratitude. 2 An Empirical Investigation of the Evolution of Management Accounting Practices Abstract This paper investigates and reports on the status of management accounting practices in UK industry. The analysis operationalises the IFAC statement on Management Accounting Concepts and its description of the evolution of management accounting. The results, based on responses from 123 practising management accountants, suggest that the management accounting employed in many UK industrial companies is not...
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...© 1998 American Accounting Association Accounting Horizons Vol. 12 No. 4 December 1998 pp. 363–373 Financial Information and Quality Management—Is There a Role for Accountants? Leif M. Sjoblom Leif M. Sjoblom is a Professor at the International Institute for Management Development. SYNOPSIS: Different opinions exist with respect to the usefulness of financial information for operational decision making. While academics encourage the provision of accounting information on quality, few companies provide it. This article explores the usefulness (or lack thereof) of Cost of Quality (COQ) and quality-related financial information through the use of a survey and informal discussions and interviews with quality managers. Financial information can be used to flag quality problems, to select and prioritize quality improvement projects and to choose corrective action. The results suggest that financial information has a limited role in supporting these operational decisions. The limitations of current COQ systems, and the lack of relevant, reliable and timely financial information, are among the reasons cited for not using COQ. However, there is a perceived need for additional financial reporting in order to attract the attention of top management and to motivate managers. In order to make COQ more relevant to practitioners, future research must not only focus on improving and disseminating best practices, but also on the multi-disciplinary implementation process. Data Availability:...
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