STRATEGIC MANAGEMENT ACCOUNTING

UNIT – I
MANAGEMENT ACCOUNTING – SCOPE- STRATEGIC IMPORTANCE – NATURE AND CHARACTERISTICS OF MANAGEMENT CONTROL SYSTEM “The accounting people are expected to do things that are much more strategic and much more forward looking than they have been expected to do in the past”. INTRODUCTION1 Mission of Disney – “To offer quality entertainment that people seek out”. The Walt Disney Company has long been widely admired as visionary and well-managed company. But how does Disney continually make the right calls in terms of investment capital, providing new attractions that appeal to its audience while earning a superior return for its shareholders? The company evaluated its existing business and new initiatives based on their ability to contribute to Disney’s long term cash flow and earnings growth, and to provide returns that exceed Disney’s cost of capital. Through strategic planning, sound decision making, and creative and disciplined management, the Walt Disney Company promises to continue providing quality entertainment to its customers and attractive financial returns to its investors for decades to come. Many different kinds of organisations affect our daily lives. Manufacturers, retailers, service industry firms, agribusiness companies, non-profit organisations and government agencies provide us with a vast array (range/collection) of goods and services. All these organisations have two things in common. First, every organisation has a set of goals or objective. An Airline’s goals might be profitability and customer service. A police department’s goals would include public safety and security coupled with cost minimization. Second, in pursuing an organisation’s goals, managers need information. The information needs of management range across various issues such as financial, production, marketing,