Management Accounting Ch01_Stu.ppt

Major Influences on Management Accounting Business process reengineering: Just-in-time (JIT) philosophy Lean manufacturing Computer-integrated manufacturing Six sigma Advances in technology: E-commerce (B2C and B2B) Enterprise resource planning (ERP) XBRL Learning Objective 7 Ethics and standards of ethical conduct Standards of Ethical Conduct The Institute of Management Accountants (IMA) Statement of Ethical Professional Practice for Management Accounting Members Requires members to adhere to a code of conduct regarding: Competence, Confidentiality, Integrity, and Credibility. Ethics No regulation can be as effective in ensuring reliability as high ethical standards of accountants. Integrity Trust Reliability Ethical Dilemmas Managers must choose an alternative and there are: Significant value conflicts among differing interests. Real alternatives that are all justifiable, and Significant consequences on stakeholders in the situation. Unethical Behavior Temptations Emphasis on short-term results: Pressure to meet expected profit numbers. Ignoring the small stuff: Large misdeeds often result from many small ones. Unethical Behavior Temptations Accounting rules: Avoid creative interpretations of the rules. Practice full and fair disclosure to convey company’s performance. Economic cycles: Downturn markets reveal what an upturn market conceals. Vigilance in all stages of economic markets maintains high ethical standards. Copyright 2003 Prentice Hall Publishing * Copyright ? 2011 Pearson Education 1 - * Copyright ? 2011 Pearson Education 1 - * Copyright ? 2011 Pearson Education 1 - * Copyright ? 2011 Pearson Education 1 - * Copyright ? 2011 Pearson Education 1 - * Copyright ? 2011 Pearson Education 1 - * Copyright ? 2011 Pearson Education 1 - * Chapter 1 Managerial Accounting, the Business Organization, and Professional Ethics Introduction to Management Accounting 1. Describe the major users and uses of accounting informat