Discussion: Trends in Management Accounting
The Institute of Management Accountants (IMA) has a series of YouTube Videos on Trends in Management Accounting. We will continue to review and discuss some of these trends to learn about developments in this field for discussions in this course.
Listen to the following two videos in the IMA series:
Required:
Comment and expand on a topic discussed in the videos and provide a real-world example from the news or your own experience.
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7 Trends in Management Accounting – Trend 4. Authored by: IMA. Located at:
. License: All Rights Reserved. License Terms: Standard YouTube License
7 Trends in Management Accounting – Trend 5. Authored by: IMA. Located at:
. License: All Rights Reserved. License Terms: Standard YouTube License
Responses
1.John Perez
As a maintenance manager, I have the duty to ensure that process within the enterprise that my subordinates manage are being done each and everyday. From the moment one of my maintenance managers declare a piece of equipment non mission capable (NMC) to the time they order the parts to get these pieces of equipment back up and running. Our organization uses a checklist method for operations to ensure that these processes are met. Historical data is a big deal in order to ensure these processes are getting completed. Part of these processes are to ensure that the allotment that is given to these managers are correctly spent so that the equipment readiness remains at a high percentage. Other sections have responsibilities as well such as when the maintenance manager orders a part. The supply system has to ensure that the part gets requisitioned and that is where the clock begins. It is all about customer wait time for these supply managers. As Mr Cokin said, everything has a co-existing method that must work together in order to be successful.
2.Leundrea Giles
I enjoyed watching the video in regards to Embedded in EPM methods and Management Accounting. Strategic map allows you to assess your organization’s overall performance at a glance, while also giving you the ability to dig deeper into individual components of the strategy when required. It will also identifies the disparate tasks that must be performed to realize the strategy, making it easier to bread down and analyze. With management accounting Mr. Cokins, expressed how important it is. Management accounting can be a valuable tool for any business. It is important because it helps you as a business owner make the right call on crucial decisions. If you’re reviewing your current product range, management accountancy will provide your with all the financial and business-crucial statistics to help you decide exactly which products are profitable, which aren’t, and how to remedy that. If you’re looking to launch new products, management accounting is even more important. It can support at every stage, from initial planning right through to execution, by giving a detailed breakdown of production capabilities, as well as an accurate picture of the market as a whole. Also, staffing is another area in which management accounting can be hugely valuable. Decisions around hiring new staff and setting wages can be a real headache. Management accountants can help you make the right decision by letting you know exactly how much you can afford to spend on staffing, and the returns you can expect for your investment in personnel. Management accounting will be critical in decisions concerning what you keep in-house, and what you outsource. Getting the balance right between the two is very important, and having the data to inform decisions is a great way to help navigate these tricky choices.
Boyd, K., (2019, January 30). What management accounting and why is it important for business? Retrieved from
https://www.myob.com/au/blog/management-accounting-important-business/