Vid # 3 BUSINESS MANAGEMENT ACCOUNTING Module 2 Part 1
Summary
TLDRThe video script emphasizes the evolving role of management accounting in today's dynamic business environment. It highlights the importance of analyzing economic, social, political, technological, and environmental factors to support strategic decision-making. The script discusses the expansion of management accounting beyond financial reporting and cost management to include strategic planning, performance management, risk management, sustainability reporting, and leveraging digital transformation. It also touches on contemporary management techniques like Agile, Lean, Six Sigma, and Knowledge Management, and the impact of technology, globalization, and new business models on the field.
Takeaways
- đ Management accounting is essential for organizations to navigate the business environment and make informed decisions, considering economic, social, political, technological, and environmental factors.
- đ A key role of management accounting is to provide financial information and analysis to support strategic decision-making, including market trend analysis, demand and supply forecasting, and financial scenario evaluation.
- đ° Management accountants help identify opportunities for growth and the necessary investments to capitalize on them, focusing on profitability and financial impact assessment.
- đ Cost management is critical in a competitive environment, where management accountants analyze cost behavior, implement cost reduction strategies, and monitor performance to control costs effectively.
- đĄïž Management accounting plays a role in risk management, identifying, assessing, and implementing strategies to ensure risks are effectively managed, including the analysis of internal controls and business processes.
- đ The role of management accounting is evolving due to technology, globalization, and changing business models, requiring a broader and more strategic approach.
- đ The script highlights the expansion of management accounting into areas such as strategic planning, performance management, sustainability reporting, and leveraging digital transformation for improved operations.
- đ Agile, lean, and Six Sigma are among the contemporary management techniques that management accountants can use to improve organizational efficiency and quality.
- đ Management accountants are increasingly seen as strategic partners, providing insights to senior management and being involved in decision-making processes.
- đ Globalization has led to new challenges for management accountants, who must understand different accounting standards, tax regulations, and cultural norms across countries.
- đïž Ethics and transparency are crucial for management accountants, who are expected to operate with high ethical standards and ensure financial reporting transparency to stakeholders.
Q & A
What is the essential function of management accounting in an organization?
-Management accounting is an essential function of any organization that plays a crucial role in analyzing and interpreting various factors impacting an organization's operations and performance, helping to make informed decisions and remain competitive.
What factors does the business environment include that can impact an organization's operations and performance?
-The business environment includes a wide range of factors such as economic, social, political, technological, and environmental factors that can influence an organization's operations and performance.
How does management accounting support strategic decision making?
-Management accounting supports strategic decision making by providing financial information and analysis, which includes analyzing market trends, forecasting demand and supply, and evaluating the financial impact of different scenarios.
What is the role of management accountants in cost management?
-Management accountants play a vital role in cost management by helping organizations identify and manage costs effectively. This involves analyzing cost behavior, implementing cost reduction strategies, and monitoring performance to ensure costs are under control.
How does management accounting assist in risk management within a business environment?
-Management accounting assists in risk management by identifying and assessing potential risks, implementing risk management strategies, and monitoring performance to ensure risks are effectively managed.
What is the impact of technology on the role of management accounting?
-Technology has expanded the role of management accounting, allowing it to play a broader and more strategic role in organizations. This includes leveraging digital technologies to improve operations, develop data analytics capabilities, and ensure data security.
How can management accounting contribute to sustainability reporting?
-Management accounting can contribute to sustainability reporting by integrating sustainability considerations into decision-making processes, developing environmental and social metrics, and establishing reporting frameworks to analyze and report on sustainability performance.
What are some contemporary management techniques mentioned in the script?
-Some contemporary management techniques mentioned include agile management, lean management, Six Sigma, total quality management (TQM), performance management, digital transformation, and knowledge management.
How is the role of management accounting changing due to globalization?
-The role of management accounting is changing due to globalization as accountants must understand different accounting standards, tax regulations, and cultural norms to operate effectively in different countries.
What are the expectations from management accountants regarding ethics and transparency?
-Management accountants are expected to operate with the highest ethical standards and ensure transparency in financial reporting, which includes complying with regulatory requirements and disclosing all relevant financial information to stakeholders.
How are new business models affecting the role of management accountants?
-New business models, such as the sharing economy and subscription-based services, are creating new challenges for management accountants. They must now track revenue and expenses in non-traditional ways and adjust financial models to accommodate new revenue streams.
Outlines
đ Management Accounting in Business Environment
This paragraph discusses the critical role of management accounting in the modern business environment. It emphasizes how management accountants analyze various factors like economic, social, political, technological, and environmental influences on an organization's performance. The summary highlights the provision of financial information and analysis to support strategic decision-making, including market trend analysis, demand and supply forecasting, and financial impact evaluation of different scenarios. It also touches on cost management, risk management, and the importance of adapting to the business environment for competitive advantage and long-term success.
đ Expanding the Role of Management Accounting
The role of management accounting has evolved beyond traditional financial reporting and cost management. This paragraph explores how technology enables management accounting to play a broader and more strategic role. It outlines the ways in which management accounting can contribute to strategic planning, performance management, risk management, and sustainability reporting. The summary underscores the importance of adapting to technological advancements and integrating sustainability considerations into decision-making processes, while also leveraging data analytics to improve business operations and performance.
đ Digital Transformation and Modern Management Techniques
This paragraph delves into the impact of digital transformation on management accounting and the integration of contemporary management techniques. It discusses the use of data analytics, cloud solutions, and ensuring data security to improve operations. The summary highlights the potential benefits and risks of digital technologies, the importance of agile management, lean management, Six Sigma, and Total Quality Management (TQM) in enhancing organizational efficiency and quality. It also touches on the conservative attitude towards digital transformation and the need for management accountants to adapt to these changes.
đ The Changing Landscape of Management Accounting
The role of management accounting is constantly evolving due to technological advancements, globalization, and changing business models. This paragraph examines how these factors are reshaping the profession. The summary points out the increasing use of automation, big data analytics, and artificial intelligence in management accounting, as well as the challenges posed by globalization, such as understanding different accounting standards and cultural norms. It also discusses the emergence of new business models and the strategic role of management accountants as partners in decision-making processes.
đ Globalization and Ethics in Management Accounting
This paragraph focuses on the challenges and expectations of management accountants in the context of globalization and ethical standards. It discusses the need for management accountants to understand international markets, tax regulations, and cultural norms, as well as the rise of new business models that require tracking revenue and expenses in non-traditional ways. The summary emphasizes the strategic partnership role of management accountants, the importance of ethics and transparency in financial reporting, and the expectation to operate with the highest ethical standards and ensure compliance with regulatory requirements.
Mindmap
Keywords
đĄManagement Accounting
đĄBusiness Environment
đĄStrategic Decision Making
đĄCost Management
đĄRisk Management
đĄSustainability Reporting
đĄDigital Transformation
đĄAgile Management
đĄSix Sigma
đĄPerformance Management
đĄKnowledge Management
Highlights
Management accounting is essential for providing financial information and analysis to support strategic decision-making.
The business environment includes economic, social, political, technological, and environmental factors impacting organizations.
Management accountants need to analyze and interpret business environment factors to help organizations make informed decisions.
Key roles of management accounting include analyzing market trends, forecasting demand and supply, and evaluating financial impacts.
Cost management is crucial, and management accountants play a critical role in identifying and managing costs effectively.
Management accounting helps organizations identify opportunities for growth and necessary investments to capitalize on them.
Risk management involves identifying, assessing, and implementing strategies to manage risks in the business environment.
Management accounting plays a critical role in helping organizations remain competitive and achieve long-term success.
The role of management accounting has evolved beyond traditional financial reporting to include broader strategic roles.
Strategic planning in management accounting involves developing and implementing strategic plans with financial analysis.
Performance management helps organizations monitor and improve performance using financial and non-financial metrics.
Sustainability reporting integrates environmental and social metrics into decision-making processes.
Digital transformation leverages technologies to improve operations and performance, emphasizing data security.
Contemporary management techniques include agile management, lean management, Six Sigma, and total quality management.
The changing world of management accounting is driven by advancements in technology, globalization, and evolving business models.
Automation, big data analytics, and artificial intelligence are transforming management accounting practices.
Globalization requires management accountants to understand different accounting standards and cultural norms.
New business models like the sharing economy and subscription-based services present new challenges for tracking revenue and expenses.
Management accountants are now seen as strategic partners providing valuable insights for decision-making processes.
Ethics and transparency in financial reporting are increasingly important for management accountants.
Transcripts
good night guys we're now going to
discuss the management funding and the
business environment so we are now on
our module to
the management accounting is an
essential function of any organization
and its role has become increasingly
important in today's business
environment
the business environment includes a wide
range of factors that can impact an
organization's operations and
performance including economic social
political technological and
environmental factors as such the
management accountants need to be able
to analyze and interpret these factors
to help organizations make informed
decisions and remain competitive
one of the key roles of management
accounting is to provide financial
information and Analysis to support
strategic decision making this includes
analyzing market trends forecasting
demand and supply and evaluating the
financial impact of different scenarios
basically Italian
management all the time to analyze
business markets
are analyzing market trends
forecasting demand and Supply some
demand and Supply production
to make it profitable and evaluating the
financial impact of different scenarios
at different
on different scenarios by understanding
the business environment management
accountants can help organizations
identify opportunities for girls and
meet the necessary Investments to
capitalize on them
another important aspect of management
accounting in the business environment
is cost management
so with increasing competition and
pressure to reduce cost management
accountants play a vital and critical
role in helping organizations identify
and manage costs effectively
this includes analyzing cost Behavior
implementing cost reduction strategies
and monitoring performed performance to
ensure that costs are under control
management accounting is more on
maximizing profit and reducing costs
[Music]
um
for additional profit or it minimize
in addition management accounting can
help organization manage risk in the
business environment
this includes identifying and assessing
risk implementing risk management
strategies and monitoring performance to
ensure that risks are being effectively
managed
so partner management accounting I
this assessment business
it's just like
uh venturing into a business it is a
first step to do this is
with the increasing complexity of the
business environment risk management has
become an essential function of
management accounting overall management
accounting plays a critical role in
helping organizations navigate the
business environment by providing
financial information and Analysis
managing costs effectively and managing
risk management accountants can help
organization remain competitive and
Achieve long-term success
foreign
thank you
the role of management accounting has
evolved over the years and there has
been a growing recognition of the need
to expand its role beyond the
traditional focus on financial reporting
and cost management
management accounting because of the
technology
technology
Technologies around
in today's business environment
management accounting can play a broader
and more strategic role in helping
organizations achieve their objectives
and enhance their competitiveness
so here are some ways in which the role
of management accounting can be expanded
strategic planning management accounting
can help organizations develop and
Implement their strategic Plans by
providing financial analysis and
insights that help in that help
inform decision making
Dawn
this includes analyzing market trends
identifying growth opportunities and
evaluating Financial impact of different
strategic options
market trends
um
ordinary
then we have the performance management
management accounting can help
organizations Monitor and improve their
performance by developing the
performance indicators and using data
analytics to track progress and identify
areas for improvement
this includes analyzing financial and
non-finance financial metrics such as
customer satisfaction and employee
engagement to help organizations achieve
their objectives risk management
management accounting can help
organization manage Risk by identifying
and assessing potential risks developing
risk management strategies and
monitoring performance to ensure that
risks are being effectively managed this
includes analyzing internal controls
evaluating business processes and
identifying opportunities to improve
management practices to visit some
risk management
evaluating business processes
Optimum business processes
[Music]
means to improve processes on the next
discussion
agile
Six Sigma yeah
businesses
so that it can minimize those and
increase bracket so um
sustainability reporting that is
a sustainability reports
sustainability reporting but having
handled this management accounting now
in Indiana
sustainability reporting so so
sustainability reporting management
accounting can help organizations
integrate sustainability consideration
into their decision-making processes by
developing environmental and social
metrics and Reporting Frameworks this
includes analyzing the environmental and
social impacts of organizational
activities identifying opportunities to
reduce negative impacts and Reporting on
sustainability performance
I
um
environmental and social impacts
environment at the same time
sustainability reporting Union
corporations
digital transformation management
accounting can help organizations
leverage digital Technologies to improve
their operations and performance by
developing data analytics capabilities
implementing cloud-based solution and
ensuring data security
this includes analyzing the potential
benefits and risk on digital
Technologies identifying opportunities
to improve business processes and
developing strategies to manage data
effectively so when it comes to
accounting as a more on data
preservation time because of the
historical costs no
Marvel
at the
at the speed and accuracy of
um digital technologies that are at the
same time women being
a certain conservative attitude towards
a future
um occurrences
and digital transformation new
conservative attitude
hard copies of
um evidences or Source documents
the role of management accounting has
the potential to be expanded Beyond
traditional financial reporting and cost
management to become a more strategic
and value-added while you're adding
function by leveraging its expertise in
financial analysis data analytics and
risk management management accounting
can help organizations achieve their
objectives and enhance their
competitiveness in today's rapidly
changing business environment
management techniques contemporary
management techniques another at present
among a technique
contemporary management techniques are
modern approaches used by managers to
effectively manage their organizations
and the current business environment
some of these techniques include agile
management this is a flexible and in
iterative approach to project management
that emphasize collaboration continuous
Improvement and rapid response to Cheers
lean management this technique focuses
on reducing waste and increasing
efficiency in all areas of the
organization from production to customer
service
Six Sigma this is a data-driven approach
to process Improvement that focuses on
reducing defects and improving quality
so the 16th month
s
[Music]
very intensive
driver research
knowledge because we have to collect
data when it comes to improving
processes Six Sigma always requires they
come
downtown management
counter quality management or tqm is a
comprehensive approach to Quality that
involves all employees in the
organization and focuses on continuous
Improvement Performance Management this
is technique in this technique involves
setting goals and objectives for
employees and tracking their
performances against these metrics to
ensure that they are meeting
expectations and contributing to the
organization's success examples
accomplishment report so many Target
every semester and then they are
accomplished
performance so
digital transformation this refers to
the use of technology to transform
business processes and improve
organizational efficiency
artificial intelligence transformation
Knowledge Management this technique
involves capturing and sharing knowledge
and expertise within the organization to
improve decision making and problem
solving so
that is Knowledge Management
the changing world of management
accountant
was a management appointment the world
of management accounting is constantly
changing due to advancement in
technology globalization and evolving
business models here are some of the
examples of how the role the management
accounting is changing
changes brought about my technology
changes brought about by globalization
because of the internet
limited Filipinos everything about
territoriality has become more and
academic learning territoriality
principles
because of the sovereignty of the state
for all other things these are
globalized now
or an evolving business models
business models
from from transaction from Source
document to the
um to the financial statements
about financial modeling
transactions documents financial
statement to conform in the current
trends and practices and then there will
be investment on that financial
statement even without Source documents
uh
you know
more on Research
Community
financial statement
historical course
foreign
having served the government for more
than 30 years and having uh getting
acquainted with different people
on different status in life
and
then my learning class and
as a mature citizen of this country and
as a mature learner are accounting not
um
so technology there are increasing use
of automation big data analytics and
artificial intelligence is transforming
the way management accountants work they
are now able to analyze large volumes of
data quickly and accurately and more
informed decisions I'm using Ai and then
you know
is tendency structure very young
knowledge history
[Music]
okay globalization
the growth of uh International markets
have led to increased competition which
has created new challenges for
management accountants they must Now
understand different Accounting
Standards tax regulation and cultural
norms in order to operate effectively in
different countries
foreign
[Music]
foreign
the rise of new business models such as
the sharing economy and
subscription-based services has created
new challenges for management
accountants they must now be able to
track revenue and expenses in
non-traditional ways and adjust
Financial models accommodate new revenue
streams
the Strategic role management
accountants are no longer seen as simply
number of branches as a strategic
partner as a strategic Partners who
provide valuable insights to Senior
Management they are increasingly
involved in decision-making processes
and are expected to be able to
communicate financial information to
non-financial stakeholders
ethics and transparency with increasing
scrutiny from stakeholders and the
public management abundance are expected
to operate with the highest ethical
standards and ensure transparency in
financial reporting this includes
complying with regulatory requirements
and disclosing all relevant financial
information to stakeholders
foreign
to the next topic which is the current
purpose of management accounting
God bless everyone wait for the next
video
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