Kế toán - Kiểm toán - Chapter 18: Information for tactical decisions

Nội dung text: Kế toán - Kiểm toán - Chapter 18: Information for tactical decisions

1. Chapter 18 Information for tactical decisions Copyright  2003 McGraw-Hill Australia Pty Ltd, PPTs t/a Management Accounting: An Australian Perspective 3/e by Langfield-Smith, Thorne & Hilton Slides prepared by Kim Langfield-Smith
2. The management accountant’s role in decision making s To provide relevant information to managers and team who make the decisions s Types of decisions ÙAccept or reject a special offer ÙMake or buy (or outsource) a product or service ÙAdd or delete a product, service or department ÙJoint products: sell or process further Copyright  2003 McGraw-Hill Australia Pty Ltd, PPTs t/a Management Accounting: An 2 Australian Perspective 3/e by Langfield-Smith, Thorne & Hilton Slides prepared by Kim Langfield-Smith
3. Tactical versus long-term decisions s Tactical decisions ÙDo not require significant or permanent resource commitments ÙCan be revered if better opportunities arise s Long-term decisions ÙTend to be more strategic in nature ÙMay involve changes in capacity ÙMore difficult to reverse and effects may extend over longer time periods Copyright  2003 McGraw-Hill Australia Pty Ltd, PPTs t/a Management Accounting: An 3 Australian Perspective 3/e by Langfield-Smith, Thorne & Hilton Slides prepared by Kim Langfield-Smith
4. A model of the decision- making process s Clarify the problem s Identify alternative courses of action s Collect relevant cost and benefits s Compare the cost and benefits of each possible course of action s Select a course of action Copyright  2003 McGraw-Hill Australia Pty Ltd, PPTs t/a Management Accounting: An 4 Australian Perspective 3/e by Langfield-Smith, Thorne & Hilton Slides prepared by Kim Langfield-Smith
5. Copyright  2003 McGraw-Hill Australia Pty Ltd, PPTs t/a Management Accounting: An 5 Australian Perspective 3/e by Langfield-Smith, Thorne & Hilton Slides prepared by Kim Langfield-Smith
6. Determining relevant information s Relevant information ÙDiffers under competing courses of action ÙRelate to the future ÙIs timely ÙCan be qualitative or quantitative Copyright  2003 McGraw-Hill Australia Pty Ltd, PPTs t/a Management Accounting: An 6 Australian Perspective 3/e by Langfield-Smith, Thorne & Hilton Slides prepared by Kim Langfield-Smith
7. Characteristics of relevant information s Different under competing courses of action ÙOpportunity costs may be relevant vThe potential benefit given up when one alternative is chosen over another s Relates to the future ÙSunk costs are ignored vCosts that have already been incurred and are irrelevant to any future decisions ÙPrediction of future costs may be based on past data continued Copyright  2003 McGraw-Hill Australia Pty Ltd, PPTs t/a Management Accounting: An 7 Australian Perspective 3/e by Langfield-Smith, Thorne & Hilton Slides prepared by Kim Langfield-Smith
8. Characteristics of relevant information s Timeliness versus accuracy ÙTimelines I information available in time to be used in the decision-making process ÙAs accuracy increases timeliness may decrease s Quantitative or qualitative ÙQuantitative information can be expressed in numeric terms, such as dollars ÙQualitative information cannot be expressed easily in numerical terms Copyright  2003 McGraw-Hill Australia Pty Ltd, PPTs t/a Management Accounting: An 8 Australian Perspective 3/e by Langfield-Smith, Thorne & Hilton Slides prepared by Kim Langfield-Smith
9. Providing only relevant information s Generating information is a costly process s Supplying irrelevant data can result in a waste of managerial resources s Information overload decreases the effectiveness of decision-making Copyright  2003 McGraw-Hill Australia Pty Ltd, PPTs t/a Management Accounting: An 9 Australian Perspective 3/e by Langfield-Smith, Thorne & Hilton Slides prepared by Kim Langfield-Smith
10. Information for unique versus repetitive decisions s Unique decisions ÙArise infrequently or only once ÙRelevant information will often be found both inside and outside the organisation ÙRelevant information is harder to generate s Repetitive decisions ÙMade at regular or irregular intervals ÙMay draw on a large amount of historical data ÙRelevant information is readily available Copyright  2003 McGraw-Hill Australia Pty Ltd, PPTs t/a Management Accounting: An 10 Australian Perspective 3/e by Langfield-Smith, Thorne & Hilton Slides prepared by Kim Langfield-Smith
11. Information for decisions: terminology s Incremental revenue ÙThe additional revenue that will be gained as a result of choosing one alternative over another s Incremental costs ÙThe additional costs that arise from choosing an alternative continued Copyright  2003 McGraw-Hill Australia Pty Ltd, PPTs t/a Management Accounting: An 11 Australian Perspective 3/e by Langfield-Smith, Thorne & Hilton Slides prepared by Kim Langfield-Smith
12. Information for decisions: terminology s Avoidable costs ÙCosts that will not be incurred in the future if a particular decision is made s Unavoidable costs ÙCosts that will continue to be incurred no matter which decision alternative is chosen ÙIrrelevant to the decision Copyright  2003 McGraw-Hill Australia Pty Ltd, PPTs t/a Management Accounting: An 12 Australian Perspective 3/e by Langfield-Smith, Thorne & Hilton Slides prepared by Kim Langfield-Smith
13. Accept or reject a special order s Whether or not to supply a customer with a single, one-off order for goods or services, at a special price s Excess capacity ÙWhere equipment, labour or other inputs to production that are not being utilised and hence are available for other purposes continued Copyright  2003 McGraw-Hill Australia Pty Ltd, PPTs t/a Management Accounting: An 13 Australian Perspective 3/e by Langfield-Smith, Thorne & Hilton Slides prepared by Kim Langfield-Smith
14. Accept or reject a special order s Excess capacity ÙIf incremental revenues > incremental costs, acceptable on financial grounds ÙAllocated fixed costs should not be included ÙNo alternative uses for resources needed to fill the order continued Copyright  2003 McGraw-Hill Australia Pty Ltd, PPTs t/a Management Accounting: An 14 Australian Perspective 3/e by Langfield-Smith, Thorne & Hilton Slides prepared by Kim Langfield-Smith
15. continued Copyright  2003 McGraw-Hill Australia Pty Ltd, PPTs t/a Management Accounting: An 15 Australian Perspective 3/e by Langfield-Smith, Thorne & Hilton Slides prepared by Kim Langfield-Smith
16. Accept or reject a special order s No excess capacity Ù Include opportunity costs associated with use of the capacity s Qualitative factors ÙWhether the decision to accept the special order will impact on regular business ÙIf the decision is not a one-off decision wider consideration need to be taken into account Copyright  2003 McGraw-Hill Australia Pty Ltd, PPTs t/a Management Accounting: An 16 Australian Perspective 3/e by Langfield-Smith, Thorne & Hilton Slides prepared by Kim Langfield-Smith
17. Copyright  2003 McGraw-Hill Australia Pty Ltd, PPTs t/a Management Accounting: An 17 Australian Perspective 3/e by Langfield-Smith, Thorne & Hilton Slides prepared by Kim Langfield-Smith
18. Make or buy a product s Whether to produce particular goods or services, or purchase them from an external supplier s Consider ÙAvoidable costs versus unavoidable costs ÙIncremental costs and opportunity costs Copyright  2003 McGraw-Hill Australia Pty Ltd, PPTs t/a Management Accounting: An 18 Australian Perspective 3/e by Langfield-Smith, Thorne & Hilton Slides prepared by Kim Langfield-Smith
19. Copyright  2003 McGraw-Hill Australia Pty Ltd, PPTs t/a Management Accounting: An 19 Australian Perspective 3/e by Langfield-Smith, Thorne & Hilton Slides prepared by Kim Langfield-Smith
20. Copyright  2003 McGraw-Hill Australia Pty Ltd, PPTs t/a Management Accounting: An 20 Australian Perspective 3/e by Langfield-Smith, Thorne & Hilton Slides prepared by Kim Langfield-Smith
21. Make or buy a product s Qualitative and strategic issues ÙQuality of the product ÙDelivery responsiveness of supplier ÙTechnical capabilities of the supplier ÙLabour relations at the supplier ÙFinancial stability of the supplier ÙAbility of the supplier to respect confidential information Copyright  2003 McGraw-Hill Australia Pty Ltd, PPTs t/a Management Accounting: An 21 Australian Perspective 3/e by Langfield-Smith, Thorne & Hilton Slides prepared by Kim Langfield-Smith
22. Outsourcing decisions s Part of a manufacturing process, or another function normally undertaken within an organisation, is contracted to an outside business s More long-term than make or buy decision s Difficult to reverse Copyright  2003 McGraw-Hill Australia Pty Ltd, PPTs t/a Management Accounting: An 22 Australian Perspective 3/e by Langfield-Smith, Thorne & Hilton Slides prepared by Kim Langfield-Smith
23. Add or delete a product or department s Involves considering which costs and benefits will change if the decision is taken s Entails long-term implications s Conventional accounting data should be treated with care s Qualitative and strategic issues ÙDeleting a department raises morale concerns ÙStrategic implications Copyright  2003 McGraw-Hill Australia Pty Ltd, PPTs t/a Management Accounting: An 23 Australian Perspective 3/e by Langfield-Smith, Thorne & Hilton Slides prepared by Kim Langfield-Smith
24. Copyright  2003 McGraw-Hill Australia Pty Ltd, PPTs t/a Management Accounting: An 24 Australian Perspective 3/e by Langfield-Smith, Thorne & Hilton Slides prepared by Kim Langfield-Smith
25. Joint products: sell or process further s Joint products ÙTwo or more products produced simultaneously from the one production process ÙCannot be separated prior to split-off s Split-off point ÙThe stage in the production process where the joint products are identifiable as separate products continued Copyright  2003 McGraw-Hill Australia Pty Ltd, PPTs t/a Management Accounting: An 25 Australian Perspective 3/e by Langfield-Smith, Thorne & Hilton Slides prepared by Kim Langfield-Smith
26. Joint products: sell or process further s Joint cost ÙAll manufacturing costs incurred in the production of joint products s Relative sales method ÙAllocates joint cost to joint products in proportion to their sales value at the split-off point Copyright  2003 McGraw-Hill Australia Pty Ltd, PPTs t/a Management Accounting: An 26 Australian Perspective 3/e by Langfield-Smith, Thorne & Hilton Slides prepared by Kim Langfield-Smith
27. Implications of ABC analysis for decisions s Identification of relevant costs, incremental costs, opportunity costs, sunk costs and avoidable costs do not change s Costs more accurately assigned to products or departments s Leads to identification of precise cost implications of various decision alternatives Copyright  2003 McGraw-Hill Australia Pty Ltd, PPTs t/a Management Accounting: An 27 Australian Perspective 3/e by Langfield-Smith, Thorne & Hilton Slides prepared by Kim Langfield-Smith
28. Copyright  2003 McGraw-Hill Australia Pty Ltd, PPTs t/a Management Accounting: An 28 Australian Perspective 3/e by Langfield-Smith, Thorne & Hilton Slides prepared by Kim Langfield-Smith
29. Incentives for decision makers s Managers typically make decisions that will maximise their reported performance and rewards s Cost systems may be explicitly designed to encourage certain biases in decisions making s To encourage managers and employees to make certain decisions, systems must be designed with incentives Copyright  2003 McGraw-Hill Australia Pty Ltd, PPTs t/a Management Accounting: An 29 Australian Perspective 3/e by Langfield-Smith, Thorne & Hilton Slides prepared by Kim Langfield-Smith
30. Pitfalls to avoid s Ignore sunk costs s Beware of unitised fixed costs in decision making s Beware of allocated fixed costs; identify the avoidable costs s Pay special attention to identifying and including opportunity costs in a decision analysis Copyright  2003 McGraw-Hill Australia Pty Ltd, PPTs t/a Management Accounting: An 30 Australian Perspective 3/e by Langfield-Smith, Thorne & Hilton Slides prepared by Kim Langfield-Smith