Summary/Script

-(Good afternoon, everyone! We are group 1 and our topic to

discuss is all about Management accounting and the business
environment.)
-.(so guys, when we say management accounting it provides
information for internal users that is useful in making decisions,
ex. Managers so without managers, the business or organization
would really fail, why? )
-(Because they are the one who makes plans and objectives for
the business so they need information in order to achieve their
goals for the business. Then if naay for internal users na
information then naasab tay ginatawag for external users which
is the financial accounting. So we don’t need to further explain
that topic no we just give you some recap of what is Financial
accounting and management accounting.)
- (now let’s proceed to the expanding role of management
accounting.)
-(Management accounting is always evolving due to changes in
the business environment. When we say business environment,
it is a component that affects the business; it could be internal or
external factors. Therefore, The business environment never
rests because it is continuously changing.) in a simple word,
management accounting always ga evolve guys because of
continuously changing na business environment)
-this are the changes include in business environment nga nagpa
expand sa role of MA

Changes include in Business Environment: Expanding Role of

Management Accounting
1. Increase in global competition
 - (when we say Global competition guys it is when
companies compete to sell goods and services on an
international scale so Because of the changes in the
business environment Global competition becomes a
form of international competition that’s why the higher
the level of development of the factors, the more stable
and viable it is in the face of a constantly emerging and
changing business environment. So diba most of the
companies want to be on top so in order to get there
they should compete with other competitors para ma
achieve ilang goal na ma top company and mas maka
gain silag more customer.)
2. Advances in manufacturing technologies
- (Through the advance technology mas mapadali ang
process sa pag manufacture sa product sa company
therefore, Technological advancements can allow
manufacturers to create higher quality goods faster
than before, with less expense and help them realize
more efficient operations to become more competitive.)
3. Advances in information technologies, internet and
e-commerce
- ( Nowadays no, daghan najd ang pwede mabuhat with
the use of information technologies upkors with
internet for example you are a E-commerce,
e-commerce guys mao ni sila tong mga sellers nga
gabaligya online so with the use of internet then pwede
nmo eh post lng imong products,services and
information then the customer can easily contact u
with the use of internet. So mas gipadali jd ang flow sa
business no because of changes in business
environment.)
4. Greater focus on the customer
 - (So with the changes of business environment mas
gipalalim jd ang relationship no between customer and
business because If you don’t want your customers to
look for other options, then be in a long-term
relationship with them so dilang tao-tao ang pwede
maka build ug relationship no pwede sab ang
tao-business because the success sa isa ka company
is ga depend jd sya on the capacity of the business to
gain more customer kay unsa may pulos sailang
pagtukod ug company if wa diay silay target na
customers diba?Therefore, in business philosophy it
says that always keep your customers above all your
business decisions. )
5. New forms of management organization
- (when we say management organization guys it is The
process of organizing, planning, leading and
controlling the resources within an entity or
management nga ga aim gihapon ug objective or goals
para ma achieve for the business. So with the changes
of business environment maka himo jd silag new
management organization if ever dli effective ilahang
gibuhat para sa business so that is why apil jd sya as
changes.)
6. Changes in the social, political and cultural environment of
business
- (as time goes by, business environment is changing
continuously therefore, it is not new if there are
changes in social, political and cultural environment of
the business)
-(so these are the six changes in business environment. As I said
earlier the expanding role of management accounting is evolving
because of continuous changes of the business environment)

-(Now let’s proceed with what corporate executives do.)

Corporate Executives - (mao ni sila tong mga executive

responsible for overseeing the financial operations of an
organization.) And they are now using cost data to chart successful
futures for their company. (when we say cost data guys it helps us
estimate the costs of resources such as personnel, supplies and
equipment associated with implementing a project, product,
service, or other activity.) The example of Corporate executives are
Ex. CEO-Chief Executive Officer, COO-Chief Operating Officer

(NOTE THAT)
“Adapting management accounting system better meet the
management needs for information”- (so it is very important jd
no that the organization must adapt management accounting
system in order to survive especially when competing to global
markets)

Automated environment management accountant- they use their

management control system to support and reinforce manufacturing
and other operating strategies. (so mas napadali ang role sa
management accountant if mas ma appreciate niya iyang role in
the organization to be more influencing rather than just to
inform.)

- (so mao to no the changes in the business environment have a

big impact on management accounting because the organization
or management have to transform themselves to become more
competitive in the global market.)

-(now let’s proceed to the contemporary management

techniques)

Contemporary Management Techniques

a. Just-in-Time(JIT)
- a philosophy that activities are undertaken only as needed
or demanded. (so familiar nmn mo aning JIT no it is an
inventory system that a company use to increase its
efficiency and decrease waste by receiving goods only
as they are needed so wajoy masayang na goods no
kay orderon ramn sya ASAP from the supplier if
needed lng jd or demanded by the customer. Also, kani
sab guys was initiated by Toyota Motor Corporation,
and throughout the years it has expanded to many
other manufacturing organizations throughout the
world. So gitry sa Toyota guys ang kani na approach
by controlling their inventory levels by relying on their
supply chain to deliver the raw materials it needed to
build their cars. Therefore, ang ilang parts or items na
gi order is mo arrived rajd sya just as they were
needed, not before or after.)
- Also known as Pull-it-through approach
- 4 Characteristics of JIT:
1. Elimination of all activities that do not add value to
product or service. (meaning iyang e-eliminate tong mga
butang na walay labot sa production maong iyang
definition when needed lang jd sya or demanded so
kung di sya need for production then dli sab dapat sya
orderon)
 2. Commitment to a high level of quality (so kay when
needed ramn jd sya guys then that part or items nga
ilang orderon from the supplier is very important for
the production right? in order for them to achieve their
goal na maka satisfied sa customers demand and that
commitment will result in a high level of quality.)
3. Commitment to continuous improvement in the
efficiency of an activity. (It is considered as one of the
characteristics of JIT guys because the Companies
must communicate the value and importance of
continuous improvement and pwede sab nila ni eh
build as an aspect of the business as a disciplined
strategy especially when dealing customers. So diba in
all aspect of our life mn jd no same with JIT is we
commit to continuous improvement because nobody is
perfect)
4. Emphasis a simplification and increased visibility to
identify activities that do not add value. (when we say
activities that do not add value mao ning mga activities
guys na wala nag provide ug any value to the product or
service and are not required for business operational
reasons. Common examples ani guys is searching for a
tool and reworking an application. and now let’s proceed
to the main benefits of JIT.)

Main Benefits of JIT:

1. Working capital position is improved ( when we say
working capital guys it can be positive or negative if positive
working capital ang current assets is ni exceed sa current
liabilities while ang negative Working capital is mas dako ang
liabilities kaysa sa asset. It is one of the main benefit of JIT guys
because by the recovery of funds that were tied up in inventories
working capital position is improved.)
2. Throughout time is reduced, resulting in greater
potential
Production and quicker response to customers (meaning
Reducing production time allows companies to increase
production during periods of high demand.)
3. Areas previously used to store inventories are released
and made available for other more productive users (so masabtan
ramn sya no and our last main benefit of JIT is )
4. Lesser waste and more customer satisfaction are
achieved (yes it’s true as The goal of JIT is to eliminate waste
and increase the efficiency of the operations in order to make the
customer satisfied.)

-(the more detailed discussion of JIT system is found in Chapter

26)

(now let’s proceed to Total Quality management)

B. Total Quality Management( diba familiar naman mo ani no coz

it is one our subject diba?
- A technique in which management develops policies and
practices to ensure firms products and services exceed
customers satisfaction. (meaning it aims to improve the overall
quality of products and services in an organization. It
emphasizes a customer-centric approach, employee
involvement, continuous improvement, and a holistic view of
quality.)
- It is a formal effort to improve quality throughout an
organization’s value chain. (para maka survive ang
organization or firm sa increasing competitive environment,
 TQM is a must jd in a company to ensure that their products
are of a high quality.)

Two Major Characteristics of TQM:

1. Focus on serving customers
(ofcourse you need to understand and meet the customer
needs and expectations in which mao sab ni ang main core
of TQM right?. It involves gathering customer feedback and
use it as a step for improvements.)
2. Systematic problem-solving using teams
(diba Employees are considered an integral part of the
quality improvement process. Therefore, They are
encouraged to contribute ideas and participate in
decision-making.)

- (Detailed discussion of TQM is found on chapter 26)

- (Now let’s proceed to Process Reengineering)

C. Process Reengineering

(first we will defined what is reengineering ,well a reengineering)

Reengineering- A process for creating competitive advantage

- Defined as the “Fundamental rethinking and radical
redesign of business processes”
(in a simple definition reengineering is the redesign of business
processes to achieve a dramatic improvement in business
performance)

-(and now for process reengineering)

 Process Reengineering - a more radical approach to improvement
than TQM.
(yes it is true because process reengineering is not about slow
and steady improvement but it's about radical, dramatic changes
to the framework and culture of a business. Rather than
improving what's already there, process reengineering starts
from the beginning and builds an entirely new process in order to
eliminate the unnecessary steps and to reduce errors and costs.)

(for the continuation of the process reengineering my groupmate

Shaina will further discuss this topic)