Managerial

Accounting
Beatrice Leustean
 The added value chain and assets’ role in
creating value
 Data’s sources
 The assets and their role in creating value
 Economic functions that create value
 Three work techniques in order to assist managers
 Data mining
 Financial Annual Statement
 The Balance-Sheets
 The Income Statement
 Other internal sources: clients, vendors, resellers, providers, employees
 Market reliable sources
 Macroeconomic data
 Assets
 Current assets = Current assets are made up of liquidity (money-monetary assets) or
assets that will normally be converted into liquidity in a period of less than one year.
Current assets include money- monetary assets, customer receivables and stocks.
 Productive assets = Productive fixed assets are assets held for more than one year
and used to produce goods and services for clients.
 Tangible fixed assets
 Intangible fixed assets
 Intangible assets = Intangible assets are assets such as patents and trademarks.
 What is the difference between planning and
control
 Planning includes:
 a) choosing the objectives of the organization, predicting the results of different alternative ways of
achieving these objectives, making the decision on how the desired objectives will be achieved and
 b) communicating objectives and how to achieve them across the hole organization.
 The budget
 Controlling includes:
 a) undertaking actions to implement planning decisions and
 b) choosing how performance and information will be evaluated to support future decision-making.
 Planning and controlling
 Planning and control are correlated by what we call feedback (or retroactive
analysis). In a retrospective analysis, managers examine historical performance
(control function) and systematically explore alternative ways to make decisions
and draw up better-founded plans in the future.
 Retroactive analysis: the link between
planning and controlling
 Planning and control are correlated by what we call feedback (or retroactive
analysis). In a retrospective analysis, managers examine historical performance
(control function) and systematically explore alternative ways to make decisions
and draw up better-founded plans in the future.
How accountants facilitate planning and control at Daily News
Example of managerial
decision at DN
PLANNING = increase advertising charges
by 4%
CONTROL Action = the implementation
of a 4% increase in advertising charges
The performance evaluation and
retroactive analysis = the advertising
revenues are 7,2% below the budget level
Management accounting
system Performance reports
Budgets = forecasts on the number of Comparing the number of advertising
advertising pages produced, on-page rates pages planned to the registered as being
and advertising revenue sold ones, the average rates per page and
advertising revenue with the levels
Supporting documents (invoices sent to
stipulated in the budget
advertisers, indicating the number of pages
sold, the rates per page, as well as the total
payments collected)
Registration in synthetic and analytical
accounts
 ROLES OF MANAGING ACCOUNTANTS in
problem solving analysis for decision-making purposes

Focusing attention to
Taking evidence Reporting results certain issues
 The four themes for success
 The focus on the customer
 The analysis of the value chain and supply
 The key factors of success
 The continuous improvement and evaluation by benchmark indicators
 The focus on customer
 The number of organizations that set their goal "customer-oriented activity" is large
and growing. The main challenge facing managers is to continue to invest
corresponding resources in ensuring customer satisfaction, so that the company can
attract and retain the customers who contribute the most to its profits.
 2. The analysis of the value chain and
supply chain
 The term “value chain” refers to the succession of economic functions that add
utility to the products or services of a company. The term ”value” refers to the
increase in the utility of a product or service and, as a result, its value to the
customer.
 The term supply chain describes the flow of goods, services and information from
initial sources of raw materials and services to delivery of finished products to
customers, regardless of whether the corresponding activities are carried out in the
same organization or in different organizations.