ACCT1501 Lecture Notes - Lecture 11: Customer Relationship Management, Total Quality Management, Management Accounting
18 May 2018
School
Department
Course
Professor
Wednesday, 17 May 2017
Accounting & Financial Management 1A
Introduction to Management Accounting
-Area of accounting concerned with provision of info to all levels of management
-Assisting management to carry out functions:
•Planning, directing, motivating & controlling responsibilities
-Key focus - adding value to the organisation
-Management Accounting System (MAS):
•Quality Management Approaches
(i) Total Quality Management (TQM)
•Comprehensive management philosophy
•Focus not just on defective products
•Aim for continuous improvement
•Plan Do Check Act
(ii) Just-in-Time (JIT)
1. Receive customer Orders
2. Schedule production
3. Receive materials just in time for production
4. Complete parts just in time for assembly
5. Complete products just in time to ship to customer
•‘Pull’ instead of ‘push’ approach
•Key Elements: Flexible workforce, reduced set-up times, reliable suppliers,
improved plant layout, aim for zero defect
•Benefits: Reduced inventory costs, less warehouse space, greater customer
satisfaction, higher quality products & reduced rework costs
(iii) Customer Relationship Management (CRM)
•Why are they buying products/services (price, product quality, service quality)?
•Managing customers - customer satisfaction surveys
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Document Summary
Area of accounting concerned with provision of info to all levels of management. Assisting management to carry out functions: planning, directing, motivating & controlling responsibilities. Key focus - adding value to the organisation. Basic cost concepts: cost - value sacri ced for goods & services that are expected to bring a current or future bene t (e. g. revenue) to the organisation. Expire as used up in production (become expenses) Functional classi cation of cost: period costs - expensed in period in which they are incurred, associated with a speci c time period. Expensed & deducted from revenue in that period. All selling & administrative costs - period related (e. g. sales commission) Wednesday, 17 may 2017: product cost - cost of producing a product. I. e. dm + dl + oh (manufacturing cost) Manufacturing costs that are inventoried & later expensed at cogs. Portion of costs assigned to products sold during a period appears as cogs expenses (expired costs)
