Managerial Accounting

Strategy is a set of complicated tactics formulated by the executives of a company directed towards the achievement of company’s goal (Salmela, 2002). It is about all the path ways that a company would follow to reach its ultimate goal. It is a company’s strategy which helps to identify what it does better than the other companies in the industries, which may be different from what it does best. For successful strategy formulation and implementation, a company should know the needs of customers and should have knowledge of its competitors. Through a good strategy a company would identify that opportunity which makes it different from the others (Thompson, 2005).

Strategy: an organizations long term course of action designed to deliver a unique customer experience while achieving its goals.

A financial report that summarizes the amounts and types of costs that were incurred in the manufacturing process during the period is a: Manufacturing statement.

BUS 322.D1 – FALL 2012 INTERMEDIATE MANAGERIAL ACCOUNTING Tuesday, 11:30-14:20 (BLU 10021) Instructor Office Phone Email : : : : Tota Panggabean, BSc., MSF., MSEc. WMC 3353 (778)782.3563 tpanggab@sfu.ca Office hours : M 10.00-12.00 W 10.00-14.30 Or by appointment Toan Le WMC 3381 M: 14.00-15.30

The following data were taken from the records of Clarkson Company for the fiscal year ended June 30, 2014.

Strategy is about which product or services should be produced and offered to which markets and which the customer needs and wants are met whilst achieving the objectives of the organization while making a profit – how each business aim to achieve its mission within its selected area of activity.

8. A consumer values a car at $30,000 and it cost a producer $20,000 to make the

Company operates in the Industrial Sector – Services, and Industry – Regional Airlines. According to the Standard Industrial Classification System (SIC), company belongs to the industry group 451: Air

A competitive strategy is a plan of action that a company develops towards attaining a competitive advantage over its competitors in the industry. Companies examines and research their competitors strengthen and weaknesses and compare them to its own. A company strategy can incorporate efforts to please customers, ward off competitive threats, and meet a unique competitive advantage.

“Strategy can be thought of as a long term plan of action or execution designed to achieve particular objectives, such as achieving competitive advantage for an organisation. It reflects the values, expectations and goals of those who are in power within the organisation.” (RDI course material-Strategic Management module; Unit 1-Nature and scope of strategic management; Lesson 1-Nature)

“A strategy is something like, an innovative new product; globalization, taking your products around the world; be the low-cost producer. A strategy is something you can touch; you can motivate people with; be number one and number two in every business. You can energize people around the message .” Jack Welch

Accounting is a way of measuring a business 's financial performance through maintaining records and analyzing them. Financial accounting system produces reports that are generally intended for external stakeholders to evaluate a business. Management accounting is used to provide internal information that management uses in order to assess performance toward goals and objectives.

The Plan-Do-Check-Act (PDCA) Cycle is a systematic, fact-based approach to continuous improvement. Exhibit 1 in the text illustrates the PDCA Cycle.

A strategy is said to be a plan that is made for the long term success of a product or brand. It is extremely important to have a strategy in order to figure out a direction towards which any company is able to focus all its resources efficiently and achieve desired outcomes. Formulating effective strategies is a considerably long process in itself that combines analysing several factors, situations and issues that are already present in a company and looking to improve on them alongside trying to implement various innovations and ideas to collectively create a direction towards which they can move and direct the resources available to them.

But it is impossible to sustain competitiveness without an more accurate cost calculation mechanism. (Ozbayrak, Akgun and Turker, 2004) As an alternative method to take the place of traditional cost accounting methods, ABC assigns costs to several activities with multiple cost drivers. (Copper and Kaplan, 1988) The costs of each product are based on each product’s use of these activities. Using multiple activities as cost drivers instead of single one, it can effectively reduce the risk of distortion and provides more accurate cost information. (Kim, Park and Kaiser, 1997)