Monday, May 9, 2016

May Second Week - IE Knowledge Revision

Second Week 8 May to 12 May 2016

Managerial Accounting or Management Accounting - Review Notes
Relevant Information and Decision Making - Marketing Decisions

Relevant Information and Decision Making - Production
Relevant Information and Decision Making - HR

The Master Budget - Accounting Information
Flexible Budgets and Variance Analysis - Review Notes

Responsibility Accounting for Management Control
Accounting Information for Management Control in Divisionalized Companies

Capital Budgeting - Accounting and Cost Information

Introduction to Organizational Behavior

Relation between Industrial Engineering and Management Accounting

This week's subject of revision is management accounting. Management accounting provides accounting based data/information to managers for use in decision making models. One example is determining economic order quantities. Estimates of ordering cost, set up cost, and inventory carrying are provided by management accountants. Industrial engineers may also use number of accounting measures in optimization studies. They have to get data for these models from management accountants. Management accountants may not know details of these accounting measures initially and industrial engineers have to explain the composition of these measures to accountants. They have to get the data for measures,use them in the models and subsequently validate them, so that in future accountant provide these measures on a routine basis to decision makers.

Budgets are important for industrial engineers. They have to make sure that results of productivity projects carried by them in the last year are captured in the coming year budgets. Then only deviations from the budgeted results can be analyzed for deviations from standard practices prescribed by industrial engineering departments for improved efficiency or productivity.

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