p.1
Value Creation for Stakeholders
What is the primary focus of strategic management accounting?
Creating, managing, and protecting value for multiple stakeholders.
p.1
Value Creation for Stakeholders
What are the essential requirements for successful performance in organizations?
To generate products and services with value that consumers are willing to pay for and to constantly improve resources, activities, and processes.
p.1
Contemporary Skills Required for Management Accountants
What new skills must management accountants embrace?
Skills that extend beyond traditional practices, including collaboration with general management and corporate strategists.
p.1
Impact of Technology on Management Accounting
How has technology impacted the role of management accountants?
It allows them to capture and process routine events, enabling more focus on understanding the external environment and complex decisions.
p.4
Value Creation for Stakeholders
What is essential for achieving long-term sustainable shareholder value?
Acknowledging and minimizing the impact on the natural environment.
p.10
Role of Management Accountants
What is an advantage of transferring routine tasks to other employees?
It allows time to be devoted to more complex, non-routine, and strategic-level tasks.
p.10
Challenges in Management Accounting
How do service industries differ from product manufacturing in management accounting?
Services are intangible, cannot be stored as inventory, and are unique offerings.
p.1
Challenges in Management Accounting
What challenges do management accountants face in contemporary organizations?
The need to broaden their role from traditional scorekeeping to business advisory positions.
p.14
Role of Management Accountants
What is one responsibility of management accountants as creators of value?
Developing plans and strategies that set the direction of the organisation.
p.10
Strategic Management Process
What does 'economy' refer to in the context of public sector performance?
The extent to which resources of a given quality were acquired at the lowest cost.
p.6
Strategic Management Process
How is the strategic management process characterized?
As a continuous process that evaluates the business environment and competitors.
p.4
Challenges in Management Accounting
What is the goal of CSR reporting?
To help people understand the sustainable value or effect of an organization’s activities from a social and environmental perspective.
p.7
Role of Management Accountants
What role do management accountants play in operational management?
They provide feedback with financial and non-financial information to support controlling functions.
p.12
Role of Management Accountants
What is the role of computer-aided design and manufacturing in management accounting?
They allow management accountants to focus on non-routine and strategic decisions.
p.4
Value Creation for Stakeholders
How is shareholder wealth generated?
As a by-product of generating value in other areas.
p.12
Analytical Techniques in Strategic Management
What are some techniques linked to strategic management accounting?
Target costing, life cycle costing, competitor cost analysis, activity-based costing, and strategic performance measurement systems.
p.5
Stakeholder Perspectives on Value
What social issues can arise from selling addictive products?
Increased health-related costs and social issues in communities.
p.9
Challenges in Management Accounting
What external issue affected Alpha's sales during the Christmas period?
Zeta Pty Ltd heavily discounted a similar toy, attracting market share away from Alpha.
p.3
Value Creation for Stakeholders
What was the basis of value creation in the past?
Economies of scale and mass production.
p.13
Contemporary Skills Required for Management Accountants
Why are many senior accounting roles left unfilled?
Potential employees often lack 'soft skills'.
p.5
Introduction to Strategic Management Accounting
What is the primary aim of strategic management accounting?
To improve organisational outcomes.
p.4
Strategic Management Process
What does the organizational value chain illustrate?
A sequence of activities performed by the organization to create customer value.
p.11
Challenges in Management Accounting
How have management accountants' roles changed due to globalization and digital transformation?
Their roles have expanded to include problem-solving and improving competitive positions.
p.10
Strategic Management Process
What is meant by 'effectiveness' in the context of strategic management accounting?
The extent to which an organization achieved its objectives.
p.9
Strategic Management Process
What decision did Alpha make to control the sales situation?
Reduce the selling price by 15% and increase advertising.
p.10
Strategic Management Process
What strategic objectives are highlighted in the local government planning document?
Strong leadership and healthy, inclusive communities.
p.9
Role of Management Accountants
How has the role of management accountants changed in organizations?
Tasks of collecting and communicating key performance information are often delegated to line managers and employees.
p.6
Strategic Management Process
Why is strategic analysis important?
It helps the organisation understand itself and its competitors.
p.12
Introduction to Strategic Management Accounting
What does the term 'strategic management accounting' refer to?
It captures the broader role of management accountants in assisting strategy formation and implementation.
p.7
Value Creation for Stakeholders
What is a key resource for contemporary organizations like Google and Apple?
Intellectual property (IP).
p.5
Analytical Techniques in Strategic Management
How does strategic management accounting support decision-making?
By evaluating external information such as trends in costs, prices, market share, and competitors.
p.4
Strategic Management Process
What are the support activities in the organizational value chain?
Research and development, accounting, human resources, information technology, and infrastructure.
p.14
Role of Management Accountants
How do management accountants drive sustainable organisational success?
By being creators, enablers, preservers, and reporters of value.
p.12
Analytical Techniques in Strategic Management
Why is comparing internal information with external benchmarks important?
It enhances the usefulness of internal data like product costing.
p.13
Contemporary Skills Required for Management Accountants
What unique skills do accountants bring to the business adviser role?
Understanding financial information and disciplined use of control mechanisms.
p.12
Contemporary Skills Required for Management Accountants
What job titles are commonly associated with management accountants?
Business analyst, commercial analyst, decision support, commercial manager, finance business partner, and business adviser.
p.13
Contemporary Skills Required for Management Accountants
What skills are increasingly important for senior accountants beyond financial skills?
Negotiation, communication, and team management skills.
p.4
Value Creation for Stakeholders
What must a truly valuable offering provide?
Economic value to the organization and sustainable value to other stakeholders within society.
p.12
Role of Management Accountants
How do management accountants enhance their understanding of the organization?
By being placed in different areas or project teams within the organization.
p.6
Role of Management Accountants
What is the role of strategic management accounting?
To support managers in both strategic and operational management.
p.9
Analytical Techniques in Strategic Management
What is CVP analysis used for in this context?
To model the decision to reduce the price and increase advertising to boost market share.
p.8
Differences Between Strategic and Operational Management
How does strategic management differ from operational management in terms of scope?
Strategic management is an organization-wide phenomenon, whereas operational management relates to specific operations.
p.6
Strategic Management Process
What is the first step in the strategic management process?
Strategic analysis through scanning the internal and external environment.
p.2
Role of Management Accountants
What role does management accounting play in strategic management?
It helps in transitioning from a management accountant to a competent business partner by adopting the right mindset and values.
p.5
Stakeholder Perspectives on Value
What societal impacts can result from cost-cutting measures like reducing staff?
Unemployment, financial pressure on communities, and increased stress for remaining employees.
p.2
Challenges in Management Accounting
Why is continuous review and improvement important in organizations?
To ensure activities and processes align with strategic goals and adapt to changes in the external environment.
p.12
Stakeholder Perspectives on Value
What environments does strategic management accounting focus on?
Both the organisation's internal and external environments.
p.3
Stakeholder Perspectives on Value
Why is focusing solely on shareholder wealth considered narrow?
It ignores other important stakeholders and their interests.
p.5
Stakeholder Perspectives on Value
What is a potential negative effect of massive price discounting by supermarkets?
It can force suppliers to reduce prices, threatening their viability.
p.4
Value Creation for Stakeholders
What philosophical issue must be considered when determining value?
From which perspective should value be determined?
p.14
Contemporary Skills Required for Management Accountants
What is a key interpersonal skill for professional accountants?
Communicating clearly and concisely in both written and oral forms.
p.12
Contemporary Skills Required for Management Accountants
What essential skills are often required for management accountants?
The ability to use ERP systems, databases, and spreadsheets.
p.4
Value Creation for Stakeholders
What is the primary task of an organization regarding customer value?
To create an output that has customer value at a cost lower than the price the customer is willing to pay.
p.3
Role of Management Accountants
What role do management accountants play in value creation?
They support management in creating, managing, and protecting value.
p.10
Challenges in Management Accounting
What is a significant challenge in managing service capacity?
Unused capacity is lost forever and cannot be recovered once the service is provided.
p.11
Analytical Techniques in Strategic Management
What contemporary management accounting tools do management accountants use?
Product life cycle costing, customer profitability analysis, and balanced scorecards (BSCs).
p.6
Strategic Management Process
What does the strategic management accounting process involve?
Defining the organisation’s strategy and choosing a set of strategies for value creation.
p.11
Introduction to Strategic Management Accounting
What strategic management accounting information can support the objective of 'Quality places and spaces'?
Information related to integrated built and natural environments.
p.3
Value Creation for Stakeholders
What is a key aspect of value creation in contemporary organizations?
Creativity and innovation.
p.14
Contemporary Skills Required for Management Accountants
What organizational skill involves reviewing work to ensure compliance with quality standards?
Reviewing own work and that of others.
p.11
Value Creation for Stakeholders
How does management accounting contribute to 'Growth and Prosperity'?
By supporting diverse, well-planned neighborhoods and a strong local economy.
p.2
Strategic Management Process
What is involved in a strategic management process?
It includes various stages that help organizations define their strategic direction and create value.
p.10
Role of Management Accountants
What is a key role of management accountants beyond recording information?
To provide support and training to assist line managers and employees.
p.2
Value Creation for Stakeholders
What is necessary for value creation in organizations?
A clear strategy based on a vision and mission, effective resource use, and alignment of day-to-day activities with overall strategy.
p.5
Stakeholder Perspectives on Value
What are the consequences of switching production to cheaper offshore locations?
Local unemployment, environmental degradation, and increased injuries among poorly protected employees.
p.11
Role of Management Accountants
What is the role of management accountants in the strategic management process?
They act as information providers for business processes, organizational planning, resource management, and value creation.
p.2
Strategic Management Process
What is the importance of feedback and reporting from the operational level?
It serves as a control mechanism to ensure alignment with the organization’s vision and mission.
p.3
Value Creation for Stakeholders
What are some examples of value creation mentioned in the text?
Growing food, generating energy, providing health care, and building infrastructure.
p.13
Role of Management Accountants
What are some areas where accountants must provide valuable services?
Strategic business planning, customer profitability management, and cost management.
p.12
Differences Between Strategic and Operational Management
What is a key difference between traditional and strategic management accounting?
Strategic management accounting includes a broader range of data, such as financial, operational, and qualitative data.
p.4
Challenges in Management Accounting
What does corporate social responsibility (CSR) indicate about value?
People are interested in how economic value is created, not just the value itself.
p.9
Challenges in Management Accounting
What internal problem contributed to the sales revenue variance for Alpha?
A delay in product delivery to several large retailers who had sold out.
p.3
Value Creation for Stakeholders
What is the ultimate outcome for many organizations?
To generate wealth for the owners.
p.14
Contemporary Skills Required for Management Accountants
What is the significance of applying negotiation skills in interpersonal communication?
To reach solutions and agreements.
p.6
Strategic Management Process
What are the key issues addressed in the strategic management process?
Determining the vision, mission, and purpose of an organisation, and setting specific objectives.
p.8
Differences Between Strategic and Operational Management
What type of management orientation is required for strategic management?
High-level strategic management orientation.
p.5
Strategic Management Process
What are some key decisions involved in the strategic management process?
Direction, industry, products/services, structure, systems, processes, goals, and objectives.
p.13
Challenges in Management Accounting
What is a key component of enhancing overall performance in organizations?
Risk management and mitigation.
p.14
Contemporary Skills Required for Management Accountants
What are the main categories of skills required for today's professional accountant according to the IAESB?
Intellectual skills, interpersonal and communication skills, personal skills, and organisational skills.
p.13
Role of Management Accountants
How should accountants be perceived in the business environment according to the business partner approach?
As engaged business partners rather than just number-crunchers.
p.4
Stakeholder Perspectives on Value
Why is stakeholder consideration critical to organizational success?
Because organizations require community permission, infrastructure, customers, and employees to operate effectively.
p.1
Analytical Techniques in Strategic Management
What does the module conclude with regarding management accountants?
An examination of various analytical techniques available to assist them in supporting management's strategic decisions.
p.11
Value Creation for Stakeholders
What does the 'Clean and Green' objective aim for in a city?
A clean, healthy city with accessible open spaces, cleaner air, and water.
p.14
Analytical Techniques in Strategic Management
What tools and techniques are required in strategic management accounting?
Competitor analysis, customer cost and profitability analysis, supplier analysis, and external benchmarking.
p.6
Strategic Management Process
What are the important phases in the strategic management process?
Strategic analysis, strategy planning and choice, strategy implementation, and strategy evaluation.
p.8
Differences Between Strategic and Operational Management
What management orientation is needed for operational management?
Tactical management orientation focused on implementation and achieving operational excellence.
p.7
Strategic Management Process
Why must organizations continuously analyze the external environment?
To understand trends and changes that affect the industry and the economy.
p.12
Strategic Management Process
How is operational management viewed in the context of strategic management accounting?
As strategic implementation rather than a separate process.
p.5
Value Creation for Stakeholders
What role does strategic management accounting play in creating value?
It helps organizations create long-term, sustainable value for all stakeholders.
p.1
Value Creation for Stakeholders
What is meant by 'linked chains' in the context of organizations?
Organizations are viewed as chains of resources and activities that produce products and services of value to consumers.
p.11
Contemporary Skills Required for Management Accountants
Why is it important for management accountants to improve their soft skills?
To effectively communicate with internal and external stakeholders.
p.10
Strategic Management Process
What does 'efficiency' mean in performance assessment?
The maximization of outputs for a given set of inputs.
p.6
Strategic Management Process
What is the focus of strategic management?
Determining the direction and structure of the organisation and developing plans and objectives.
p.13
Contemporary Skills Required for Management Accountants
What is essential for effective communication in accounting roles?
The ability to write concise and understandable reports.
p.9
Contemporary Skills Required for Management Accountants
What operational support techniques are considered essential knowledge?
Cost classifications, CVP analysis, product costing, marginal costing, and working capital management.
p.9
Impact of Technology on Management Accounting
What organizational change has improved flexibility and responsiveness?
Fewer employees and flattened hierarchies with greater authority delegated to lower-level employees.
p.8
Challenges in Management Accounting
What caused the rise in production costs for Alpha Pty Ltd?
Raw material price increases due to unfavorable foreign exchange fluctuations.
p.5
Introduction to Strategic Management Accounting
How does strategic management differ from traditional accounting?
It focuses on forward-looking information and external factors rather than just internal accounting data.
p.13
Role of Management Accountants
What role do management accountants often perform in risk management?
The effective use of controls to manage risk.
p.2
Stakeholder Perspectives on Value
What influences must organizations monitor in their external environment?
Competitor activity, economic and regulatory factors, technological advancements, and social changes.
p.3
Value Creation for Stakeholders
How does value creation differ in the not-for-profit and public sectors?
Value is created for members, citizens, or residents instead of increasing wealth for shareholders.
p.7
Differences Between Strategic and Operational Management
What is the relationship between senior strategic managers and operational managers?
Senior managers focus on strategic tasks, while operational managers handle medium- to short-term tasks.
p.6
Role of Management Accountants
What are the two broad categories of management activities?
Strategic management and operational management.
p.11
Strategic Management Process
What is the significance of a 'Mobile and Connected City'?
It emphasizes a safe, sustainable, and effective transport network.
p.7
Challenges in Management Accounting
What is essential for an organization to achieve short-term plans?
Constant feedback and adjustment of objectives if there is a deviation from the plan.
p.11
Challenges in Management Accounting
What challenges do management accountants face in their roles?
They must adapt to changing circumstances due to regulations, competition, and technological advances.
p.8
Role of Management Accountants
How can strategic management accounting support operational management?
By providing information for planning, evaluating performance, and setting targets.
p.2
Challenges in Management Accounting
What are some key challenges facing management accountants today?
Challenges include adapting to changes in the business environment and ensuring alignment with strategic goals.
p.2
Strategic Management Process
How should day-to-day activities be linked in an organization?
They must be linked to the organization’s overall strategy to drive towards desired outcomes.
p.1
Introduction to Strategic Management Accounting
What is the definition of strategic management accounting provided in the module?
Creating sustainable value by supporting strategy formation, selection, implementation, and evaluation, and synthesizing financial and non-financial information.
p.3
Value Creation for Stakeholders
How is value typically described in a business context?
As increasing shareholder wealth.
p.10
Strategic Management Process
What are the three key metrics for performance assessment in the public sector?
Economy, efficiency, and effectiveness.
p.6
Strategic Management Process
What is the main theme of Part B of the module?
To explain the strategic management process and the role of strategic management accounting in supporting managers.
p.7
Impact of Technology on Management Accounting
How did Amazon innovate its supply chain management?
By investing in supply chain automation and increasing the number of warehouses.
p.14
Contemporary Skills Required for Management Accountants
What personal skill emphasizes the importance of lifelong learning?
Demonstrating a commitment to lifelong learning.
p.3
Challenges in Management Accounting
What is a potential risk of pursuing shareholder value exclusively?
It is not sustainable and may ignore other areas of value creation.
p.8
Differences Between Strategic and Operational Management
What is the time focus of strategic management compared to operational management?
Strategic management is a long-term process, while operational management focuses on short and medium terms.
p.8
Differences Between Strategic and Operational Management
What do strategic management and operational management manage differently?
Strategic management manages critical success factors (CSFs), while operational management performs day-to-day activities.
p.8
Differences Between Strategic and Operational Management
What is a key difference between strategic and operational management regarding organizational survival?
Strategic management is directly linked to the survival of an organization, while operational management indirectly influences it.
p.8
Differences Between Strategic and Operational Management
What is the nature of activities in operational management?
Routine day-to-day activities.
p.8
Differences Between Strategic and Operational Management
How does the ambiguity differ between strategic and operational management?
Strategic management can be very ambiguous, while operational management does not involve any ambiguity.
