Managerial Acct

Introduction

One of the major issues presented in the required reading was changes being implemented to improve supply chain problems between Mattel and its major customers. To begin the company designated teams of eight to twelve people from across Mattel's main divisions and gave them a month to study each retail customer. By using this information to produce more efficient designs with an improved flow of information service levels are up to 90% in some areas, Bannon (2001). Many companies just like Mattel are realizing the effect Supply Chain Management is having with bottom line consumers. This paper will examine how Management Accounting is becoming a large part of Supply Chain Management. First, Supply Chain Management, Management Accounting and Cost Management will be defined. Second, Supply Chain Management will be discussed in regard to its developing relationship with Management Accounting and Cost Management. Third this relationship will be further examined including supplier relationships and the trend of adding management accountants to multifunctional teams. Lastly each of these areas will be presented based on new learning from BUS 630.

II.

Definitions

By definition Supply Chain Management is “The strategic management process, unifying the systematic planning and control of all technologies, materials and services, from identification of need by the ultimate customer. It encompasses planning, designing, purchasing, production, inventory control, storage handling, distribution, logistics and quality. The objectives are to optimize performance in meeting agreed customer service requirements, minimizing cost, while optimizing the use of all resources throughout the entire supply chain,” Clinton (2004). Talha, Raja & Seetharaman (2010) define Management Accounting as a process of providing financial and non-financial information to managers who need information for planning and controlling either short or long term decisions at all...