Future of Management Accounting
There are a number of articles in the business and professional press in recent years that discuss the topic of the changing role of the management accountant. Very often the management accountant is referred to as a "finance professional" since the management accountant usually works in the finance departments of firms. A quick search of the professional literature has identified the two articles located at the links below.
Go to the web sites and review the articles. In less than 150 words, give your view of the future of the management accountant based on what you see in these articles and the trends you see in business and finance.
Identify one additional article in the business and professional press that discusses the future of the management accountant. In 100 words or less, ompare the ideas in this article to your ideas in part 1 above.
Hint: You can find additional articles by going to the web sites of the key professional organizations, which include (http://www.fei.org; http://www.cima.org.uk/; http://www.aicpa.org/index.htm; and http://www.imanet.org/), or by using a search program such as Yahoo (www.yahoo.com).
Different Professional Organizations
There are a number of professional organizations throughout the world that represent the interests of the management accountant professional, providing educational materials and other services to the management accountant. A list of some of these organizations is provided below.
Required: In 200 words or less, explain how the different organizations support the profession of management accountant, that is, the nature and extent of the publication they offer, educational programs, etc.? Use specific examples that you notice in reviewing the web sites.
Statistics Information (White House, New York Stock Exchange)
There are a number of sources of economic and demographic information that can assist the management accountant. The information includes financial information such as interest rates, employment, income, international trade, output of goods and services, consumer price levels, and market values of stocks and bonds. The management accountant uses this information to better understand the environment in which his or her firm competes. For example, when interest rates are moving up (or down) rapidly the management accountant will want to consider the effect of the interest cost changes on his or her analysis and recommendations regarding cash flow management, introducing new products, improving or expanding production facilities, and so on. Two sources of statistical information are shown below:
Required: Review the White House statistics for output, international, and production, and the New York Stock Exchange "market information." Comment on the current state of the economy that you see in these statistics, in 200 words or less.
Different Professional Certificate Programs
There are several professional certificate programs that are of interest to management accountants. Each certificate is awarded based on the results of a comprehensive examk plus other education and experience requirements. Perhaps the best known is the CPA which is administered by each of the 50 states in the U.S. The CPA certificate represents achievement of a broad knowledge of the accounting profession, including auditing, tax accounting and governmental accounting, among others. Information about the CPA is available at the American Institute of CPAs (AICPA) website.
The Institute of Management Accountants (IMA) has two professional certification programs of interest to management accountants. The first is the Certificate in Management Accounting (CMA) that is administered by the IMA. It has a framework similar to that of the CPA exam except that its focus is on broad business knowledge and competence in management accounting practices, with much less attention to taxation and auditing. The IMA also has a CFM (Certified Financial Manager Program) that is targeted to finance professionals and financial analysts. Information about these two programs is provided on the website below.
Required: Review the AICPA and IMA websites, and in 200 words or less, explain how the three certificate programs differ, and which certificate program (if any) might be most appropriate for you given your current career interests. Use specific examples that you notice in reviewing the web sites.
