1.0 Executive Summary  執行摘要

 

With the development of society and technology, the competition is fiercer among companies. Companies must take new tools to meet the changing challenge.

隨著社會和科技的發展，企業之間的競爭越來越激烈。公司必須采取新的工具來滿足不斷變化的挑戰。
 

As a consequence, the strategic management accounting is popular in the companies, which is taking the responsibility of meeting the challenge.

結果，戰略管理會計在公司很受歡迎，它的責任是迎接挑戰。
 

In the report, several aspects are discussed. First of all, the role strategic management accounting takes in the company is put forward. A brief introduction about the characteristics of strategic management accounting and the information they provide are described in the report. Then, some aspects that the strategic management accounting must take into consideration are talked about from the relevant cost tot irrelevant cost. Of course, several small numerical examples are essential to give a clear image about the influence of relevant and irrelevant costs on the revenue. Last but not the least, the cost and benefit analysis is used as a tool to evaluate the feasibility of an activity in the company. In this report, acquisition activity is taken as an example to practice the cost and benefit analysis in the company.

在報告中從幾個方面進行了討論。首先，提出了公司戰略管理會計的作用。關于戰略管理會計與他們提供的信息特點，簡要介紹報告中描述的。然后，一些方面的戰略管理會計所要考慮的是談論從有關成本到無關成本。當然，一些小的數值例子給出關于稅收的相關和不相關的成本影響的清晰的圖像至關重要。最后，成本效益分析是用來作為一種工具來評估在公司活動的可行性。在這份報告中，以收購活動為例，分析公司的成本效益。
 

All in all, the strategic management accounting is becoming more and more important in the company; it will bring great benefits to the company. Therefore, every company should make great use of the strategic management accounting and make profits.

總之，戰略管理會計對企業越來越重要；它將給公司帶來巨大的好處。因此，每一個公司應充分利用戰略管理會計獲利。
 

2.0 Introduction  引言

 

With the speedup of the process of economic globalization, global competition is becoming fiercer, making the external environment of enterprises more and more uncertain, which urges enterprises to enhance their management activities to strategic management level. Urged by the roily external environment, enterprises in our country are eager to assimilate advanced technological achievement and management experience from other countries.#p#分頁標題#e#

 

As the new economy is coming, managers make great efforts to be in the ascendant by advanced theory and methods in field of management. In fact, it can be said that all competitive ways in the world is the competition of stratagem. The strategic management gradually becomes the guidance for the companies’ long term development and detailed goals. There is a large need of management accounting’s information, including inner& outer, financial & in financial, absolute& opposite, historical& practical, so the enterprise can confine the operation, found the strategic target, constitute the stratagem, implement the stratagem, evaluate the strategic achievement and adjust the stratagem. As a consequence, it causes an urgent demand for the strategic management accounting, which is the reason for the management accounting is evolving into strategic management accounting. (Tobias, J., 2009)This is also the academic base of setting up strategic management accounting.

 

Strategic management accounting is a fiscal information system. It affords and analyses data that strategic management needs, it consists of cost, price, operation, market share, cash flow and requirement of resource, which reflects relatively level and change trend of fiscal information.

 

Basic methods of strategic management accounting not only comprises new methods such as activity-based costing, target cost, value chain analyses, produce life cycle cost, the balanced scorecard in field of management accounting. The most basic approach of the strategic management accounting is the attribute costing method based on the strategic cost analysis matrix. (Bromwich, 1996& Bromwich and Bhimani, 1999)

 

3.0 Theoretic Foundations  理論基礎

 

3.1 Strategy

 

3.1.1The Definition

 

The strategy means a whole plan for setting goals and realizing goals for the company. It is the macro-level, which has six characteristics, such as guidance, overall, long term, competitive and systemic. (Jean, N., Silvia, P., Manon, C., 2005)

 

3.1.2Importance of the Strategy

 

The strategy is important for it matters the most important and basic issue influencing the future development for the company. The corporate strategy matters the whole company, which includes every factors and functions. Strategy means combining all departments together with great efficiency rather than simply addition.

 

3.2 Cost

 

3.2.1The Definition

 

The cost means the price paid or required for acquiring, producing, or maintaining something, usually measured in money, time, or energy.

 

In the field of advertising and public relations, the mainly cost are as follows. They are advertisement fee, printing fee, prolific fee, book bounding fee and business entertains cost. (Kyle, B., 2007)#p#分頁標題#e#

 

What’s more, there are many kinds of cost, for instance, direct cost and indirect cost, relevant cost and irrelevant cost. Usually, the irrelevant cost has no relations with the future operating of the company, so the manager does not need to take them into consideration when making decisions.

 

3.2.2Role of Cost Control in the Development of the Company

 

First of all, cost control is an important measure for cost management. It is a qualitative index which gives a clear accomplishment about the managers did. Number gives the managers knowledge about the process of the company.

 

What’s more, cost control provides the power to improve the business management. Just as the old saying goes, the success is decided by the cost, for high cost will lead to high price, then fewer consumers, vice versa. So a good control of cost is especially important to the long term development of a company.

 

Last but not the least; cost control is an important condition to set up the economic responsibility system in the company. Because there are many kinds of cost and every cost is important to the whole cost, an economic responsibility division based on the cost is a good way to control the whole cost of a company.

 

All in all, the low cost is a great advantage for the long term development of the company. As we all know; price is dependant on the cost. The low price and high quality provide a great competitive to meet the serious competition in the market. (Nadine, H., Onesimo, H., 2000)

 

4.0 Strategic Management Accounting  戰略管理會計

 

Just as what has been mentioned above, strategy and cost are two most important factors, which have great influence on the development of the company. As a consequence, the strategic management accounting becomes popular in companies, especially in the fast growing companies, such as Jessup Ltd, for cost is especially important for a fast growing company.

 

4.1 Characteristics

 

4.1.1Entirety

 

Strategic management accounting aims at enterprise’s long target and whole benefit. It pays more attention to entirety. As the strategic management accounting, it not only provides traditional accounting information, but also several strategies for the companies’ development. They do the work not just based on the accounting materials but also the whole information about the company.

 

4.1.2More Non-Financial Information

 

Strategic management accounting provides more non-financial information that related to strategy, for example, the environment around the company, or the economic situation at the exact time. What’s more, it enlarges management accounting personnel’s function range and quality requirement.#p#分頁標題#e#

 

4.1.3New Method

 

Strategic management accounting uses new strategic evaluation of performance, for example the method called cost and benefit analysis.

 

Compared with traditional management accounting, strategic management accounting not only pays its attention to the results, but also the process. Strategic management accounting uses the strategic evaluations, which is a combination of evaluation and strategy used in the company. It is a wholesome performance evaluation. (Robin, R., Susan, J., 2003)

 

4.1.4More Attachments

 

Strategic management accounting attaches importance to corporate culture and individuality, because culture is really an important factor, which should be paid more attention when making plan for the operation of the company. Besides, it provides the report of performance evaluation on time and in effect.

 

4.2 Role in the Company

 

4.2.1It provides comprehensive management information

 

The strategic management accounting should strength management and use limited resources to improve economic benefits to the largest extent if the company wants to develop itself. In order to develop, it depends on the legal accounting forms and fitted accounting model to submit its accounting statements. What’s more, the inner information applying to the company’s own characteristics is also essential. For these reasons, the strategic management accounting is responsible for the task in the company.

 

In such a competitive society, the success depends on the knowledge which the company owned. In order to be successful in the quick change world, whole information about the company is necessary. So the strategic management accounting is needed to the success. They do their work by analyzing the environment around the company and put forward the most feasible measures for the long term development.

 

4.2.2It takes part in the economic decision actively.

 

Economic decision is the core of the modern business management, besides, it is also the important content of modern management accounting. It is a fact that those who are successful in the competitive society are making correct economic decisions in the daily performance.

 

The presupposition of the decision making is objective prediction, including selling, cost, profit, capital forecast. Of course, capital forecast is especially important among them. If something is wrong with the capital operating, it may cause the company to stop producing, but may be in bankruptcy at worst. Nowadays, all companies almost operate with large debts. If they have a good capital function plan and make their capital operate in a good cycle, they will take a more serious risk than before.#p#分頁標題#e#