Lanuza,Ma. Sharmaine C.

FMA41FC1
II. Management Accounting and Business Environment
1. Just In Time
Just in time means denoting a manufacturing system in which
materials or components are delivered immediately before they are required
in order to minimize inventory costs. Because of fast changing environment
mostly business firms provides every possible solution to all of the problems
that occurring in the business area, especially in distributing and transporting
goods or raw materials needed. We all know that the main goal of
management is to maximize profit and minimize cost, this is one way to
minimize cost by using just in time. Also one of the benefit of it is to minimize
the future defect on goods or products, for example Jollibee a Filipino fast
food chain where they offer burgers which needs lettuce and can only last for
one week to maintain its freshness, so now Jollibee will order to their supplier
of lettuce to deliver them their goods. After delivering the goods because
lettuce can only last for a short time and they need to maintain its freshness
for the customers theyll use just in time process, after the delivery these
good will go straight to their inventory and no need to stock these on their
warehouse. It minimize the cost and time, it targets zero defects and it
improves production scheduling.
2. Benchmarking
It is a measurement of quality of an organizations policies products,
programs strategies and their comparison with the standard measurement or
similar measurements of its peers. An example for this is our school
Technological Institute of the Philippines we adapt this OBTL learning program
by using this strategy. And also our CBE Dean told us that theyre applying
this benchmarking strategy, they went to different Universities in Australia to
bench mark, they usually visit universities and observe what policies they
implementing for the students to excel. And there are many business firms do
this strategy too to know what their weaknesses on the other aspects. It is
basically like a research for product innovation to improve its qualities. Its
objectives are to determine are what and where the improvements are called

for, to analyze how organizations achieve their high performance levels and
to use this information to improve performance.
3. Total Quality Management
The continuous process of reducing or eliminating errors in manufacturing
streamlining supply chain management, improving the customer experience
and ensuring that employees are up-to-speed with their training. Total quality
management aims to hold all parties involved in the production process as
accountable for the overall quality of the final product or service.

4. E-Commerce
The buying and selling of products and services by

businesses

and consumers through an electronic medium, without using any paper documents.
E-commerce is widely considered the buying and selling of products over the
internet, but any transaction that is completed solely through electronic measures
can be considered e-commerce. It is amazing how fast and innovative technology
today, we can have everything we want in just one click on our smart phones.
Almost business firms today uses internet for communicating with the consumers
and they can have a fast feedback on them too, it also help companies to minimize
their

cost

and

made

their

service

on

their

customers

on

time.

5. Balanced Scorecard
The balanced scorecard is a strategic planning and management system that is
used extensively in business and industry, government, and nonprofit organizations
worldwide to align business activities to the vision and strategy of the organization,

improve

internal

and

external

communications,

and

monitor

organization

performance against strategic goals

6. Theory of Constraint (TOC)

The Theory of Constraints is a methodology for identifying the most important
limiting factor (i.e. constraint) that stands in the way of achieving a goal and then
systematically improving that constraint until it is no longer the limiting factor. In
manufacturing, the constraint is often referred to as a bottleneck. The business
firms focus on their weakness to eliminate them one by one.

7. Activity-based Costing Management

Activity based costing (ABC) assigns manufacturing overhead costs to products
in a more logical manner than the traditional approach of simply allocating costs on
the basis of machine hours. Activity based costing first assigns costs to the
activities that are the real cause of the overhead. It then assigns the cost of those
activities only to the products that are actually demanding the activities.