Integrating the Accounting Value Chain in Financial Accounting Courses by crawfordhanes

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									Integrating the Accounting Value
  Chain in Financial Accounting
             Courses

                  by
           Jane Stoneback
              Anne Rich
  Central Connecticut State University
            New Britain, CT
       Teaching Objectives
• Develop understanding about the
  accounting profession
       VALUE CHAIN CONCEPT
• IDENTIFYING ALL OF THE VALUE
  CREATING ACTIVITIES
    – FROM BASIC RAW MATERIALS TO
        DISPOSAL OF FINISHED PRODUCTS BY
        END-USE CUSTOMERS                –
•   INTRODUCED IN THE 1980’S BY Michael Porter based on work done my
    MCKinsey
      LEVELS OF ANALYSIS
• INDUSTRY ANALYSIS
   – A LINKED SET OF ACTIVITIES IN THE
     INDUSTRY
      • DIFFERENT COMPANIES PARTICIPATE IN
        DIFFERENT ACTIVITIES
      • MANAGEMENT MUST CHOSE THE
        ACTIVITIES OF THE FIRM – WHAT WILL BE
        DONE
• FIRM ANALYSIS
   – A LINKED SET OF ACTIVITIES TO DEFINE
     HOW THE FIRM WILL ACCOMPLISH THE
     ACTIVITY
 HOW IS THE VALUE CHAIN USEFUL IN
  ACCOMPLISHING OUR TEACHING
           OBJECTIVES
• UNDERSTANDING THE PROFESSION
   – INDUSTRY VALUE CHAIN
   – SKILLS NEEDED TO BE SUCCESSFUL
• UNDERSTAND THE ACCOUNTING CURRICULUM
• STUDENTS BEGIN TO DEVELOP OWN PERSONAL
  VALUE CHAIN
           ACCOUNTING INDUSTRY
               VALUE CHAIN

Record     Summarize     Summarize     Transform     Value-added
Business   events into   events into   Data Into     Decision
Events     external      internal      Information   Making
           reports       reports       and
                                       Knowledge
  ANALYSIS OF ACTIVITIES
• OPPORTUNITIES TO GROW
• POINTS OF DISTINCTION
• DEVELOP INTERNAL AND EXTERNAL
  LINKAGES
• LEVERAGE CORE COMPETENCIES
  DEVELOP THE FIRM VALUE
          CHAIN


SUPPORT ACTIVITIES
R&D   Design   Production   Marketing   Distribution   Customer
                                                       Service
   TEACHING ABOUT THE
 ACCOUNTING PROFESSION
• UNDERSTAND THE
  INDUSTRY
• VARIETY OF CAREERS
• EVALUATE POTENTIAL
  EMPLOYERS
• MOTIVATE THE
  ACCOUNTING CURRICULUM
• ENCOURAGE
  DEVELOPMENT OF THE
  INDIVIDUAL VALUE CHAIN
       Student Assignments
• Research international, regional and local
  accounting firms
• Research careers – public, private and
  government
• Review resumes of competitors
• Participate in accounting society meetings
  and professional activities
• Participate in career fair
      AC 300: Fundamentals of
            Accounting
• 50 students responded to a survey
• Approximately half traditional age, half
  over 25 years of age
• Mostly accounting majors
• 70% full time 30% part time
• 30% no work experience– mostly non-
  accounting positions
    Survey Questions: Focused on
    Change in Knowledge related to
•   Accounting careers
•   Value chain
•   Professional ethics
•   Skills needed in the accounting profession
 Survey Results: Accounting Skills
• Significant difference between full-time
  and part time students in understanding of
  accounting skills needed by the profession
• Part-time students gained most knowledge
  about accounting skills needed
    Survey Results: Value Chain
            Knowledge
• Significant difference between those with
  work experience and those without work
  experience in understanding value chain
  concepts
• Those with some work experience were
  able to gain the greatest difference in
  understanding the value chain
            Survey Results
• Mean differences existed in all categories
• Largest mean differences appeared in
  – Value chain
  – Accounting careers
                    Benefits
• Students gain an understanding of the broader
  purpose of accounting in providing information
  about a business entity.
• Students obtain a broader overview of the
  accounting profession and the numerous
  accounting careers and rich variety of choice.
• There are no right or wrong answers to the
  questions. Students have little fear of “getting it
  right”. As a result, students develop better
  quality answers and engage in discussion.
         Benefits - continued
• Students develop in their understanding of
  business strategy by looking at the application
  of the value chain to the accounting profession.
• It encourages students to know how to find out
  about what they don’t know. If they are
  interested in forensic accounting, for example,
  they learn how to research the issue.
• Students learn the value of student
  memberships in professional organization and in
  participating in on-campus clubs.
            Benefits concluded
• Students understand the accounting curriculum and their
  choices and learn that while they must obtain a
  foundation knowledge in all areas of accounting, they
  need not be expert in all topics to be successful in
  accounting. Accountants eventually find an area that
  meets their interest.
• Students learn how to build their resume and acquire the
  skills needed to be successful in the accounting
  profession.
• Students are motivated to achieve their goals and less
  distracted by material that doesn’t excite them when they
  understand the range of career choices

								
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