CHAPTER

2
THE PROFESSIONAL
ENVIRONMENT OF
COST MANAGEMENT
EXPECTED LEARNING ouTcOMES
After studying this chapter, you should be able to..
Describe the position of the management
accountant in the organization structure of the
business firm
.
Explain the role and the relationship between the
Chief Financial and the Controller
Describe the functions and responsibilities of the
Controller as the top management accOuntant
Explain the role and the relationship between the
4
Chief Financial Officer and the Treasurer
Describe the functions and responsibilities of the
.
Treasurer
Understand
b
the
ethical
standards
for
management accountants
Realize the need for a company code of conduct
8. Be familiar with ypical ethical challenges that
management accountants encounter
9. Describe the intenational certifications that are
available to management accountants

CHAPTER 2
THE PROFESSIONAL ENVIRONMENT
OF COST MANAGEMENT
ORGANIZATION STRUCTURE AND THE MANAGEMENT
ACCOUNTANT
Many of the activities constituting the field of management accounting are
interrelated and thus must be coordinated, ranked and implemented by the
management açcountant in such a fashion as to meet the objectives of the
organization as perceived by him or her. A major function of the management
accountant is that of tailoring the application of the process to the organization so
that the organization's objectives, short-tem and long-term, are achieved
effectively.
Management accounting is intended to include persons involved in such functions
as controllership, treasury, financial analysis, planning, and budgeting, cost
accounting, internal audit, systems, and general accounting. Management
accountants thus may have titles as controller, treasurer, budget analyst, cost
analyst, and accountant, among others.
The accounting function is usually "staff", with responsibility for providing line
managers and also other staff managers, with specialized services. This includes
advice and help in the areas of budgeting, controlling, pricing and special
decisions.
Line authority is the authority to command action or give orders to subordinates.
Line managers are directly responsible for attaining the objectives of the business
firm as efficiently as possible. Sales and production managers typically have line
authority. Staff authority is the authority to advise but not command others; it is
exercised laterally or upward. Staff managers give support, advice and service to
line departments. Examples of staff authority are found in personnel, purchasing,
engineering and accounting.
Except for exercising line authority over his department, the chief accounting
officer usually the controller generally fills the staff role in his company as
contrasted with the line roles of sales and production executives. Theoretically,

22 Chupter
ne controller transmits the best accounting procedures to be followed by the Bne
people to the President who will communicate such through a manual o
nstructions. In practice however, the controller holds delegated authority from
top line management to direct the line people on how to apply these procedures,
This is known as functional authority which is the right to cominand action,
laterally or downward,with regard to a specific function or specialty.
THE CHIEF FINANCIAL OFFICER AND THE CONTROLLER
The chief financial officer (CFO)- also called the finance director in many
Countries-is the executive responsible for overseeing the financial operations of
an organi1zation, The responsibilities of the CFO vary among organizations, but
they usually include the following arcas:
includes providing financial information for reports to
Controllership
managers and reports to shareholders and overseeing the overal
operations of the accounting system
Treasury- includes banking and short- and long-term financing,
investments, and management of cash.
Risk management-includes managing the financial risk of interest-rate
and exchange-rate changes and derivatives management.
Taxation- includes income taxes, sales taxes, and international tax
planning.
Internal audit- includes reviewing and analyzing financial and other
records to attest to the integrity of the organization's financíal reports and
to adherence to its policies and procedures.
In some organizations, the CFO is also responsible for information systems. In
other organizations, an officer of equivalent rank to the CFO called the chief
information officer-is responsible for information systems.
The controller (also called the chief accounting officer) is the financial executive
primarily responsible for management accounting and financial accounting. This
book focuses on the controller as the chief management accounting executive.
Modern controllers do not do any controlling in terms of line authority except over
their own departments, Yet, the modern concept of controllership maintains that
the controller does control in a special sense. That is, by reporting and interpreting
relevant data (problem-solving and attention-directing roles), the controller exerts
a force or influence that impels management toward making better-informed
decisions.

The Profesional Lnvironment of Cost Managemeni

Figure 2-I is an ilustrative organízation chart of the CFO and the corprate
controller of an apparel company
Figure 2-1: Reporting Relatíonships for the CFO and the Corporate
Controller
Chairman
Chief Executive Officer
Board of Direcors
(CEO)
President
Chief Operatirg Officer
(COO)
Chief Financial Officer
(CFO)
Controller
Treasurer
The Controller as the Top Management Accountant
Controllership is the practice of the established science of control which is the
process by which management assures itself that the resources are procured and
utilized according to plans in order to achieve the company's objectives.
In most organizations, the top managerial accounting position is held by the
controller. The controller provides reports for planning and evaluating company
activities (e.g., budgets and performance reports) and provides the information
needed to make management decisions (e.g., decisions related to construction of a
new factory or decisions related to adding or dropping a product). The controller
also has responsibility for all financial accounting reports and tax filings with the
Bureau of Internal Revenue and other taxing agencies, as well as coordinating the
activities of the firm's external auditors.
24 Chapter 2
Simplitied illustration of the organization chart for the controller s oftice 18
Sown in Figure 2-2. Noté that one of the areas reporting to the controler s cost
ccounting. Most medium-sized and large manufacturing companies have such a
department. Cost accountants estimate costs to facilitate management decisions
and develop cost information for purposes of valuing inventony
Tne controller is an integral part of the top management tea. If one wants a high
evel career in management accounting, he/she will need not only strong
accounting skills but also skills required of all high-level executives. These skills
Include eNCellent written and oral communication skills, solid interpersonal skills
and a deep knowledge of the industry in which the firm competes.
The controller's authority is basically staff authority in that the controller's office
gives advice and service to other departments. However, in his own department
he has line authority. In the modern concept of controllership, it is maintained that
the controller does control in a special sense. That is, by reporting and interpretin8
relevant data, the controller exerts a force or influence that impels management
toward logical decisions consistent with objectives.
Figure 2-2: A Typical Organization Chart Showing the Functions of the
Controller
Controller
Budgeting and
Financial Analysis
and Special Studies
Financial
Performance
Cost Management
Reporting
Renortino
Taxation
Systems
Development
Reporting

The Professional Emvironment of Cost Management 25

Basic Functions of Controllership
The basic principal functional responsibilities and activities of controllership may
be categorized as follows:
1Planning.
consistent with the company's goals and objectives, both short and long
term, analyzed and revised, as required, communicated to all levels of
management, with appropriate systems and procedures installed.
Control.
Establish and maintain an integrated plan of operation
Develop and revise standards against
hich to measure
performance and provide guidance and assistance to other members or
management in insuring conformance of actual results to standards.
5. Reportng. Prepare, analyze, and interpret financial results for utilization
by management in the decision-making process, evaluate the data with
reference to company and unit objectives; prepare and file external reports
as required to satisfy government regulatory bodies, shareholders,
financial institution, customers, and the general public.
Accounting. Design, establish, and maintain general and cost accounting
systems at all company levels, including corporate, divisional, plant, and
unit to properly record all financial transactions in the books of accounts
and records in accordance with sound accounting principles with adequate
internal control.
Other Primary Responsibilities. Manage and supervise such functions as
taxes, including interface with the respective taxing authorities and agents
maintain appropriate relationships with internal and external auditors,
develop and maintain systems and procedures; develop record retention
programs; supervise assigned treasury functions; institute investor and
financial public relations programs; office management; and direct other
assigned functions.
5.
As circumstances warrant, there may be many deviations from the basic functions
just described. It should be pointed out that the controller's eftorts should not be
diluted and render him less effective by assigning to him unrelated functions of an
operational nature. The financial planning and control functions are too important
to the success of the business enterprise to burden the controller with activities that
others can perform.

26 Ohwer
Qualifications of the Controller
An excellent technical foundation in accounting and finance with an
understanding and thorough knowledge of accounting principles.
An understanding of the principles of planning, organizing, and control.
A general anderstanding of the industry in which the company competes
and the sOcial, economic, and political forces involved.
A thorough understanding of the company, including its technologies,
products, policies, objectives, history, organization, and environment
The abilhty to communicate with all levels of management and a basic
understanding of the other funetional problems related to engineering.
production, procurement, industrial relations, and marketing
The ability to express ideas clearly in writing or in making informative
presentations.
The ability to motivate others to achieve positive action and results.
The qualifications of an effective controller would include:
The controller may have the technical capability and be able to lay out the assigned
tasks as well as supervise and direct his personnel, but he must also have integrity
and the ability to communicate if he is to succeed. He must be fair, reasonable,
and sincere with all concerned if he is to be recognized for the importance of the
controllership function.
As in any executive position, the controller must be able to work with people at all
levels, have respect for the ideas and opinions of others, and have the
resourcefulness, to meet all challenges
THE CHIEF FINANCLAL OFFICER AND THE TREASURER
Although organizational structures vary from firm of firm, the role of finance is
assigned to the Chief of Financial Officer (CFO) or the Vice President-Finance
who reports to the President
The financial vice-president's key subordinates are the Treasurer and the
Controller. This book has extensively dealt with the role of the Controller in the
previous section.

The Professional Environment of Cost Management 2

Treasurership
Treasurership is concerned with the acquisition, financing and management of
assets of a business concern to maximize the wealth of the firms for its owners.
In addition to the position of the controller, many companies have a position called
treasurer. The reasurer has custody of cash and funds invested in various
marketable securities. In addition to money management duties, the treasurer is
generally responsible for maintaining relationships with investors, banks, and
other creditors. Thus, the treasurer plays a major role in managing cash and
marketable securities, preparing cash forecasts and obtaining financing from banks
and other lenders. Both the controller and the treasurer report to the chieffinancial
officer (CFO) who is the senior executive responsible for both accounting and
financial operations.
In most firms the treasurer has the following responsibilities:
1. Funds Procurement
This involves raising of funds in accordance with the firms planned capital
structure. This responsibility may require negotiating for loans, short-term
or long-term, issuing equity of debt instruments at the best terms and
conditions possible.
2. Banking and Custody of Funds
This involves direct management of cash and cash equivalents and
maintenance of good relations with banks and other non-bank institution.
Investment of Funds
This involves management of the company's placements and securities or
purchase of debt or equity 1nstruments such as ordinary or preference
shares in other corporate entities. This responsibility also includes analysis
of decisions related to investment in property, plant and equipment
4 Operating Responsibilities related to
(a) Credit and Collection
(b) Inventory Management
(C) Corporate pension and retirement fund
(d) Investor Relations
(c) Insurance
(f Compliance with legal and regulatory provisions relating to funds
procurement, use and distribution as well as coordination of the
finance function with accounting function

28 Chapter 2
ETHICAL STANDARDS FOR MANAGEMENT ACCOUNTANTS
In recent years, many concerns have been raised regarding ethical behavior in
Dusiness and in public life. Allegations and scandals of unethical conduct have
Deen directed toward managers in virtually all segments of society, including
government, business, charitable organizations, and even religion. Although these
allegations and scandals have received a lot of attention, it is doubtful that they
represent a wholesale breakdown of the moral fiber of the nation. After all,
hundreds of millions of transactions are conducted every day that remain untainted.
Nevertheless, it is important to have an appreciation of what is and 1s not
acceptable behavior in business and why.
Fortunately, the Institute of
Management Accountants (IMA) of the United States has developed a very usefu
ethical code called the Standards of Ethical Conduct for Practitioners of
Management Accoumting and Financial Management. Even though the standards
were specifically developed for management accountants, they have much broader
application.
Code of Conduct for Management Accountants
The hstitute of Management Accountants (IMA) issued the Standards of Ethical
Conduct for Practitioners of Management Accounting and Financial Management.
These standards are presented in Figure 2-3. There are two pats to the standards.
The first part provides general guidelines for ethical behavior. In a nutshell, the
management accountant has ethical responsibilities in four broad areas namely
1. to maintain a high level of professional competence,
2. to treat sensitive matters with confidentiality,
3 to maintain personal integrity, and
4. to be objective in all disclosing.
The second part of the standards gives specific guidance concerning what should
be done if an individual finds evidence of ethical misconduct within an
organization.
The ethical standards provide sound, practical advice for management accountants
and managers. They require professional behavior, especially in avoiding conflicts
of, interest. They require management accountants to bring bad news to the
attention of their supervisors, and to work competently.
The Professional Environment of Cost Management
29
Most of the rules in the ethical standards are motivated by a very practical
consideration if these rules were not generally followed in business, then the
economy could come to a halt. The following are examples of the consequences
of not abiding by the standards:
1. Suppose employees could not be trusted with confidential information.
Top managers would therefore be reluctant to distribute confidential
information within the company. This could result to decisions being
made based on incomplete information and could lead to deterioration of
operations.
Suppose employees accept bribes from suppliers. Then contracts would
tend to go to suppliers who pay the highest bribe rather than to the most
competent suppliers. Would you like to fly in an airplane whose wings
were made by the subcontractor who was willing to pay the highest bribe
to a purchasing agent?
2
3. Suppose the CEOs or presidents of companies routinely lied in their annual
reports to shareholders and grossly distorted financial statements. If the
basic integrity of the company's financial statement could not be relied on,
investors and creditors would have little basis for making informed
decisions. Rational investors would suspect the worst and would pay less
for securities issued by companies. As a result, less funds would be
available for productive investments and many firms might be unable to
raise any funds at all. This ultimately, would lead. to slower economic
growth, fewer goods and services, and higher prices.
As these examples suggest, if ethical standards were not generally adhered to, there
would be undesirable consequences for everyone. Following ethical rules such as
those in the Standards of Ethical Conduct for Practitioners of Management
Accounting and Financial Management is not just a matter of being "nice"; it is
absolutely essential for the smooth functioning of an advanced market economy.

30 CopNer
gure 2: Standards of Ethical Conduet for Practitioners of Managenment
Accounting and Financial Management
rcttioners of management accounting and financial management have an obligation
ene publiC, their proession, the organization they serve, and themselves, to maintain
ne nghest standards of ethical conduct. In recognition of this obligation, the Institute
ONaagement Accountants has promulgated the following standards of ethical conduct
O prcttoners of management accounting and financial management. Adherence to
nese standards, both domestically and intemationally, is integral to achieving the
Coectves of Management Accounting. Practitioners of management accountng and
tancal management shall not commit acts contrary to these standards nor shall they
condone the commission of such acts by others within their organizations
Competence Practtioners of management accounting and financial management
have a responsibility to
Maintain an appropriate level of professional competence by ongoing development
of their knowledge and skills.
Perform their professional duties in accordance with relevant laws, regulations, and
technical standards
Prepare complete and clear reports and recommendations after appropriate analysis
of relevant and reliable infomation.
Confidentiality. Practitioners of management accounting and financial management
have a responsibility to:
Refrain from disclosing confidential information acquired in the course of their work
except when authorized, unless legally obligated to do so.
Inform subordinates as appropriate regarding the confidentiality of infomation
acquired in the course of their work and monitor their activities to assure the
maintenance of that confidentiality.
Refrain from using or appearing to use confidential information acquired in the course
of their work for unethical or illegal advantage either personally or through third
parties
Integrity. Practitioners of management accounting and financial management have a
responsibility to:
Avoid actual or apparent conflicts of interest and advise all appropriate parties of any
potential conflict.
Refrain from engaging in any activity that would prejudice their ability to carry out their
duties ethically
Refuse any gift, favor, or hospitality that would infiuence or would appear to influence
their actions

The Professional Environment of Cost Management

Refrain from either actively or passively Subverting the attainment of the
organization's legitimate and ethical objectives
Recognize and communicate professional limitations or other constraints that would
preclude responsibility judgment or successful performance of an activity
Communicate unfavorable as well as favorable information and professIonal
judgments or opinions.
Refrain from engaging in or supporting any activity that would discredit the prolession
Objectivity. Pracitioners of management accounting and financial managerment have
a responsibility to:
Communicate information fairly and objectively
.Disclose fully all relevant information that could reasonably be expected to intluence
an intended users understanding of the reports, comments, and recommendations
presented.
Resolution of Ethical Conflict. In applying the standards of ethical conduct,
practitioners of management accounting and financial management may encounter
problems in identifying unethical behavior or in resolving an ethical conflict. When faced
with significant ethical issues, practitioners of management accounting and financial
management should follow the established policies of the organization bearing on the
resolution of such conflict. If these policies do not resolve the ethical conflict, such
practitioner should consider the following courses of action:
Discuss such problems with the immediate superior except when it appears that the
superior is involved, in which case the problem should be presented initially to the
next higher managerial level. If a satisfactory resolution cannot be achieved when
the problem is initially presented, submit the issues to the next higher managerial
level.
.If the immediate superior is the chief executive officer, or equivalent, the acceptable
reviewing authority may be a group such as the audit committee, executive
committee, board of directors, b0ard of trustees, or owners. Contact with levels
above the immediate superior should be initiated only with the superior's knowledge,
assuming the superior is not involved.
communication of such problems to authorities or individuals not employed or
engaged by the organization is not considered appropriate
Clarify relevant ethical issues by confidential discuSsion with an objective advisor
(e.g, IMA Ethics Counseling Service) to obtain a better understanding of possible
courses of action.
Except where legally prescribed,
Consult your own attomey as to legal obligations and rights conceming the ethical
conflict.
If the ethical conflict still exists after exhausting all levels of internal review, there may
be no other recourse on significant matters than to resign from the organization and

32 Chapter 2
to submit an informative memorandum to an appropriate representative o e
organization. After resignation, depending on the nature of the ethical contlict, It may
also be appropriate to notify other parties
Instute of Management Accountants, formerty National Association of Accountants,
Statements on Management Accounting: Objectives of Management Accounting,
Statement No. 1B, New York, NY, June 17, 1982 as revised in 1997
COMPANY CODE OF CONDUCT
Ethical standards serve a very important practical function in an advanced market
economy. Without widespread adherence to ethical standards, material living
standards would fall. A formèr president of CMA emphasizes the importance of
ethics in business:
Employees like to work for a company that they can trust. Customers
like to deal with an ethically reliable business. Suppliers like to sell to
firms with which they can have a real partnership. Communities are more
likely to cooperate with organizations that deal honestly and fairly with
them. If the business community is to function effectively, all of the
players need to act ethically."
It is unfortunate though, that some companies place so much emphasis on short-
term profits that may make it seem like the only way to get ahead is to act
unethically.
Those who engage in unethical behavior often justify their actions with one or
more of the following reasons:
() the organization expects unethical behavior,
(2) everyone else is unethical, and/or
(3) behaving unethically is the only way to get ahead.
To counter the first justification for unethical behavior, many companies have
adopted formal ethical codes of conduct. These codes are generally broad-based
statements of a company's responsibilities to its employees, its customers, its
suppliers and the community in which the company operates. Codes give broad
guidelines rather than that spell out specific do's and don'ts or suggest proper
behavior in a specific situation. Companies with a strong code of ethics can create
strong customer and employee loyalty. While Iiars and cheats may win on
occasion, their victories are often short-term. Companies in business tfor the long
term find that it pays to treat all of their constituents honestly and loyally

The Professional Emvironment of Cost Management 35

TYPICAL ETHICAL CHALLENGESs
thical issues can contront management accountants in many ways. Here are two
examples
CaseA. Roger Cruz, a management accountant, knows that reporting a
loss for a software division will result in yet another series of layoffs, and
has concerns about the commercial potential of software for which R&D
costs are currently being capitalized as an asset rather than being shown as
an expense for internal reporting purposes. The division manager argues
that the new product will be successfiul and profitable but presents littie
evidence to support her argument. The last two products from this division
have been unsuccessful. The management accountant has many friends i
the division and wants to avoida personal confrontation with the division
manager.
Case B: A packaging supplier, bidding for a new contract, offers the
management accountant of the purchasing company an all-expense paid
weekend to the Boracay Resort. The supplier does not mention the new
contract when giving the invitation. The accountant is not a personal
friend of the supplier. He knows cost issues are critical in approving the
new contract and is concerned that the supplier will ask for details about
bids by competing packaging companies.
In both cases, the management accountant is faced with an ethical dilemma. Case
A involves competence, objectivity, and integrity. The management accountant
should request that the division manager provide credible evidence that the new
product is commercially viable. If the manager does not provide such evidence,
expensing R&D costs in the current period is appropriate. Case B involves
confidentiality and integrity. Ethical isues are not always clear-cut. The supplier
in Case B may have no intention of raising 1SSues associated with the bid
However, the appearance of a conflict of interest in Case B is sufficient for many
companies to prohibit employees from accepting"favors from suppliers. Figure
2-3 includes the IMA's guidance on "Resolution of Ethical Conflict. The
accountant in Case B should discuss the invitation with his immediate supervisor.
t the visit is approved, the supplier should be informed that the invitation has been
officially approved subject to his following corporate policy (which includes the
confidentiality of information)

34 Chapter 2
ODES OF CONDUCT ON THE INTERNATIONAL LEVEL
n July 1990, the International Federation of Accountants (IFAC) in which the
Fhilippines through the PICPA is a member, issued the "Guidelines on Eahics for
Prafessional Accouantants" which governs the activities
accountants throughout the world; regardless of whether they are practicing as
ndependent CPAs, employed in government service or employed as intermal
aceountants. In addition to outlining ethical requirements in matters dealing with
conpetence, objectivin, independence, and confidentiality, the IFAC'S code also
outlines the accountant's ethical responsibilities in matters relating to taxes, fees
and commissions, advertising and solicitation, the handling of monies and cross-
Dorder activities. Where cross-border activities are involved, the IFAC ethical
requirements must be followed if these requirements are stricter than the ethical
requirements of the country in which the work is being performed.
f all professional
The Board of Accountancy of the Professional Regulation Commission approved
the implementation of the Revised Code of Ethics for Professional Accountants in
the Philippines effective January 1, 2016.
INTERNATIONAL CERTIFICATIONS
The three certifications available to management accountants are as follows:
Certificate of Management Accounting (CMA)
Certificate in Public Accounting (CPA)
Certificate in Internal Auditjng (CIA)
CMA. A Certified Management Accountant is one who has passed the rigorous
qualifying examination, has met an experience requirement, and participates in
continuing educations. The CMA Certificate is granted by the Institute
Management Accountants (IMA)
CPA. A Certified Public Accountant is one who has met the pre-qualification
educational requirements, passed the CPA licensure examinations given by the
Professional Regulatory Board of Accountancy and has satisfied all other legal and
regulatory requirements of a public accountant. The CPAs main responsibility is
to provide assurance concerning the reliability of the information contain in the
firm's financial statements
The Professional Environment of Cost Management
CIA. Since one ot the management control responsibilities of the management
accountant is to develop etfective systems to detect and prevent errors and frau
in the accounting records, it is common for the management accountant to have
strong ties to the control-oriented organization such as the Institute of Internal
Auditors (11A) granting Certitication in Intenal Auditing (ClA). To attain the
status of Certified lnternal Auditor an individual must pass a comprehensive
examination designed to ensure technical competence and have the required
number of years of Work experience.
INSTITUTE OF MANAGEMENT ACCOUNTANTS (IMA)
Management accountants have gained status in recent years as they now spend
more time analyzing a company's operations and less with the problems of
recording and computing costs of products. The Institute of Management
Accountants (IMA), the principal organization of management accountants in the
United States, has instituted a program to provide certifications for management
accountants and financial managers. The Certified Management Accountant
(CMA) examination was first given in 1972. A listing of the required subject areas
in the CMA examination indicates the breadth of knowledge expected of the
professional management accountant. The examination consists of the following
four parts: Economics, Finance, and Management; Financial Accounting and
Reporting: Management Reporting, Analysis and Behavioral Issues, and Decision
Analysis and Information Systems. The Certified in Financial Management
(CFM) examination was first given in 1996. The CFM exanmination is similar to
the CMA examination with one major difference: the Financial Accounting and
Reporting section is replaced with Corporate Financial Management. The IMA
also promulgated a code of ethies for management accountants, with is discussed
in the previous section.
The Institute of Management Accounting (IMA) is a professional organization that
publishes the monthly magazine Strategic Finance. Since 1973, the IMA has
conducted a comprehensive examination to test the knowledge a management
accountant must have to be successful in a complex and fast-changing business
world. More than 3,000 individuals take the exam cach year. Those who pass the
exam are issued a Certificate in Management Accounting and are proud to indicate
the designation CMA on resumes and business cards. For details on student and
professional memberships in the IMA and for information on the CMA
examination, visit the IMA Web site.

36
Chapter 2
One of contributions of the IMA is the development of standards of ethical conduct
and maintenance of an ethics hotline that members can call to discuss ethical
conflicts. One may also visit the IMA website to review these ethical standards.
PHILIPPINE ASSOCIATION OF MANAGEMENT ACcOUNTANTS
(PAMA)
PAMA was established in 1972 as the National Association of Accountants (NAA)
Philippine Chapter, Inc. It is affiliated with NAA in New York. It was founded
primarily to provide its members with educational and professional activities that
Suppiement in the knowledge of management accounting practices and methods.
Monthly technical meetings, seminars and workshops are held to present relevant
and current topics by leading speakers from the government, private and
educational sectors. The open forum provides the nerve for the exchange of ideas
and experiences among the participants and the speakers. Publication of technical
materials is also part of the Association's efforts to service its members.
To propagate and professionalize Management Accounting in the Philippines,
PAMA conducts the Certificate in Management Accounting (CMA) Program
through its continuing education arm, the Philippine Institute of Management
Accounting (PIMA). Basic objectives of the program are
1. To establish management accounting as a recognized profession by
identifying the role of the management accountant and the underlying
body of knowledge, and by outlining a course of study by which such
knowledge can be acquired.
2. To foster higher educational standards in the field of management
accounting.
3. To assist employees, educators and students by establishing an objective
measure of an individuals' knowledge and competence in the field of
management accounting.