Chapter 12
International management
accounting
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Learning objective
Understand the significance of international management accounting for a
MNE.
Explain the differences between traditional costing system and activity
based costing.
Describe when the MNE could use activity based costing system.
Use different capital investment techniques to make capital investment
decisions.
Describe the differences of management control, tactical control and
transactional control.
Demonstrate an understanding of culture influence on management
control.
Discuss the effect of Currency fluctuation on MNEs.
Explain performance evaluation system within a multinational corporation.
Distinguish performance valuation methods between economic value
added and balanced scorecard.
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12.1 International management
accounting
Management accounting serves both to provi
de information to management and to be used
by management as a tool for ensuring that em
ployees actions and objectives are aligned wit
h those of the firm.
年
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12.2 Costing system
Traditional costing system
Activity based costing (ABC)
Traditional costing system
In traditional costing system, allocation
of indirect costs is made based on some
common allocation bases such as labor
hour, machine hour.
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