PowerPoint Slides: Management Science - Introduction & Chapter 1
(For BSA Students)
Slide 1: Title Slide
Title: Introduction to Management Science
Subtitle: Chapter 1 Overview for BS Accountancy Students
Presented by: [Your Name]
Date: [Insert Date]
Slide 2: What is Management Science?
Management Science is an interdisciplinary field that uses
mathematical models, statistical methods, and analytical tools to solve
business problems and support decision-making.
Also known as Operations Research or Decision Science.
It transforms complex real-world problems into structured, data-driven
solutions.
Example: A company facing production delays can use management
science to develop a schedule that minimizes downtime.
Slide 3: Why It Matters to BSA Students
Strengthens decision-making in areas like budgeting, tax planning,
audit procedures, and internal controls.
Equips future accountants with the ability to analyze data more deeply
and make evidence-based financial recommendations.
Encourages efficiency and cost-effectiveness in resource management.
Example: An accountant might use forecasting techniques to predict
future cash flow and advise the business on managing expenses.
Slide 4: Management Science vs. Accountancy
Management Science Accountancy
Focuses on models and decision Focuses on financial data and reports
tools
Predicts and optimizes outcomes Records and interprets outcomes
Forward-looking Past and present focused
Data-driven decisions Rule-based financial reporting
Slide 5: Steps in Management Science Approach
1. Identify the problem: Clearly define the issue or decision to be made
(e.g., minimize costs in production).
2. Formulate a model: Create a mathematical or logical representation
of the problem (e.g., cost function).
3. Gather relevant data: Collect information necessary for analysis
(e.g., labor costs, material prices).
4. Solve the model: Apply analytical techniques to find optimal or
feasible solutions.
5. Test the solution: Verify if the solution is practical in the real-world
scenario.
6. Implement the decision: Apply the solution and monitor its
effectiveness.
Slide 6: Types of Models (Expanded)
Descriptive Models:
o These explain what is currently happening within a system or
organization.
o They help visualize the structure of a situation without
necessarily suggesting changes.
o Example: A company’s income statement and balance sheet
show current financial status, making them descriptive tools for
accountants.
Predictive Models:
o These forecast what is likely to happen based on trends and
historical data.
o They use statistical techniques like regression analysis.
o Example: An accountant predicting next quarter’s revenue
using past sales data.
Prescriptive Models:
o These recommend the best course of action from available
alternatives.
o They often involve optimization techniques.
o Example: Using linear programming to determine the most cost-
effective product mix for maximizing profit.
Slide 7: Common Techniques (Expanded with Examples)
Linear Programming:
o A mathematical approach to find the best outcome under limited
resources.
o Example: A bakery wants to maximize profit using limited
ingredients and time. Linear programming helps allocate
resources to the most profitable products.
Forecasting:
o Uses historical data to predict future events or trends.
o Techniques include time series analysis, moving averages, and
exponential smoothing.
o Example: A retail store forecasting sales for the holiday season
to manage inventory.
Simulation:
o Creates a virtual model of a real system to test different
scenarios without actual risk.
o Example: Simulating customer flow in a bank to improve service
time and reduce queues.
Inventory Models:
o Help determine the optimal order quantity and timing to reduce
holding and shortage costs.
o Example: A store calculating the Economic Order Quantity
(EOQ) to avoid overstocking or running out of items.
Decision Analysis:
o Involves decision trees, payoff tables, and risk assessments to
evaluate options under uncertainty.
o Example: A manager evaluating whether to expand a business
or invest in new technology using a decision tree.
Slide 8: Quote for Reflection
“If accounting gives you the numbers, management science shows you what
to do with them.”
Slide 9: Summary
Management Science empowers better, data-driven decisions.
It enhances the role of accountants in planning, advising, and
optimizing business operations.
Learning these tools gives BSA students a competitive edge in both
public and corporate accounting roles.
Slide 10: Questions & Discussion
What management science tools have you encountered before?
Can you think of a real-life situation where these models could be
useful in your future career?
End of Presentation
