Issues in Management Accounting - Assignment Example

Accounting Theory Name Institution Affiliation Date Question 1. Why is innovation regarded as an important research topic? According to Mckeown (2014), innovation is considered as a research topic for its nature to develop new products as well as Innovations. Technology is put in test in the innovation field, with, many technological advancements and discoveries all emanating from the widely diverse field of innovation. Many scientists opt to research on innovation since that is the only unexplored area where many discoveries made. Every scientist bid in research aims to discover or invent new advancement in the fields they specialise in (Mckeown, 2014). However, innovation is the backbone of all technological advancement, all key and new discoveries that the world has ever made. As Mckeown. (2014) asserts, it is under innovation research that new development and also continued advancement made. All firms, companies and other business oriented entities adopt the innovations as they are the wealthiest aspects of businesses making more advancements in revenues allocations. In the modern age, the advancements in technology which form the baseline of the innovations are the key makers of business advancements in many companies in the modern world. Innovations drive businesses, so many businesses and other enterprises are more conversant with it and making it more important than others (Mckeown, 2014). Researchers on innovations are more considered and adopted by many scientists as the core driver of the future technology discoveries. Question 2. The Role for Theory Development According to Hippel (2005), accounting theory is a definite and a direction principle, which sets out the regulations of all accounting basics in the economy. There are several accounting principles in existence, for instance, the United States and some of the Latin America populations use the accepted accounting principles, the (GAAP). This principle is critical in all accounting and financial reporting systems as its sets out the best requisite accounting basics the similarity account for all the financial transactions of any given company (Hippel (2005). In other words, the accounting theory in existence helps the accounting principles become more transparent as well as open in their reporting. Hippel (2005) ascertains that accounting theories are usually framed to analyse the accounting practise. Whenever any company conducts either internal or external auditing, the accounting methods are monitored by the accounting method, the accounting theory acts as the overseer in assessing the accounting practises shown in all companies as well as other reporting structures (Hippel, 2005). The method monitors the accounting practices majorly in macrostructures, such as the country economy movers. According to Sharma (2008), accounting theory is based on the sound reasoning, and therefore, it is more scientific. The accounting theory majorly encourages the application of reasonable thinking while making accounting decisions as well as other related thinking. The theory discourages the issue of the accepted principle while resisting the efforts to supply the set rules communally. The importance of the theory is that majorly the accounting practise is made more practical, with a critical thinking formally adopted in the accounting theory practise. The theory, in this case, helps one identify the business potential and the amounts of profit and losses of a company (Sharma, 2008). The theory, in this instance, encourage the use of all the commercial properties of any business. This move helps monitor the financial progress of the company. Question 3. The importance of innovations As Sharma (2008) chronicles, most businesses want to be innovative in their operations, every department as well as every employee. Innovations place many companies as well as firms in a prime location to achieve more. Most businesses, approximately 90%, consider innovation as a top priority for them. The importance of innovations is however increasing, and its significance is surprisingly growing in many businesses. However. The best aspect of innovation is that it grows every day, and it’s applicable in all industries (Sharma, 2008). Any company in any industry can indulge in innovations in their organisation, from the food industry to electronics, and all the industries in the economy. According to Griffin (2008), the new innovative importance of the product innovation. Product innovation id the ability of a company to come up with a new product, different from the one in existence in the market. This ability is brought up by the company indulging in technological advancement as well as the innovative ways of bringing new products to the market. New products being considered economy developers since they are new entrants to keep a new trading chain (Griffin, 2008). The product innovation is, therefore, an important aspect, a mover of an economy and similarly a new company discovery, to add more of its revenues to sales. Griffin (2008) chronicles that another important aspect of innovation is the benefits accrued to the process innovation, process innovation is yet another type of innovation, majorly made possible by the companies investing in innovating their processes in researcher, the methods in which they make their products. Process innovation importance reached when the process comprising of the implementation of a new product design completely enhancing the production or the delivery method. Griffin (2008) asserts that researches indicate that the planned efforts of the measures combining the ideas, objects as well as the people in most cases lead to the innovations. This innovation brings up new business ideas as and also the special resolutions to solve new world problems. For instance, the professional software Industry is majorly dominated by technological innovations. Everyone in a while the Microsoft Company innovatively comes up with a more efficient Microsoft software version (Griffin, 2008). This move has been brought about by the innovativeness nature of the withy company man y ideas bringing up a more efficient societal accepted software’s for computer use. Griffin (2008) ascertains that innovation is a major element in easing competition from then key industry competitors. Similarly, the competition itself is a key role player in making the companies more innovative in making new discoveries, processes and products to help the fight off the stiff competition. However, the innovativeness nature of a company determined the far it can go about the productivity. Innovation improves productivity, regarding quality as well as improvement of the customer tastes and preferences. Therefore, change helps, many companies grow business wise (Griffin, 2008). The companies innovatively design new methods of management means which will cater for the efficient environment to facilitate company growth, in production as well as the employee welfare. Question 4. Incentives and Innovation Griffin (2008) states that financial incentives are part of the governments trending policies designed to help and steer change grow in specific regions. Different governments, national, federal; state as well as other govern metres are increasingly offering incentives to different service in a bid to provide the best environment for innovators to grow their innovations. Most projects given the green light in the incentive and innovation are the technologically abled innovation (Griffin, 2008). Many companies are increasingly using the advantage of the government t innovations for their improvement and the general economy of the country. According to Qin (2009), incentives given to the accounting forms can help smoothen the wat innovation is incorporated in the ways they deal with. Accounting operational like internal auditing still have rooms for improvements, and therefore, the ned for innovation is highly required to give such room an ability of innovation, Innovation in the auditing theories can help smoothen the way companies conduct their internal audits and reduce the long lines and long duration taken to di the process (Qin, 2009). However, incentives introduction to the accounting can help the process a better one, other technological aspects of accounting are well dealt with effectively by the government introducing the incentives. Qin (2009) asserts that there are several types of incentives that the government can offer to its innovators. From federal to the state and local governments. These are the R&D taxation and other biotech-specific subsidies. The taxation incentives are aims at reducing the amount of taxation imposes d in the innovative ideas, processes as well as products. Different government sin the glove ae increasingly improving their companies’ ability to be innovative via imposing a less taxation ion any innovative ideas (Qin, 2009). This incentive increases the risk-taking of enterprises towards becoming innovative, since investing in innovation by companies is highly risky. Qin (2009) ascertains that another way the government imposes incentives to different creative ideas in the economy. This incentive highly encourages the computes in developing their ideas products and processes. Technologically, the subsidies are well encouraging the nature of firms risk taking to invest innovatively. Different forms of subsidies offered by the governments, some of them including the free marketing service for the innovative idea. Most companies prefer the subsidies offer by the governments they are more helpful in attaining their innovation then reduces taxation (Qin, 2009). Different merchandise and the purchasing the equipment is yet another viable subsidy offered by the governments as an incentive offer by the governments. According to Qin (2009), incentives are helpful to the innovation ideas in the companies. Innovation required external supports, either from the government of private sector, the subsidy and other stakeholders in the company. Therefore, with incentives, innovation can be cultivated to attain greater heights, produce more viable products which can change the way of living by many. Innovation makes the companies and their managers have broad enough and creative ideas, visions and targets for their companies (Qin, 2009). This move makes it possible for the companies to formulate big ideas for more successful products. References Griffin, R. (2008). Fundamentals of management. Boston: Houghton Mifflin Co. Hippel, E. (2005). Democratizing innovation. Cambridge, Mass: MIT Press. Mckeown, M. (2014). The innovation book: how to manage ideas and execution for outstanding results. Harlow, England New York: Pearson. Qin, Z. (2009). Introduction to e-commerce. Berlin London: Springer. Sharma, D. (2008). Foundations of IT. New Delhi: Excel Books. Read More