Management accounting - Essay Example

Comments (0) Cite this document
Summary
Management accounting Table of Content Abstract 3 Introduction 3 Desirability and Effectiveness of accounting information for organizational control 4 Accuracy, Scope and Faithfulness of accounting information 7 Implication of accounting information for management control 9 Control vs…
Download full paperFile format: .doc, available for editing
GRAB THE BEST PAPER93.1% of users find it useful
Management accounting
Read TextPreview

Extract of sample "Management accounting"

Download file to see previous pages But, desirability and effectiveness of accounting for organization control is a critical issue because accounting procedures consists of few integrative devices of organizations where business activities are not only drawn together by values but those are integrated in a quantitative manner. So, accounting is most efficient tool of organizational control system where standard qualitative procedures are followed to evaluate qualitative performance of the organizations for management control over the organizations. These facilitates other external stakeholders of the organizations like investors, creditors etc. for their valuable financial decision making which are highly depends on actual performance of the organizations. So, this study analyzes the effectiveness or relevance, desirability, faithfulness or reliability of accounting information for management control over organizations. Introduction Organizations show stable and consistent types of behaviour in interaction with the business environment which is consistently changing. They have wide range of external influences from external business environment but have enough capability to change internally to protect their integrity. This stability and flexibility of organizational internal behaviour and control possess through effective and integrative control mechanism. One of the most important control mechanisms of organizational is internal accounting system. This consists of integrative process of accounting for implementation of accounting information in management control. So, management accounting systems has major importance in organizations as it consists of some integrative mechanisms that are capable for summarizing the qualitative effect of organizational actions or activities in quantitative values. This study review the major functions of accounting information that helps the management in the area of integrative process of organizational control. Efficient accounting provides integrative language for analysing the impact of diverse internal and external influences on organizations that have substantial positive or negative impact on organizational performance. Nature of organizational control with respect to implication accounting information is qualitatively reviewed in this paper to assess the necessary conditions for control. These conditions are derived and applied in management control. Main objective of accounting policy is to produce fair valued accounting information that is highly reliable and relevant to the purpose and objectives of financials statement (WBS, 2012). The extent of desirability and effectiveness of accounting information are analysed with respect to management control and strategic decision making process. Further, scope of faithful or reliable accounting information on organizational control by management is also analysed. Again, measurement process of organizational performance both quantitative and qualitative is analysed with reference to the implication of relevant and reliable accounting information in organizational performance measurement and essential internal reconstruction with respect to change in external business environment. Desirability and Effectiveness of accounting information for organizational control There are two broad purpose of accounting information, external and internal. External purpose includes the investment decision making by the shareholders and potential new investors of an organization, credit ...Download file to see next pagesRead More
Cite this document
  • APA
  • MLA
  • CHICAGO
(“Management accounting Essay Example | Topics and Well Written Essays - 3000 words”, n.d.)
Management accounting Essay Example | Topics and Well Written Essays - 3000 words. Retrieved from https://studentshare.org/management/1400662-management-accounting
(Management Accounting Essay Example | Topics and Well Written Essays - 3000 Words)
Management Accounting Essay Example | Topics and Well Written Essays - 3000 Words. https://studentshare.org/management/1400662-management-accounting.
“Management Accounting Essay Example | Topics and Well Written Essays - 3000 Words”, n.d. https://studentshare.org/management/1400662-management-accounting.
  • Cited: 0 times
Comments (0)
Click to create a comment or rate a document

CHECK THESE SAMPLES OF Management accounting

Management Accounting

...?Management accounting is an internal process that enables managers to make business decisions. The process of management accounting combines data from both the internal environment and the external environment in order to generate reports as required by the different department heads. Thus the sources of data are both external and internal. The data are crunched using a variety of analytical tools such as the breakeven analysis in order to arrive at management decisions. Therefore management accounting plays an important role in the organizational decision making process. The role of...
5 Pages(1250 words)Research Paper

Management accounting

...?Running Head: Management Accounting Management Accounting [Institute’s Management Accounting Product cost is the total of costs associated with direct materials, direct labor, and manufacturing overhead used in making a product. However, simple as they may sound, product costs are very important to make crucial decisions related to a product. As important as product cost is, it is quite difficult to calculate it because of the fact that they are not the only costs that the company incurs. Apart from these, a company incurs many indirect costs as well. Human resource, IT-support and other administrative and management...
10 Pages(2500 words)Essay

Management Accounting

...? Management Accounting Management Accounting Management accounting is not a specific system of accounts, but could be any form of accounting which enables a business to be conducted more effectively and efficiently. Management accounting in the words of Robert S. Kaplan, is a system that collects, classifies, summaries, analyses and reports information that will assist managers in their decision making and control activities (Institute of cost and works Accountants of India, n. d, p.4) Accounting may be defined as “the art of recording, classifying, and summarizing ... transactions and events and interpreting the results thereof” (Introduction to managerial accounting, n. d, p.2). Two types of accounting are usually taking place... in...
4 Pages(1000 words)Research Paper

Management accounting

...?Management Accounting MANAGEMENT ACCOUNTING Administrative Coordination – Chandler Chandler (1977) suggested that Management Information System is one of the results of the scope and scale that business is conducted. Specifically, the multi-divisional forms of business, which are the results of the emergence of large-scale business, led to a need for developing new forms of accounting. Furthermore, the strategic developments that were taking place occasioned new managerial structures, which in turn brought about the need to redesign the accounting system – these changes led to differentiation of management accounting on one hand and financial accounting on the other hand. Methods such as standard costing and budgetary control... are...
6 Pages(1500 words)Essay

Management accounting

...? Management Accounting Affiliation: Management Accounting Management is a vital function in the company it is responsible for a majority of actions in the company, for example; directing, controlling, planning and coordination. Once a management function is administered in an organization it remains permanent since it increases the firm’s efficiency in all ways. In the modern world, management is present in approximately 90% of the firms currently in operation. Management has a life on its own in the firm since it grows with time through key improvements and updates in the firm (Earl, Garrison & Noreen,...
6 Pages(1500 words)Essay

Management accounting

...? Management via Accounting Introduction The modern firm is faced with so many challenges which threaten to bring it to a halt. This has left the modern manager with the very important and daunting role of making sure that the organisation stays on course and that all dangers are put at bay. The modern organisation has therefore been able to come up with very useful management principles that help in making sure that they can survive in a very competitive market without having to worry about failure. One of these management tools is the management-via-accounting strategy which allows the managers and the...
6 Pages(1500 words)Essay

Management Accounting

...? Management via Accounting Management accounting is the process through which information concerning the economic activity in an organization is measured and reported, in order for managers to utilize it in planning, performance evaluation, as well as, the control of operations. It can also be said to be a combination of accounting finance, as well as, management with the aim driving a business that is successful with leading edge techniques. The system of management accounting in most cases feeds into the system of financial accounting. The system of product costing is...
6 Pages(1500 words)Essay

Management Accounting

...Management Accounting An Overview to Cost Accounting Cost accounting is a very essential aspect of every business organization. In the simplest sense, cost accounting can be defined as “process of tracking, recording and analyzing costs associated with the activity of an organization, where cost is defined as required time or resources (Cost Accounting 2006).” In essense, cost accounting is a field in management accounting which is tasked to give numerical values or figures to each activity in a companys supply chain. The method which is used by a firm has a huge impact in the operation of a business organization as the costing system serves as the basis for major organizational decisions. The facts discussed above give rise... to the...
4 Pages(1000 words)Essay

Management accounting

...Accounting Report Introduction: This report aims at presenting the master budget plan for the company – “The Crazy but Awesome Guide to London” (selling books). The business involves printing the pages, preparing the cover and putting them together to get the finished book. ‘XYZ’ will be registered as a ‘Limited Liability Company’ with owners including ABC, XYZ, and GHI. The initial operations of the company will be headquartered at XYZ, London and the books will be distributed throughout London. Target Markets: The company primarily focuses on the target market of tourists, children and student groups on trips to London and also the occasional visitors to London from different parts of the United Kingdom and Europe....
6 Pages(1500 words)Essay

Management Accounting

...Running Head: Management Accounting Management Accounting Submitted by: XXXXXXX Number: XXXXXXXXX XXXXXXXXX XX – XX – 2010 University of XXXXXXXXX Question 1: a) Discuss the accountant’s statement as a basis for the decision on what to produce, based on absorption costing and discuss two other costing techniques that can be used by the business for ascertaining the cost of a product. The accountant has made the decision to avoid the production of two products (Zodiac and Aston) based on absorption costing. The absorption costing method concentrates on both the fixed as well as the variable costs. Hence this method is not very beneficial...
6 Pages(1500 words)Essay
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.

Let us find you another Essay on topic Management accounting for FREE!

Contact Us