Management Accounting Practices - Essay Example

Strategic management accounting is not incorporated into textbooks within a coherent, consistent framework because of myriad factors. For instance, the integration of strategic and cost alignment has been ineffectively accomplished in the sample in the textbook. However, the most coveted techniques and concepts that can be associated with strategic and management accounting can be implicated in the texts. On the other hand, "controlling" as used in the German-language section describes a more detailed strategic emphasis as compared to "management accounting," as used in the United States textbooks. Strategic management accounting has not been described in a justifiable way in order to eliminate any doubts of reflection in the management accounting textbooks (Hoffjan & Wömpener, 2006). Therefore, the lack of use of vastly recognized understanding is associated with the reluctance of the textbook authors in the usage of "strategic management accounting."
Question 2
There are different ways through which Chief Financial Officers (CFO's) determine management accounting innovation in an organization. According to David Naranjo-Gil, innovation in management accounting is referred to practices and ideas that are viewed as new in their adoption in improving organizational efficiency and performance (Naranjo-Gil, Maas, & Hartmann, 2008). Therefore, CFO's determine and ensure the adoption of these practices by assessing and reporting the required financial and non-financial information in making concrete organizational decisions. The individual variances between CFO's and their respective characteristics dictate the use of organizational innovation in management accounting. According to a dissemination study on management accounting, most public sectors' adoption of management accounting innovations is significantly affected by the central government. As a result, the determination of management accounting innovation by CFO's is based on various political and economic factors.
Question 3
The strategic planning process is a core element in improving organizational efficiency and business operations. According to Gonn K. Weide, there is a vast range of characteristics of the strategic planning process that can be adopted by the management in accomplishing short-term and long-term organizational goals. For instance, effective strategic planning must incorporate communication strategy, a task force, vision and mission statement, values, goals and objectives, activities, an implementation strategy, and a monitoring plan. On the other hand, management accounting plays an imperative role in the aiding competitive decision-making process of an organization. The entire management accounting process involves planning, controlling, and evaluating of company's strategies and business operations (Nevries, Kornetzki, & Weide, 2006). Therefore, management accounting is necessary for the provision of better management and control roles to the managers. As a result, employees and managers are motivated towards the achievement of organizational goals.
Question 4
There were myriad management accounting practices adopted during the British postal reforms put forward by Rowland Hill. According to the pamphlet Post Office Reform, he proposed the institution of a uniform postage charge for all letters received and delivered in the town, or any other town within the British Isles, amounting to one penny for half an ounce. Read More