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Management Accounting and Finance in U.K. Museums and Music Organisations - Dissertation Example
This study aims to find the accounting techniques that are being followed in the music and art organizations and museums of United Kingdom. The study found that they use techniques like variance analysis; activity based costing, budgeting and other methods in order to conduct the management accounting efficiently. …
The study reveals that the organizations are now looking at additional sources of income by organizing events. The events that they are planning to launch are expected to generate high amount of income for the organization. The management of the art organization have decided not only to sell tickets of the events in order to generate revenue but also look for sponsorship of the event. In this context, before organizing any event the management is setting targets in form of budget for the whole event. This budget is set as such the expected expense that the organization will be incurring and income that they will be generating are estimated. This gives them a clear idea regarding the revenue that they will be generating. Accounting techniques like variance analysis, activity based costing, budgeting and other methods are used in order to conduct the management accounting efficiently. These methods have been proved effective in achieving the future goals of the organization. This reveals that the art organization and museums are not only focussing on generating additional income but also creating satisfaction among the artists and the customers.
This essay makes a conclusion that the main challenge for the art organization is that the economic crisis has affected the funding which is very important for the organizations that are not running for profitable ventures. These challenges have made the organizations to shift their focus from profit sharing model to profit generating model. On shifting to this model the accounting techniques used by the organization has also changed. ...