Relevance of Management Accounting in Today's Society

Relevance of Management Accounting in Today
Undergraduate
Research Paper
Finance & Accounting
Pages 7 (1757 words)
Download 0
Management accounting is one of the modern business terms or functions evolved during the last few decades. Earlier accounting information was limited to the accounts department employees and the top management…

Introduction

Other departments such as production, quality, technical, marketing, engineering, purchasing etc had little information about the accounting procedures and information. However, the development of scientific management techniques in the corporate world stressed the importance of spreading accounting information to the entire departments of an organization to improve the efficiency of the organization. Earlier financial accounting, cost accounting etc were some of the renowned terms in the corporate world; however, at present apart from these accounting systems, management accounting is also gaining prominence.
What is Management accounting?
Management accounting combines accounting, finance and management with the leading edge techniques needed to drive successful businesses. It advises managers about the financial implications of projects, explains the financial consequences of business decisions, formulates business strategy, monitor spending and financial control, conduct internal business audits and explain the impact of the competitive landscape (What is Management accounting?)
Man, material, machine and money are the major resources of an organization which should be managed properly to raise the productivity and efficiency of an organization. All these resources were earlier managed by concerned employees and department managers alone. ...
Download paper
Not exactly what you need?

Related papers

Accounting and Society
In contrast, conventional approaches to regulating the environment characteristically force entities to implement the same pollution control strategies, irrespective of the relative costs to the entities. This can be expensive and equally counterproductive since, although, the approach succeeds in limiting emissions, the attainment of the results is in an unjustifiably pricey way (Oates, Paul and…
Management Accounting
Available at: . Anderson, DR, Sweeny, DJ, Williams, TA & Martin, RK 2007, An introduction to management science: Quantitative approaches to decision making, 12th edn, Cengage Learning. This book is quite helpful in the field of management accounting and the quantitative perspectives in decision making. The book has a great deal…
Financial Accounting. Relevance and Reliability.
Financial information of any company is presented in financial statements. Financial statements are the main components of company’s annual report. These statements need to have fairly representation of the financial details which is responsible for the decision making process of the investors, suppliers, creditors etc. relevance and reliability are two most important characteristics of…
Accounting, Society and Enviroment
In 2006 the Financial Reporting Review Panel extended the requirement of the annual reports to constitute of the review from the director’s of the companies (FRC, 2008). Companies which qualify as small companies are not required to publish annual reviews (PLC, 2013; KPMG, 2006) and medium sized companies are not required to publish their environmental and social policies in their annual reviews…
The Relevance of Strategic Management Accounting
Strategic management can be defined as the process of analyzing various initiatives taken by an organization, involving the resources available to them and performance within their external environments. This is in a bid to realize the mission and vision of the company and its objectives through developing modes of approach that will allow the organization to realize these aspects of its business…
MANAGEMENT ACCOUNTING
external and internal factors. These factors have redefined how management practices or functions are performed across business organizations. In the writings by Burgstahler et al. (2007), they stated that the transformations have largely affected the decision making process since there is a change in the management structure, which has integrated new roles as well as position holders. In…
Accounting and Society
However, no such conclusion was provided within the video as to which perspective is better of the two. This creates a knowledge gap and thus provides the researchers with the opportunity to bridge the gap by setting forth an in depth research regarding the best perspective that should be implemented in accounting practices. Previous literatures have suggested that the arguments in favour of…