Strategic Management Accounting: the reasons for the lower than expected profits of Manac Plc

Strategic Management Accounting: the reasons for the lower than expected profits of Manac Plc Essay example
Masters
Essay
Finance & Accounting
Pages 11 (2761 words)
Download 0
For quite several years, the concept of SMA was supported to be a prospective field of growth which was capable of improving the upcoming contribution towards the management accounting. SMA was defined to be the condition of factual information for the reason of encouraging strategic decisions taken in an organisation (Collier, 2003)…

Introduction

With regard to this particular decision, it could be stated that the condition relating to the nature of the information which encourages the vital decisions that contributes towards the long-term success of an organisation could be stated to be the function of SMA. The vital decisions entail the implementation of costing information which is activity-based with the objective of offering data associated with the product mix and the introduction as well as rejection of decisions. It has been also stated that the methods related to strategic accounting were structured to provide encouragement to the competitive strategy related to an organisation on the whole. In this study, the reasons for the lower than expected profits of Manac Plc would analysed with the help of models and concepts affecting pricing decisions (Drury, 2007).
Standard Costing & Absorption Costing
Standard costing has been referred to be a tool of management which is put to use by the organisations for enhancing numerous chief management processes. The chief processes related to management include comprehending and ascertaining the unit costs for products, determining the costs as well as prices, accounting incomes, anticipated earnings or inputs and costs, preparing a structure for resource contributions like direct labour and direct materials and managing the discrepancies related to performance. There are various steps involved in the process of standard costing. The process initially ascertains the standard unit costs. This is attained with the help of evaluating extensively the contributions and the methods that are considered to be necessary for the production of a single unit (Vallely, 2011). ...
Download paper
Not exactly what you need?

Related papers

Finance and Accounting Essay: An analisys of Management Accounting
So, this report includes various models and concepts affecting the pricing decisions, the role of standard costing and variance analysis in management accounting and “the advantages and disadvantages of introducing an Activity Based Costing system to replace the current Absorption Costing system” (The Models and Concepts Affecting the Pricing Decisions Taken by Organizations, Critically…
Strategic management accounting
The company provides total technical support for the installation of the machinery sold to the global customers to gain their confidence and long-term relation (Funding Universe, n.d.). Renishaw is well recognized for its manufacturing of complex machineries that could help the customers to improve their efficiencies and their potential capacities along with greater quality of the products and…
Strategic Management Accounting
Historically the role of management accounting conferred to operational level budgeting, target setting and control with little or no influence towards strategy development. With the passage of time, this trend has been changed because of Strategic Management Accounting as nowadays this trend and focus has been driven towards strategy formulation and development (Kader et al, 2006). This strategy…
strategic management accounting
It is hoped that, as a new discipline in accounting, strategic management, will be very resourceful to accountants and managers, and that it will improve the relevance of the accounting profession in areas such as strategic thinking and the qualitative features of management (Shah, Muhammad & Malik 2011, p.1). Strategic management accounting (SMA) has been introduced as a field of study in the…
Strategic Management Accounting
Success can be measured by ensuring that the output is as per the desired estimation from the pre-decided input and effort (Rathore, 2009; Siddiqui, 2006). In such situation, responsibility accounting signifies classifying the financial information that is related to the areas associated with the organisational activity. After considering these financial aspects the responsibilities are allocated…
Strategic Management Accounting
Strategic management helps the management to align the financial strategies of the company with other strategies namely the marketing strategies, operational strategies and human resource strategies (Bonaccorsi and Daraio, 2009). Financial management cannot connect with the external and internal requirements of the business, thus it is used only as a fact finding method. Whereas, strategic…
Strategic Management Accounting
It does not really help the managers to assess what is best for the company (Bonaccorsi and Daraio, 2009). For example, the financial management of the company is able to indicate if it is appropriate to take more debt by considering the present liquid status of the company. The decision may not have any link with the short term or long term strategic objective of the company. Thus, financial…