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Moving Away from Traditional Transaction-Based Financial Information to Technologically Based Non-Financial Information - Essay Example
Author : sabernathy
Finance & Accounting
Pages 7 (1757 words)
Name Instructor Task Date Moving Away From Traditional Transaction-Based Financial Information to Technologically Based Non-Financial Information According to CIMA, The Chartered Institutes Of Management Accounts, the field of management accounting has been defined as involving the processes of identifying, measuring, accumulating, analyzing, preparing, evaluating and controlling a business entity for the purpose of ensuring that resources are appropriately and accountably used (Cooper, 2009)…
Many businesses have in the recent times shifted their focus from using the traditional transaction-based financial information towards using technologically based non-financial information (Agresti, 2002). This has been largely due to the fact that the traditional approaches usually limit themselves through the definition of their cost behaviors in the terms of their production along with sales level (Burns and Baldvinsdottir, 2007). The traditional methods were mostly utilized for the purposes of giving reports when the valuations of the items in their income statements and balance sheets (Zhou, 2012). The method also had so many restrictions as the statements prepared were supposed to comply with the GAAP principles. As a result of being outdated in their practices the governing body of the management discipline brought more technological advances that would have helped in resolving the issue (Cooper, 2009). Additionally, in the recent past there has been a great shift by the managements of businesses across the globe towards the use of technologically based non-financial pieces of information (Burns and Baldvinsdottir, 2007). ...