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Finance & Accounting
Pages 6 (1506 words)
MANAGEMENT ACCOUNTING (Author’s name) (Institutional Affiliation) Management accounting combines finance, accounting and management with other leading edge techniques necessary for managing a successful business. The fact that organizations are made of people the management structure must accomplish its objectives by working through the people…
17), management invented modern business. Early forms of management accounting integrated both decision-making and analysis, going beyond financial and operational performance data. Chandler stated that before managerial, there was no equivalent of the modem multi-unit organization as there was nothing remotely like the divisional Wed corporation (Chandler 1977, pg.18). Chandler states that the managerial revolution invents something new which it is frequently misunderstood as the "modern business enterprise". This did nothing less than overturn the old economic world which is a world within which he tells much basic economic theory is still distressingly rooted. The new form of management was accelerated by industrial revolutions in the 19th century. After the 20th century the impending requirements by financial accounting in most organizations developed new pressures placed on the capital markets, creditors and taxation (Schaltegger et al 2006, pg. 72). Decentralization involves the distribution of decision-making authority within the organization by offering managers at different operation levels the authority to make decisions relating to their areas of focus. In the new form of management that was developed around 1850, decentralization of organizations is a key issue in its performance. ...
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