StudentShare solutions
Triangle menu

Accounting tools - Essay Example

Not dowloaded yet

Extract of sample
Accounting tools

Most of the companies are getting dominated by the international competition. The primary cause of this competition is demand based supply and widely accepted e-commerce. Since, the utilization of management accounting tools is important for most of the companies with the aim of developing logical and reliable business strategies. The primary features of management accounting are to help the organisation in the area of decision making, control and support strategic planning (Kaplan and Norton, 1996, p.58). In this essay, the researcher will stress on the different aspects of management accounting tools and the effectiveness of management accounting tools. Discuss and evaluate the purpose and effectiveness of management accounting for modern business In the modern business firms, the management accounting is mainly used for taking competitive decision making by collecting, communicating information and processing. This tool helps the management of the organisation to control, evaluate and plan on business process. This tool also relates to the present strategy of the business firm with the existing ones. The function of management accounting is multidimensional and interrelated with the various departments. The mechanism contributes in monitoring different activities in business and helps the businesses to meet the goal of the organisation. In this function, the management and the board is mainly focussed on those activities which are the key drivers of future financial result. This controlling activities influence the corporate governance activities of the organisation. With the help of various analysis report, the management accounting track the lack in control system also and measure the divergence from the expected result. In the variance analysis, the management compares the expected performance with the actual performance (Brickley, Smith and Zimmerman, 2005, p.256). The approval of financial decision also depends on the management accounting decision. Most of the members of the audit committee (at least 40 %) hold the specific qualification. But it has been seen that the common management accounting tools is used by the audit committee rather than the directors of the business firm. In this point of view, at the time of taking financial decisions, management accounting reports are not adequately presented. On the other side, it is noted that the decision of Director is not sufficient for 69 % of the companies. Most of the major financial decisions are taken by the senior management of the company by utilizing the key areas of management accounting tools (Blocher et al. 2010, p.54). Most of the traditional business firms did not evaluate the performance of CEOs and senior management before general annual meetings. The management accounting tools determinates the financial results from various segment of operation that signifies the performance of CEOs. The modern businesses maintain good corporate governance practices by following codes of business practices, compliance to relevant laws and rules and regulation. The corporate behaviour is important to maintain the corporate governance. So, corporate behaviour should be stringent in corporate DNA by maintaining the principals and ethics. The management accounting mechanism sets the standard behaviour for the purpose of hard coding. This mechanism also provides the periodic report which highlights corporate culture monitoring result. On the other side, this is a tool which is a custodian of ethics. So, it is very easy for the business firms to trace the fraud and mal practices. Comprehensive Implementation of Management Accounting Tools: In this part the researcher ...Show more

Summary

Presently the business environment is experiencing transformation from its traditional framework due to the competitive and dynamic nature of the business. Most of the companies are getting dominated by the international competition…
Author : miller41
Accounting tools essay example
Read Text Preview
Save Your Time for More Important Things
Let us write or edit the essay on your topic
"Accounting tools"
with a personal 20% discount.
Grab the best paper

Related Essays

Traditional accounting pricing tools are not fit for the 21st century
The focus in this paper is on pricing strategy as the main part of every business. For any business the key factor is to set a differentiating image in the mind of the customer and once that differentiating factor is set in the minds of the customer one can easily play on prices of the product. However for this purpose one needs to have a grip on appropriate pricing strategy to get the best results.
18 pages (4500 words) Essay
There are limitations, but financial and management accounting perform a fundamental role in the measurement of performance
The organisations are facing fierce competition in the competitive global business environment and the performance is the major determinant of the survival, success or failure of a firm. Organisations employ various tools to measure the performance. It is possible only in an ideal world that organisations have unlimited resources and they are operating in a risk-free environment and they do not need any performance measurement tool.
8 pages (2000 words) Essay
INTERNATIONAL ACCOUNTING - Group Project
In addition to the nature of business transactions, there are many other factors that play vital role in shaping a country’s accounting system. This paper intends to identify the key factors that influence Australian accounting system and practices. Background of Australia The Commonwealth of Australia or simply Australia is the mainland of the Australian continent situates in the Southern Hemisphere.
3 pages (750 words) Essay
Accounting & Finance, Information Tools
Accounting & Finance, Information Tools 1. Explaining each ratio trend whether the ratio or trend indicates strength of the company; a likely weakness, threat, or emerging problem; or a satisfactory condition that management should not view as a strength or weakness Company G current ratio declined from 1.86 in 2011 to 1.79 in 2012 indicating company weakness in at fulfilling creditor’s obligation.
3 pages (750 words) Essay
Management Accounting
Management accounting is a branch of accounting which mainly deals with various managerial aspects. This is primarily handled by the managers within the organization, and it is an essential component in taking appropriate decisions. The concept of management accounting comes under the Management accountant who is responsible for the preparation of financial statements, and management accounting report for appropriate decision making.
4 pages (1000 words) Essay
Inadequacies of accounting ratios as tools of financial analysis
A series of specific guidelines on issues critical to correct interpretation of such accounting ratios is included along with specification of pitfalls. A variety of ratios are used in financial analysis. Without specifying these ratios in detail we can classify their broad financial grouping under short-term solvency or liquidity ratios, long-term solvency or financial leverage ratios, coverage ratios, profitability ratios and market value ratios.
3 pages (750 words) Essay
Business Accounting Ratio analysis is one of the many tools that can be used to evaluate financial performance of business entities
roups (CGS): , petroleum, diamonds and specialty products, stainless steel material, aluminum, base metals , manganese, metallurgical coal, iron ore and energy coal, the company, its world-wide presence is thus easily noticed. With its global oil and gas business that
8 pages (2000 words) Essay
Accounting
benchmark, which serves two purposes – guiding and directing the activities of the firm (planning) and analyzing whether the actual activities are in proper direction (control). Pricing Decisions: Standard cost facilitates decisions as also in decisions involving submission
4 pages (1000 words) Essay
Accounting for managers
As the name suggests the accrual basis of accounting differs from the cash basis of accounting. “Accrual basis accounting means that transactions that change a company’s financial statements are recorded in the periods
1 pages (250 words) Essay
A short essay stating the candidate objectives and interests in pursuing the MAC (master of accounting)
This is done with the appreciation of the fact that accounting handles information that affects the lives of stakeholders both within and beyond organizations. As such,
1 pages (250 words) Essay
Get a custom paper written
by a pro under your requirements!
Win a special DISCOUNT!
Put in your e-mail and click the button with your lucky finger
Your email
YOUR PRIZE:
Apply my DISCOUNT
Comments (0)
Rate this paper:
Thank you! Your comment has been sent and will be posted after moderation