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 (Friedl, Hans-Ulrich, & Burkhard, 2005). Management accounting can be described as the use of various accounting information by managers of an organization to assist them in making proper decisions in situations that they may be faced with. Therefore, strategic management accounting can be considered to be a combination of these two ideas whereby management accounting is used to enhance the strategic decision making that takes place in an organization, in a bid to increase the chances of success in a business (Mulcaster, 2009). ...
The management processes that take place here deal with handling the organization as a whole, including the various enterprises that it may be involved with. Corporate strategic management accounting involves the handling of all businesses to ensure that there is no enterprise that may be causing the organization to suffer a loss (Friedl, Hans-Ulrich, & Burkhard, 2005). This level of management accounting is handled by the top brass of the organization, and decisions are made by top officials within the organization, such as members of the board of directors with assistance of advisors familiar with the situation that they are facing. Business strategic management accounting – This level of strategic management accounting deals with businesses belonging to an organization on a personal level. This is to say that it handles the management (Mulcaster, 2009) of the various businesses that an organization may be involved with according to the particular needs and situations that the business may be faced with. This level of strategic management accounting is also handled by top level management, but in this case management is of that particular business such as the company CEO and heads of departments (Armstrong & Greene, 2007). This level of management allows the organization to concentrate on their various enterprises in a manner that allows them to address the various problems that they may face on a one-on-one level that allows the involved parties to figure out the proper solutions needed to take care of the complications that may have arisen (Clinton & Van der Merwe, 2006). This is an essential practice in any organization as a chain is only as strong as its weakest link, and thus all the enterprises of an
Management is an integral part of business and its practices and without it, an enterprise is not able to function efficiently in its various operations. …
Accountability 12 Conclusion 13 Reference 15 Abstract This study represents one of the most important areas of management accounting i.e. desirability and effectiveness of accounting for management control. Accounting is the most effective device used by managers and management for organizational control.
Management accounting systems ideally provide information regarding all aspects of an organisation’s transactions; by covering all spectrums of the organisation they represent an important source of information for decision making.
Management accounting is considered to be useful when it properly displays an external image and a futuristic picture for an organisation. Strategic Management Accounting on the other hand can be distinguished from other management accounting activities through its extensive external orientation; this extensive external orientation includes focus towards customers, competitors, suppliers and all other stakeholders that get affected by the organisation’s normal course of business.
According to the author, management accounting has failed in the application of qualitative features of management as well as the strategic thinking in management. As a result of the failure of management accounting, strategic management has been introduced in the profession of accounting hoping it will be effective in areas of management.
Performance measures can be considered as metrics for monitoring the success of an activity and competence of the workforce in utilizing the available resources. Competence can be attained by maximising the output with the minimum number of resources. Improvement in competence can be achieved by providing fewer inputs that can be used to produce a particular amount of output.
A fusing connection among the variety of visions is involve in captivating a strategic direction, explanation and study of management accounting information, and rival's performances proposes the basic extent in favour of contrast.
Management accountants are perfectly trained and they have this ability potential and expertise to contribute along with the strategies and with the evaluating process to over those decision-making problems that they have in the market.
Further, the strategic decision-making issues related to the different factors like competitive pricing of products or services, the operational strategies of the business, the manufacture and development of products and the product costing are discussed in detail.
The conclusion from this study states that outsourcing is now a mainstream phenomenon and is affecting more and more workers, in nearly every knowledge-based sector. Better outsourcing management helps in optimizing your business for maximum performance. A systematic outsourcing management will surely produce the following benefits and improve your outsourcing business.
Formulation of strategies necessitates a proper collaboration with all department like operation, marketing, HR, R&D, finance & accounting etc. These departments are the treasure house of potential information about the current
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