StudentShare solutions
Triangle menu

Management Accounting and the Modern Business Enviroment - Essay Example

Not dowloaded yet

Extract of sample
Management Accounting and the Modern Business Enviroment

It ensures the appropriate use of and accountability for an organization's resources. Management accounting also comprises the responsibility for the preparation of financial reports for the non-management groups such as regulatory agencies and tax authorities. Simply stated, management accounting is the accounting for the planning, control, and decision-making activities of an organization." (Shim & Siegel, pg 1, 1998)
Management accounting presents the executive professionals with the foundation in making educated business decisions that would allow them to be superiorly equipped in their management and be in command of functions. In contrast to financial accountancy information (which, for public companies, is public information), management accounting information is used within an organization (typically for decision-making) and it is generally classified and accessible by a select few. Its foremost focus is on the formulation of strategies, planning and assembly of business activities and the optimal exploitation of resources. The aspects of decision making, protection of assets and the assistance in making of financial reports are also amongst the fundamental principles working behind the concept of management accounting.
The accounting practitioners and mentors of the late 1980s became conscious of the drastic transformation of the fundamentals of global business environment. This led them to diligently work in the development of novel skills and techniques that could cater the needs of the rapidly varying business environment. This transformation of business methodologies is known as the transition from the 'traditional' to the highly developed and sophisticated business technologies.
"The business environment in recent years has been characterized by increasing competition and a relentless drive for continuous improvement. Several approaches have been developed to assist organizations in meeting these challenges, including just-in-time (JIT), total quality management (TQM), process reengineering, and the theory of constraints (TOC)." (Garrison and Noreen, 1999)
TQM engross focusing on the client, and it utilizes methodical problem solving using teams made up of front-line personnel. Benchmarking and the plan-do-check-act (PDCA) cycle constitute the particular TQM tools. Any internal strife in the organization is shunned due to the emphasis on teamwork, a focus on the client, and facts. On the other hand, Process Reengineering revolves around the entire restructuring of a business procedure so that non-value-added activities are eradicated and prospects for blunders are truncated to a minimum. It relies more on outside experts than TQM and is thus more prone to be promulgated by top management. Where as, the theory of constraints, highlights the significance of administering the organization's limitations. (Garrison and Noreen, 1999)
Just-In-Time (JIT) Manufacturing
Just-In-time manufacturing or JIT originated in Japan and has been in practice in the country since the early 1970's. It was developed and improved by Taiichi Ohno of Toyota, who is now acclaimed to be the pioneer of the concept of JIT. "The idea was developed by Taiichi Ohno as a procedure to meet client demands with the least possible delays. JIT was therefore, initially, principally used to manufacture goods so that client orders ...Show more

Summary

The technological advancements of the late twentieth century and the exponential growth of high-tech machinery have turned the world into a global village. This consequently, has revolutionized the modern day business and has added new dimensions to the concept of management accounting.
Author : oleta81
Management Accounting and the Modern Business Enviroment essay example
Read Text Preview
Save Your Time for More Important Things
Let us write or edit the essay on your topic
"Management Accounting and the Modern Business Enviroment"
with a personal 20% discount.
Grab the best paper

Related Essays

SUPERMARKETS-GLOBAL BUSINESS ENVIROMENT
The growth rate of these supermarkets since the last few years explains one major reason of the economic improvement of the entire UK. However, changing trends and customer attitudes in the era of inflation and globalization have forced many supermarkets to review their strategies and selling schemes to attract more customers, offering both product quality and reasonability in prices (Experian, 2011).
3 pages (750 words) Essay
Accounting, Society and Enviroment
Accounting, Society and Environment Companies are required to publish annual reports and business reviews to relay performance, development and positioning of the business; although the requirements encompassing the review are size and complexity of the business (KPMG, 2006).
5 pages (1250 words) Essay
International Business Enviroment
Multinational companies have really focused on investing in the developing countries, most especially in Africa. One of these firms is the iomart IT Company in the UK. It has adopted an approach of expanding its operations all over so as to maximize on its revenue.
8 pages (2000 words) Essay
Business Enviroment
This paper aims at demonstrating how a firm might use environmental scanning to make sense of the industry in which it operates. It also aims at comparing how the framework might differ for firms of different sizes and scales. Environmental scanning is defined as the acquisition and use of information about events and trends in an organization's external environment, the knowledge of which would assist management in planning the organization's future courses of action (Choo & Auster, 1993; Aguilar, 1967).
4 pages (1000 words) Essay
International Business Enviroment
This can be both negative and positive. In conclusion, the paper highlights the inter-relationships between International Monetary Fund and the World Trade Organization. It also talks about what relationship other organizations like The World Bank have in common with the WTO.
4 pages (1000 words) Essay
Management accounting for business
To make a business successful, the management of a company individually and collectively, needs to be fully informed of the trends and situation prevailing in the market in which it operates. It needs to be fully aware of the costs it takes to run the business, to produce and to distribute its products.
3 pages (750 words) Essay
Management accounting for business
s aspects of business activities, the most important aspect being the minimisation of costs and maximization of profit that is the major objective of any business activity. To make a business successful, the management of a company individually and collectively, needs to be
6 pages (1500 words) Essay
External Business Enviroment
It further discusses the structure, operation and influence of local government. The report also discusses the legislative process as it affects hospitality industry at both local and national level. The report aims at the observation and analysis of the impact of socio-economic change on the development of commercial organisations in a business and services industry context.
8 pages (2000 words) Essay
Business enviroment - ECONOMICS
“Law is meant to include federal or state enacted laws or statues, the rules of federal and state regulatory bodies promulgated to give practical effect to enacted statutes and common law. Common law is that body
6 pages (1500 words) Essay
Business enviroment
The macro level or the broad level of external environment includes an analysis of factors like the socio cultural forces, the technological forces, the political forces, the legal
7 pages (1750 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