Strategic Management Accounting System - Essay Example

Only on StudentShare

Extract of sample
Strategic Management Accounting System

It further explains the control procedures expected at the three levels of management control (strategic, tactical and operational) and provides a discussion of how control is exercised and information required at each management level, relates to Highline Co. Ltd.
The traditional management accounting systems are of minimal use in the preparation of the strategic plans, monitoring of achievement process of predetermined objectives of the organization and performance evaluation of the employees. The failure of traditional accounting systems have triggered the process of research in order to find out the suitable methods which can eke the changing business techniques in order to achieve the organisational objectives in today's global business environment (Ittner & Larker, 1998).
According to the evaluation of the manufacturing data in different companies it has been found that the manufacturing has been transformed. Labour cost is no more considered as the significant cost of manufacturing, it has been replaced by the overhead cost which has become a significant cost of manufacturing process. This change has reduced the usefulness of the traditional accounting techniques. By undertaking the examination of the material cost and labour cost data the validity and generality of these claims can be tested. ...
Download paper

Summary

This project report is addressed to the Managing Director of Highline co. Ltd. The project report examines the reasons of the inadequacy of the information provided by the management accounting system to assist in strategic decision making in order to defend and strengthen its position.
Author : abelardo95

Related Essays

MANAGEMENT ACCOUNTING - Cost system
Avoiding fixed expenses to find the profitability of operations is the crux of marginal costing system. For the purpose of understanding the importance of marginal costing system in the firm, let us start with the very fundamentals of marginal costing. Marginal costing is the system of ascertaining the marginal cost and its use for decision making. Marginal cost is the extra cost incurred for producing an additional output. The extra cost incurred usually is the one which is likely to change in direct proportion to the change in output. Such costs are known as variable cost and hence the...
8 pages (2008 words) Essay
Strategic management accounting and finance
That information, in turn, can then become the knowledge that leads to wisdom. The idea is that information, knowledge, and wisdom are more than simply collections. Rather, the whole represents more than the sum of its parts and has a synergy of its own.
...
8 pages (2008 words) Essay
Management Accounting
Management accounting determines the success or failure of an organization. Moreover, it is very essential in the appropriate decision making. The main aim of a management accounting report is to provide logical information about the business and the functioning of it in all the levels of an organization. “The process of identifying, measuring, analyzing, interpreting, and communicating information for the pursuit of an organization's goals.” (Managerial accounting. 2007).Due to the changes that have been taking place in the accounting field, it is necessary to take appropriate measures to...
4 pages (1004 words) Essay
Strategic Accounting
One of the major developments in the area of managerial accounting is the product life cycle costing which has gained serious recognition during recent periods to meet the challenges of changes in the production systems and procedures.
...
6 pages (1506 words) Essay
Management Accounting Essay
It is futuristic in nature.
...
5 pages (1255 words) Essay
Strategic Management Accounting
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.
...
20 pages (5020 words) Essay
What is a strategic control system? what role does accounting play in a strategic control system? are the strategic management accounting in Caterpillar effecti
The process can be considered as a fundamental due to the fact that it involves even the strategic management accounting as one of the essential aspects. Basically SMA is one of the specializing areas in strategic control systems due to the fact that it deals primarily on management accounting issues specifically by using data and information related to finances and accounting (SMA Supplementary Notes 2-3).
...
4 pages (1004 words) Essay
Got a tricky question? Receive an answer from students like you! Try us!