Answer To: Assessment Details and Submission Guidelines Trimester T2 2019 Unit Code HI5017 Unit Title...
Sarabjeet answered on Sep 18 2021
Managerial Accounting
Management Accounting
Managerial Accounting
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Contents
Introduction 3
Types of management accounting methods & techniques 3
MAS relevant to contemporary organisations 4
Comparison 6
Conclusion relevance 7
Conclusion 11
References 12
Introduction
Management accounting is very important as it acts as the other part of business function of the finance function. It supports management and control of business entities. Accounting is related to business language because of the limitations and changes in financial and commercial business. The long-term technology and strategy of executing a business is important to ensure certain profits, however for management, it is critical to concentrate on company's goals to achieve potential and development opportunities. The major objective of the marketing manager is to fulfill customer needs in the future moreover in the present time. The present study will discuss different kinds of management accounting system. The study analyzed the relevance of management accounting systems to contemporary organizations. The assessment involves a management accounting systems in the other real-world examples of organization.
Types of management accounting methods & techniques
The economic sector decided to implementing a further accounting system. In words of ABC, the promotion and transfer to production sector means that the appropriate independence from chief accountant is the advantage of controller and is to determine the cost of production (Amiram, Bozanic and Rouen, 2014). As can be seen from given case studies, there are three main kinds of management accounting, for example:
Financial Statement analysis
The income statement balance sheet and income statement are important yearly statements thus, the validity period of the assessment report. The study yielded various parts about how organizations use accounting systems. It supports management and control of business entities. This type of survey helps organizations analyze the speed of business concerns. For A Company, the organization not only does not rely on internal data (AZIZI, FAHIM and SHAHROKHI, 2013). The reason is that the whole external and internal markets of the new organization will change after the acquisition. As described by ABC this analysis is achieved by comparing financial statement reports, general size reports, and ratio analysis. Such as, Company A faces a new set of different financial management as well as reporting accounting systems that focus on path of the acquisition and divestment.
Financial Planning
The major objectives of any type of business organization are to maximize profitability. The function is mainly achieved by developing an appropriate financial plan. Therefore, economic planning is called the finest technology and tool to achieve business goals (Burkert et al., 2014). For example, the current financial planning system is considered insignificant at A Company and is additionally used to get yearly reports.
Fund flow analysis
The analysis analyzes the organization of funds in the individual period with other teams. But, this analysis is analytical and knows whether the fund was used correctly when measured last year. From the perspective of ABC, new change in capital in operations is also analyzing this segment. For example, while financial accountants and performing management, BFM hopes to have correct understanding of the effectual concepts (Green, 2013). This allows researchers to verify the information needs of individual sources from multiple executives who are in a common location.
MAS relevant to contemporary organisations
Management accounting (MA) is defining as the professional that includes management decisions, performance management systems, or decision-making. In words of the ABC, management accounting includes analysing, collecting or reporting data and business operations. Management accounting focuses on the kinds of accounting that provides direct information to executives and decision makers within an organization or company. Organizational technology focuses on both traditional and contemporary categories. Traditional design involves a simple structure, a partition structure. Contemporary design involves functional structures, matrix structures, and partition structures. Because people have always believe that traditional organizations are analytical in their activities and progress (Humphrey, Benson and Brailsford, 2007). On other hand, teamwork is defined as the major aspect of the modern organization. From case study analysis, it has also been analysed by competitors that Company A has strengthened its personal strategic plan to observe strategies that remain at forefront of the technical and production efficiency. As mention by ABC, the adoption of effective technology companies in the business is a most important part of primary strategic direction. Management accounting is used to help managers make the right decisions to improve operational efficiency. The main benefit of contemporary organizational design is that employees have the freedom to make their personal decisions, and they can make very effective changes as well as disrupt the main owners of work with the middle management and senior management (Iatridis, 2010). In traditional companies, from the top to bottom, file employees are observe as gears in the business, and a certain number of decisions should be implemented. They do not have such input. However, if the cultural changes in organization's workplace have transformed the principles of customary organization that serve control and stability, the design of a modern company gives staff the autonomy and power to the implement further changes or Decisions (Kim, Ju-Eun and Hoyoung Kang, 2014).
In case of contemporary structure of association, the stochastic top-down model of traditional...