Essay Example on Management accounting is the identification Analysis

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Management accounting is the identification analysis reporting and presentation of financial information internally used by management to plan decide and control The goal of management accounting in the organization is to support competitive decision making through collecting recycling and communicating which helps businesses plan monitor and evaluate business processes and corporate strategies Management accounting is not going to end Also it is the tool to help the objective of the organizations It is the term used to describe methods systems and accounting techniques that together with special knowledge and capacity and its task of maximizing or minimizing losses The management report is designed to provide useful information and reports to internal users such as managers and entrepreneurs who can monitor and plan their business activities Earlier time the organization move in to different type of businesses That are manufacturing organization and Service provided business Earlier the use labor hours to calculate the costs They have very little amount of indirect cost Indirect cost mean whatever the cost which are not directly related to the main operation During this period many companies have focused on the cost related expenditure assessment and the total cost allocation Some accounting methods that were developed for cost estimation were the first LIFO and the first one FIFO The need for cost accounting came about as a result of the industrial production in the nineteenth century as corporations made great investments in factories natural resources and equipment In that period managerial accounting was mainly accounting for expenses When consider about the Evolution of Management

Accounting Practice Prior to the matching concept of accounting for Processes 1812 1920 Focus on the effectiveness of operational costs and processes 1920 1950 The relevant concept has been developed on cost accounting Focus on costs and financial control From 1951 to 1980 Focus was moved to provide management planning and control Managerial Accounting In the 1980s Focus moved to Waste Management JTT Teamwork ABC Targeted Pricing Quality Investment and Product Cycle Management In the 1990s Focus has moved to building customer value strategy balanced evaluation cards EVA and other values based on values When considering the development of management reporting practices before 1812 1920 Procedural Accounting Concept Focus on the efficiency of operational costs and processes 1920 1950 The corresponding concept has been developed on the cost accounting Focus on costs and financial control From 1951 to 1980 Focus was moved to provide management planning and control information In the 1980s Focus moved to Waste Management JTT Teamwork ABC Targeted Pricing Quality Investment and Product Cycle Management In the 1990s Focus moved the customer s value strategy balanced ratings EVA and other related concepts cost based management The nature of management accounting has changed over the years Earlier focus was on management planning and control information Now focusing on resource management Now the management account is used to create maintain and maintain the cost of the stakeholders Management accounting field is very broad and covers all areas where management is required Businessmen involved in administrative records have gone a long way in the early days of the 1800 s management calculations Today managers of management institutions play a key role in many organizations There is nothing new in managing the accounting over the past 50 years By the end of the 20th century management styles had changed considerably There are problems such as location or technology speed Decisions were made to be done quickly and effectively as a collaborator Today organizations are against many options and challenges They need management accountants so they can walk and work in the team In the next period there will be some way for management accountants to build and improve their own roles 



First these successful companies focus on sustainable sustainability To do this proper management structures and incentives are needed Secondly they should focus on increasing the ownership of companies Capital gains may be important but with business ethics and long term focus Management The account holders can get help by providing strong and ethical analysis of the business information Third international management focuses on accounting A growing number of companies face serious challenges facing issues of local knowledge and culture Etc Directors play key roles in assessing information and risks The future of management accounting is presented in three ways These are the darkest scene the fantasy philosophy and the most visible vision In the the dark view the Management Accountant does not have any power or authority in the real business and the executive management will gradually reduce the functionality of the Writer s writings In the utopian scenario accountants will be more familiar with and more sophisticated about corporate organizational features It will work with current and related information and management changes in organizations The most realistic scenario involves an extrapolation of the present to the future Accounting It is possible and less or less appropriate

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