Management Practices Traditional vs Modern Innovative
Management Practices Traditional vs Modern Innovative
In last many years, few management accounting innovations has been developed. Managers have to make decision on a daily basis as well make decisions regarding the future and how to survive and grow in an energetic market place with ever growing uncertain circumstances. Traditional or modern management accounting system give relevant information to all levels of management, financial and other information to make decisions about planning, control of operations and identifying opportunities to add value.
The modern management accounting practice are typically different from that of traditional management accounting as they enable managers to make sound decisions to minimize cost as well in the same time add value to the products and services by improving the quality of products, which is required by the customers, and reduce waste. In addition, the modern management accounting systems allow the organisation as whole to develop the innovative capacity of the organisation and flexibility so that it can continually change and improve performance financially as well in its non financial areas of performance.
Traditional vs. Modern Innovative
Traditional will focus on cost control and, in particular, what is recognized as ‘variance analysis’ and which involves evaluating forecast outcomes with real outcomes – for example for costs such as materials and labour. The types of activity, therefore, that management accountants have traditionally involved themselves with include:
• Cost analysis
• Cost control
• Budget preparation
• Budgetary control processes
• Cost/benefit analysis
• Investment appraisal.
More modern, ‘innovative’ approaches include initiatives such as:
• Business process re-engineering: This is about rethinking and re-designing business processes as a means of reducing costs and improving delivery
• Zero-based budgeting: re-thinking budgets in a way that engage
In last many years, few management accounting innovations has been developed. Managers have to make decision on a daily basis as well make decisions regarding the future and how to survive and grow in an energetic market place with ever growing uncertain circumstances. Traditional or modern management accounting system give relevant information to all levels of management, financial and other information to make decisions about planning, control of operations and identifying opportunities to add value.
The modern management accounting practice are typically different from that of traditional management accounting as they enable managers to make sound decisions to minimize cost as well in the same time add value to the products and services by improving the quality of products, which is required by the customers, and reduce waste. In addition, the modern management accounting systems allow the organisation as whole to develop the innovative capacity of the organisation and flexibility so that it can continually change and improve performance financially as well in its non financial areas of performance.
Traditional vs. Modern Innovative
Traditional will focus on cost control and, in particular, what is recognized as ‘variance analysis’ and which involves evaluating forecast outcomes with real outcomes – for example for costs such as materials and labour. The types of activity, therefore, that management accountants have traditionally involved themselves with include:
• Cost analysis
• Cost control
• Budget preparation
• Budgetary control processes
• Cost/benefit analysis
• Investment appraisal.
More modern, ‘innovative’ approaches include initiatives such as:
• Business process re-engineering: This is about rethinking and re-designing business processes as a means of reducing costs and improving delivery
• Zero-based budgeting: re-thinking budgets in a way that engage