What Is Management Accounting
What is Management Accounting
Introduction
Management accounting is concerned with providing information to managers – that is, people inside an organisation who direct and control its operations. (Management Accountin Seal et al) It provides very important information that businesses need to operate efficiently and accounts that accurately show financial information that managers need to make decisions in the best interest of the business. In this essay there will be an assessment on the claim that putting measures on human accountability is vital to getting things done and running an M-form business. I will base this on my readings of the visible hand by Chandler, the understanding of modern management by Hoskin and Macve and finally management accounting by Seal et al.
The roll of management accountants involves processing and purchasing departments may report to the managerial accountant. Financial reports regarding taxes, shareholder payments, capital expenditures, banking activity, payroll and benefits are regularly reviewed by the managerial accountant. Following the review, reports are passed on to appropriate department managers. Furthermore the Managerial accountant may also create in-house financial and accounting systems. This enhances their ability to provide more precise forecasting and develop alternatives for increasing profits or reducing expenditures. Developing a unique system also can result in increased industry knowledge, making the accountant a more valuable asset to the company.
Literature review
‘Management accounting has a strong future orientation’ (management accounting Seal et al) There is always going to be a change in the needs and demands of customers, within the economic climate and so there is a lot pressure on managers to make plans on estimates of what they think may happen in the future in order to allocate funds adequately.
In comparison to financial accountants management accounting puts much less emphasis on the
Introduction
Management accounting is concerned with providing information to managers – that is, people inside an organisation who direct and control its operations. (Management Accountin Seal et al) It provides very important information that businesses need to operate efficiently and accounts that accurately show financial information that managers need to make decisions in the best interest of the business. In this essay there will be an assessment on the claim that putting measures on human accountability is vital to getting things done and running an M-form business. I will base this on my readings of the visible hand by Chandler, the understanding of modern management by Hoskin and Macve and finally management accounting by Seal et al.
The roll of management accountants involves processing and purchasing departments may report to the managerial accountant. Financial reports regarding taxes, shareholder payments, capital expenditures, banking activity, payroll and benefits are regularly reviewed by the managerial accountant. Following the review, reports are passed on to appropriate department managers. Furthermore the Managerial accountant may also create in-house financial and accounting systems. This enhances their ability to provide more precise forecasting and develop alternatives for increasing profits or reducing expenditures. Developing a unique system also can result in increased industry knowledge, making the accountant a more valuable asset to the company.
Literature review
‘Management accounting has a strong future orientation’ (management accounting Seal et al) There is always going to be a change in the needs and demands of customers, within the economic climate and so there is a lot pressure on managers to make plans on estimates of what they think may happen in the future in order to allocate funds adequately.
In comparison to financial accountants management accounting puts much less emphasis on the
References: Chandler, A.D. (2007) The visible hand: The managerial revolution in American business U.S.A Harvard University Press. Hopper, T. (1980) Role conflicts of management accountants and their position within organization structures. Accounting, organization and society, 5 (4): 401-11. Hoskin, K (1996) The awful idea of accountability: inscribing people into the measurement of objects. In Munro R, and Mouritsen J Accountability: power, ethos, and the technologies of managing .London. Thomson Business Press. Seal, W. Garrison, H.R. & Noreen W.E (2009) Management accounting 3rd Ed. Maidenhead. McGraw-Hill Education Simmons, R (2000) Performance Measurement and Control Systems for Implementing Strategy Prentice Hall. Accessed November 2011 Drury Management and cost accounting 7th ed. Weetman p Management accounting 2nd ed.