Essay On Managerial Accounting
explanatory Essay
792 words
Managerial accounting has changed over the years. Managerial accounting focuses on more than the financial aspect. We will be looking at how managerial accounting affects the business world today. Business also look to the economy, federal taxes, and the financial market so it can make the best decisions for their business. Management accountants use their skills to help with decisions that help a business make good decisions so they company will be valuable and in an ethical manner. They assess risk and implement strategy through planning, budgeting, and forecasting. Now managerial accounts have become critical with their analysis while managing a business. They do more than provide financial information they also have an active role in the business. Over the years managerial accountants has changed and now provide nonfinancial information. They can help a business achieve their goals. Today there is many things that is influencing how managerial accountants do their job with the emergence of e-business. They can use their knowledge to streamline the e-business (Hilton,2008). Now global competition has new challenges for managerial accounts because trade agreements can affect the way the business performs abroad. Gillet (n.d) said, “To be competitive, manufacturers must keep up …show more content…
In this essay, the author
- Explains how managerial accounting affects the business world today. business also look to the economy, federal taxes, and financial market to make the best decisions for their business.
- Explains that managerial accountants are critical with their analysis while managing a business. they provide non-financial information and can streamline e-business. global competition has new challenges for managerial accounts.
- Explains toyota's toyota production system, which had a lean process when it came to production. managerial accountants found better ways to measure the just in time approach.
- Explains toyota's just-in-time philosophy, takt time, and continuous flow processing, which reduces wip, improves labor efficiencies and fewer defects.
- Explains how federal taxes, the state of the economy, and financial market affect business decisions on the short-term.
- Explains that the state of the economy can affect the decisions that businesses make. when an economy is in good shape but looks like there is going to be a down turn coming soon, they have to look at the cost of production, materials, and labor.
When it comes to federal taxes they mostly stay the same but the one tax that does change is state taxes. Some businesses look to the states with the lowest tax rate to open their business. When you have short-term investments, you will pay short-term capital gains tax and long-term investments you pay long-term capital gains. When the investments are held longer they tend to a lower rate. Business owners have to worry if politicians raise or cut the tax rate. If a business doesn’t know what their tax rate will be they tend not to expand or hire (Sherman, para
Related
- analytical
- explanatory
- comparative
- opinion
- argumentative
- Managerial Accounting Essayanalytical essayChapter 2 Literature review “The Changing Role of Managerial Accounting and the Managerial Accounting Profession in Romania” Managerial accounting has historical antecedents that stretch back to the beginning of the 1900s. Whether it was called cost accounting, or industrial accounting, or administrative accounting it is certain that concerns regarding production cost calculation, expenses’ classification and analysis, resource consumption administration, and pre and post cost calculations, have existed since the beginning of the 90s (Cardos & Cardos, 2010). Simon (1978) conducted a study about the role managerial accounting. In his opinion managers have three major expectations regarding to management accounting roles: scorekeeping (capturing,
In this essay, the author
- Describes the historical antecedents of managerial accounting, stating that concerns regarding production cost calculation, expenses’ classification and analysis, resource consumption administration, and pre and post cost calculations have existed since the beginning of the 90s.
- Explains that managers have three major expectations regarding managerial accounting roles: scorekeeping, attention directing, and problem solving. managerial accounting supports the process in all stages.
- Explains the changing role of managerial accounting roles, from being a scorekeeper to being an active advisor of management in the decision making process.
- Opines that managers should be able to obtain non-financial data as well as traditional financial data. forecasts, trend data, and demand estimates should also be provided to managers.
- Explains how mia and chenhall developed mas to include non-financial data focusing on predictive information and functional areas to enable managers to make more informed decisions.
- Analyzes gordon and miller's findings that management accounting systems are correlated with environmental, organizational, and decision-making style factors.
- Analyzes hayes' study of the influence of broadscope managerial accounting systems on the propensity to create slack.
- Explains how burns hypothesized that if accounting information is considered irrelevant for the set of decisions to be made, then it will not affect decisions.
- Opines that if accounting information is a decision input and an objective sought by the decision-maker, then it will affect decisions.
- Explains burns' opinion that the effects of non-accounting information on decisions can be analyzed in the same framework as accounting information.
- Explains gordon and miller proposed a broad framework for information systems to achieve the needs of decision makers. they believed that managers should have access to production, finance, and marketing information.
1333 wordsRead More - Decision Making in Managerial Accountingexplanatory essayManagerial accountants need to use accounting information in seeing to it that they are able to plan, evaluate the company performance, manage risks and control the business operations in a manner that is deemed beneficial to the business as a whole (Caplan, n. d). This can be achieved through: having high standards of ethics in all situations; employing the techniques of management reports, budgetary control, and analysis of fund flows and financial statements; making prudent capital investment decisions; and maintaining continuous quality control systems.
In this essay, the author
- Explains managerial accountants need to use accounting information to plan, evaluate company performance, manage risks, and control business operations in a manner that is deemed beneficial to the business.
- Explains managerial accounting as a synonym for management accounting, which entails the provision of accounting information to the managerial accountants of particular organizations to make informed decisions that touch on the business.
- Describes the four main elements of ethical behavior in management accounting, including stealing office supplies, accepting bribes, and inflating expense accounts and labor charges.
- Explains that management accountants are obliged to make a consistent improvement on their skills, which ensures professional competence. competence entails following the rule of law at all times.
- Opines that management accountants are custodians of useful information of their businesses. management accounting information is high confidential and should only be disclosed out of good faith.
- Opines that management accountants should minimize situations that lead to a conflict of interest. the duties and interests of the business should override personal interests.
- Opines that management accountants should maintain a high degree of objectivity whenever they are required to provide information regarding the business. they should not tailor accounting information so as to entice either existing or prospective shareholders.
- Explains that managerial accountants employ certain techniques to provide the required information for management purposes.
- Explains that management accountants are tasked with drafting budgets for the upcoming financial periods and comparing the actual results with the budgetary estimates.
- Explains that management accountants prepare timely reports which are submitted, detailing how each part of the business has been performing. this helps them in evaluating and making decisions that touch on the firm.
- Explains that fund flow analysis evaluates the firm's working capital for specific accounting periods. fund flow statements showcase the inflow and outflow of funds resulting from various operations of the business.
- Explains that managers analyze and try to make interpretations of what is contained in the income statements and the balance sheets. larocco (2007) affirms that this gives them information useful for their management roles.
- Explains that managerial accountants are expected to apply management accounting techniques in their daily activities within the organization.
- Explains that management accountants should give extra attention to decisions that touch on the firm's capital structure. capital structure encompasses long-term debts as well as equity and preference shares.
- Explains that debt/equity (d/e) has a strong positive relationship with the profitability ratio of gpr, opr and npr.
- Opines that managerial accountants should uphold a high ethical standard in order to undertake the roles of planning, performance evaluation, risk management and operation control.
- Explains that managerial accountants use accounting information to plan, evaluate company performance, and control business operations. maksoud (2011) asserts that management accounting involves strategic, performance and risk management.
- Explains that management accounting is forward-looking and budgeting enables businesses to have a blueprint of what income they expect and how they intend to spend in the future.
- Explains that quality control is closely associated with quality assurance. managerial accountants should be careful when coming up with measures to control the quality of their products or services.
- Explains the influence of competition on the deployment of contemporary management accounting practices and managerial techniques in egyptian firms.
- Explains gao, s., and gunasekaran, a. global accounting and control: a managerial emphasis.
- Explains liao, s.s., maksoud, a.b.
- Describes neranda, b., reichelstein, s.
- Explains wang's application of fuzzy set theory to the weighted average cost of capital and capital structure decision. westgard, j. o.
2652 wordsRead More - An MBA Graduate Definedcomparative essayManagerial Accounting is vital to a business’s success because it quantifies a firm’s performance. By quantifying certain performance variables, senior management can carry out its two most important functions: 1) Decision-Making/Planning and 2) Controlling Employee Behaviour.
In this essay, the author
- Explains that an mba degree is awarded to individuals who complete required coursework in the field of management science. an mba manager is similar to the captain of a ship.
- Concludes managerial accounting is a process mba graduate managers can use to gain insight into planning/decision-making and employee control. it involves examining financial accounting data and applying that information to maximize profits through marketing and operations functions.
- Explains managerial accounting is the process of using information systems to provide data to senior managers who use this data for decision-making/planning and monitoring employee performance in order to maximise profits.
- Explains how financial accounting documents provide senior managers with a tangible starting point for decision-making/planning and analysing employee performance.
- Illustrates how financial accounting data can be used to make marketing decisions and plans about future output.
- Illustrates an operations function employee control problem that can be addressed by mba graduates through managerial accounting.
2179 wordsRead More - Debenhams PLCexplanatory essayManagement accounting in organisation is very important for decision-making and to make the business more efficient and therefore increasing its profits. Is the process of preparing accounts that can help managers to make day-to-day and short-term decisions, by providing them with accurate and timely key financial and statistical information...
In this essay, the author
- Explains debenhams plc's overheads and traditional absorption costing, which is represented in four steps.
- Explains that debenhams started in 1778 when william clark opened a store, selling expensive fabrics, bonnets, and parasols. in 1813, clement freebody invested in the business and renamed it to 'depenham'. management accounting in organisation is important for decision-making.
- Explains how debenhams plc can use non-costing management accounting techniques such as variance analysis, cost volume profit analysis and investment appraisal.
- Cites colin drury, management and costing accounting, (7th edition), chapter 3, cost assignment, p. 54-59.
2104 wordsRead More - Role Of Management Accountingexplanatory essayIn Financial Accounting accountants prepare only the annual finance statement of any organization and shows if the organization is going in profit or loss. But in Management Accounting the managers have to take the future decisions and steps by looking at the past financial statements. So Management Accounting is very important because one wrong decision can transfer the organizations path or the future. Management Accountants have a responsibility to moral qualities which has to be kept intact by using their various skills, which will ultimately help the shareholders of any organization to retain profits earned from the money invested. Strategy formation by executing plans, budgeting and forecasting, risk management and decision making all these are required as skills in Management Accounting. In Management Accounting a manager has to have knowledge on both the financial and non-financial terms of the business and operational sides of the business. Both the financial and non-financial items are reported and analyzed by the managers to come to any decision. Again, the corporate social performance is also analyzed and a report is made on that. They have to take care of the other points also, i. e, profit of the organization, the final and end users, i. e ,customers and their satisfaction levels, employees of the organization, environmental matters related to the
In this essay, the author
- Explains that asda is a subsidiary of walmart, which is the world's largest retail chain. the threat of global warming is already being felt in the fresh foods section.
- Explains that management accounting is different from financial accounting because managers have to take the future decisions by looking at the past financial statements. management accountants have a responsibility to moral qualities which has to be kept intact.
- Explains that the two techniques to be used to solve the above mentioned problems are the zero based budget and the periodic budget.
- Explains denniscaplan.fatcow.com's chapter 1: management accounting defined, described and compared to financial accounting.
- Cites management, 4. (2015). 4 activity based cost systems for management. academia.edu.
- Describes the definition and meaning of management accounting at business dictionary.com.
- Explains that asda: 95% of our fresh produce is already at risk from climate change.
- Analyzes how asda's five-year strategy is the right one, according to lawson.
- Describes management accounting as the process of preparing reports and accounts that provide accurate and timely financial and statistical information required by managers to make day-to-day and short-term decisions.
- Opines that asda can control global warming by taking measures, such as reducing the supply of water, and identifying farmers who follow monoculture production.
- Opines that asda should open small retail stores within the towns so that the customers can walk and reach the shop for shopping.
- Explains the strengths of their assessment, which is that the problems mentioned above are faced in the real world by asda.
1928 wordsRead More - Financial vs. Managerial Accountingopinion essayFinancial and Managerial accounting are used for making sound financial decisions about an organization. They provide information of past quantitative financial activities and are useful in making future economic decisions. (Albrecht, Stice, Stice, & Skousen, 2002) The same financial data is used to derive reports for each accounting process yet they differ in some ways. Financial accounting primarily provides external reports for external users such as stock holders, creditors, regulating authority and others. (Garrison, Noreen, & Brewer, 2010) On the other hand Managerial accounting is concern with providing information that deals with the internal viability of the organization and is tailored to meet the needs of an individual organization. (Albrecht, Stice, Stice, & Skousen, 2002)
In this essay, the author
- Explains that financial and managerial accounting are used for making sound financial decisions about an organization. they provide information of past quantitative financial activities and are useful in making future economic decisions.
- Explains that managerial accounting addresses the aspects that relate to an individual organization return on investments (roi).
- Explains that managerial accounting is unique to an organization and is used strategically in accomplishing the organization's mission and goals.
- Explains that managerial accounting helps managers deal with future economic decisions. the ever-evolving changes such as competition, customer needs and desires, and ecomonic conditions demands a manager's attention and rational decision.
- Opines that managerial accounting is discretional by the individual organization and does not need to follow the generally accepted accounting principles.
- Compares financial accounting with managerial accounting, which summarizes past financial transactions and activities. these reports are required by regulating bodies such as the sec and irs.
- Explains that the sec regulates issuance and trading of securities in the united states and monitors insiders trading and stockbrokers' behavior.
- Explains the importance of ethics and integrity in accounting. wall street's expectations about a company and not its actual performance sometimes lead to inflation of numbers.
- Explains that the governing body (fasb) is acknowledged as the source of authoritative accounting standard by the private sector in the united states. globalization has required companies doing business around the world to institute another set of standard.
- Explains the differences between financial and managerial accounting. internal reports are tailored to meet the need of management, while external reports follow certain standards and guidelines.
1091 wordsRead More - Essay On Challenges Of Accountingexplanatory essayAccounting dates back as far as first centuries, is the language of business. As everything has gone through many changes, accounting has also changed many times through out the centuries. It went from the use of abacus to the most advanced softwares, and computers. With these drastic improvements nowadays accounting, financial accounting and management are facing big challenges. From the presentation of the reports to communication to the users, investors, and owners, the accounting field has gained totally a new shape from two decades ago. Today with the dynamic change in every aspect of life, the accounting field has to act fast and be able to adapt these new changes and challenges in order to survive.
In this essay, the author
- Explains that accounting dates back as far as the first centuries, is the language of business. accounting has also changed many times through out the centuries.
- Explains how technology has changed many aspects of business and accounting practice and created many new opportunities to accounting professionals.
- Explains that the international accounting standards committee (iasc) was founded in 1973 and changed its name to ifrs international financial reporting service in 2003.
- Explains that increasing competitions and high expectations of the companies have put high pressure on accountants. setting business plans, goals and providing guide to achieve them with less cost and most profit.
- Explains that technology has added many advantages and competitions to the accounting field. firms and accountants have made more efficient and effective decisions with these new inventions.
1025 wordsRead More - The Purpose of Accountingexplanatory essayIn Management, the accountant gives advices to the individuals and business people, how to manage their business. The account information is considered and some business decisions are taken in both financial and non-financial departments. Budgeting, tax filing, and financial statements. Other activities like involve in planning com...
In this essay, the author
- Explains that the purpose of this document is to describe the nature, purpose, and scope of accounting. accounting involves in preparing financial documents of an entity by analyzing, verifying, reporting this records.
- Explains the main view of this report is to explain how the accounting plays a major role in banking, finance and other sectors of business.
- Explains that the accounting of business is used to record and measure the size of the business, in terms of gains and losses on monthly, quarterly semi-annual and annual basis.
- Explains that accounting in business follows a particular process either in small scale business or large scale businesses with step by step process.
- Explains that in management, the accountant gives advices to individuals and business people, how to manage their business. account information is considered and some business decisions are taken in both financial and non-financial departments.
- Explains that tax accounting is involved in filing the tax returns of the company individually, based on their income, and they need to pay the percentage accordingly to tax rules. taxation on business is another source of income to meet and satisfy the necessary needs.
- Explains that financial accountant prepares monthly, quarterly, semi-annual, and annually financial reports to see the business development. these reports are useful for creditors to decide whether to invest in the company.
- Explains that a budget analyst develops, executes and analyzes budgets for public, private, and nonprofit organizations.
- Explains that auditors audit accounts and verify that all financial reports and statements are correct. in case of unmatched consequences, the organization needs to give explanation on the misrepresentations of wrong statements.
- Explains that accounting plays a major role in developing and growth of the business. financial standards are expected as the complexities of business growth and expansion.
632 wordsRead More - The Importance Of Accounting In Our Modern Societyexplanatory essayAccounting is so important in our modern society. It serves a variety range of place in our society. It serves a variety range of place in our soceity, from school to hospital, from business firm to government agencies. It's also the main force in regulation of taxation and industrial activity. It serves a great aspects on the development of mass-production systems, any way, it's a very important term in our modern soceity.
In this essay, the author
- Explains that accounting is a career for men and women who at the start have their eyes set on top positions in industry, management, government, and general business.
- Explains that accounting is a vital element of business. it records the business' growth and, after analyzing figures, suggests the future direction.
- Explains that if their friend has ever operated a business and you saw him placing figures in ledgers, then you see him doing bookkeeping. if you have worked at service station or supermarket and have seen books with large sheets lined in green and red lying on the manager's table or desk
- Explains that accounting is one of the fastest growing fields in the united states. as our country has expanded, business and industry have become more complex, so control is very important.
- Explains that public and private accountants serve different functions in business organization. they offer their services to the general public on a fee basis, similar to lawyers, doctors, and dentists.
- Explains that accountants in private and government work customarily specialize in the performance of a single type of accounting service.
- Explains that there are other general categories of accountants who are taking important parts in business organizations.
- Explains that a company needs well-organized management. managerial accountants need to learn all aspects of the company?people, products, plants, and equipments.
- Explains that a company needs someone to record its financial operating datas, measure performance, interpret results of operations, and make recommendations for actions. the controller is responsible for the company's finances, people, products, equipments and material.
- Explains that a corporation may exist many different items in managactures, and those items go hundreds of various sized and priced componenets. a cost accountant works on it.
- Explains that organizations of federal, state, or municipal government also need accountants to help their business. they may do auditing, designing and maintaining, budgeting and administrative duties requiring the use of accounting information.
- Opines that a modern business organization needs an internal accountant to see whether the company's assets are properly protected and accounted for.
- Explains that high schools, colleges, and universities need accounting professors to teach students accounting techniques. teachers serve as school secretaries, bookkeepers, statistical clerks and managers in lunchrooms.
- Explains that tax is a major financial imcome of the government, and accountants are closely related to the tax adminatration.
- Explains that accountants use tax skills to prepare people's yearly reports. in california, individual cpa practitioners report that around 21 percent of their business is tax work.
- Explains that sound business needs good record, so control accountants are needed for this. government firms and other organizations need auditors to operate the business.
- Explains that two million federal employees are working for the government, dealing with problems of population, education, transportation, national security, welfare and others. accountants, auditors, system analysts, and budget administrators maintain stability in modern governmental operations.
- Explains that the department of agriculture deals with agricultural production, chemistry, economics, engineering, marketing, conservation, price support, and production adjustment problems. accountants develop and maintain financial management systems, prepare and analyze budgetary and program lost statements, check costs of commercial food processors and producers.
- Explains that the department of commerce performs a wide range of operations, such as collecting information about domestic and foreign industries and trade, publishing technical information for the government, and handling allocations of materials necessary to military and atomic energy programs.
- Explains that the department of defense has established an ideal career program to recruit auditors and accountants.
- Explains that under the department of health, education and welfare, there are public health servide, the food and drug administration, and the office of education, social security administration.
- Explains that the post office deartmetn employs more than 560,000 people and operates over 35,000 post offices. the department also provides money-order and postal-saving services.
- Explains that the treasury department needs men and women educated and trained in accounting, auditiing, budgeting and financial management.
- Explains that the united states greneral accounting office oversees all government agencies. the comptroller general is the chief accountant of the nation.
- Opines that accounting is the door which widely open to women, since women's position has been improved in the u.s.
- Explains that accounting is everywhere. non-business organizations can stay longer without it. more and more employers prefer employees with some knowledge of bookkeeping and accounting.
- Explains that accounting is so important in our modern society. it's the main force in regulation of taxation and industrial activity.
2459 wordsRead More - Compare And Contrast Financial Accounting And Managerial Accountingargumentative essayComparimg and Contrasting Financial Managerial Acctounting American Public University ACCT 105 Joshua Bone Financial accounting is the analysis, classification, and recording of financial transactions and reporting such information to respective users especially external users who use the information to make decisions about their engagements with the entity. In financial accounting general purpose financial statements are used for external reporting. The public by standards imposes the development of the statements through respective national professional bodies, International Accounting Standards Board and respective company Acts for various nations. On the other hand, managerial accounting is category of accounting that provides special purpose statements, and it reports to management and other persons inside the
In this essay, the author
- Explains that financial accounting is the analysis, classification, and recording of financial transactions and reporting such information to respective users. general purpose financial statements are used for external reporting.
- Explains managerial accounting is a category of accounting that provides special purpose statements and reports to management and other persons inside the organization. it is future-oriented and proactive, unlike financial accounting which relies on past information to report to external users.
- Argues that financial accounting helps external stakeholders make informed decisions by obtaining information on how efficiently the management is performing its steward function.
- Explains that management accounting is more detailed in its reporting and provision of information, whereas financial accounting provides summarized information based on quantitative information only. managerial accounting incorporates both monetary and non-monetary aspects of accounting.
- Argues that managerial accounting provides data regarding cash rounding of estimates of figures for future date hence not thoroughly probable regarding the accuracy of information.
- Opines that management accountants are not required to prepare financial statements as per the law. company acts require a business to present financial reports to the public.
- Explains that management accounting does not provide for any standard format of preparing management accounts. financial accounting prescribes a composition to prepare published financial statements and accounts, guided by generally accepted accounting principles and international financial reporting standards.
- Compares management accounting with financial accounting, which focuses on segments in an organization like a department and provides information specifically geared towards that specific section to management to make decisions on improving the operational and financial efficiency of the sector.
- Compares financial and managerial accounting to provide information relevant to shareholders and managers to make informed decisions.
799 wordsRead More