Changing Technology Due to Changing Manufacturing Environment

1 Introduction

Today manufacturing environment is rapidly changing. Alteration stimulates the necessity of manufacturing companies’ owners and managers to make fast and smart decisions, going through the global variance of business, management, accounting techniques, high technologies and science. Management accounting destined to produce useful information about product cost, budgeting and performance report. There was significant influence in management accounting system because of changes, such as import tariffs reduction, employment practices and implementation of new practices. In order to succeed each company chooses its own way of guiding business through different ways of management accounting techniques. In the last few decades new tools and techniques of management accounting were developed through information and the latest manufacturing technologies. Investigation of new methods consequently became an occasion for partly losing the previous necessity of traditional techniques of management accounting system. The modern techniques like TQM (Total Quality Management), ABC (Activity Based Costing), JIT (Just in Time) were introduced and started to achieve popularity of usage among many manufacturing organizations. The presented assignment investigates either the traditional or modern methods of management accounting are useful in today’s era of global competition.
2 Main body

Modification at management accounting system became urgent owing to discontinuation keeping step with the last management philosophies and manufacturing technologies. That is why product costing, non-financial performance and capital investment appraisal were the cause for concern. Information Technologies were highly developed and management a...

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...the middle 1980‟s. It purports to undo the issues of standard management accounting by providing a company with strategic, operational, financial and non-financial info. It acknowledges that business may be a series of connected activities and processes that square measure undertaken to serve the client and to deliver product attributes. ABC thus, is that the generic term to explain another paradigm to traditional volume based mostly price model.
Organization within the new millennium ought to adopt an additional realistic approach to management. Managers need each traditional and non-traditional management accounting strategies to create higher selections. Key determinants like size, business and strategic priorities have a differential impact on management practices. Size is important for rising practices, whereas business is important for traditional practices.