Advance Management Accounting

This document provides a comprehensive guide on advance management accounting, covering topics such as the roles of management accounting, strategic management accounting, sustainability, management control, financial results control system, and management incentive plans.

Running head: Advance Management Accounting
Advance Management Accounting
Name of the Student
Name of the University
Author Note

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Advance Management Accounting
AT The start of the semester
In the start of the semester the goals which were set by me is that I wanted to know about the
management accounting and how it help the company to maintain and manage their business
goals. As I was not aware of the management accounting policy in regards with company.
The goals are also set by me that to know how the company manage set it strategic regarding
the business and how it able to manage them and apply in their business structure. I also
wanted to know about the difference types of strategic tools and who it help the company to
know various external factor of the company. Also wanted to know who the management
control the employees as how they try to maintain the role of the company and what are the
process company use to maintain the role of the management. Also the how the company
evaluate about their management and strategic goals and how they implement it in the
business structure. Also want to know about what are the incentive plan and how the
company use it to make their production increase. Also wanted to learn about the different
plan and how the plan affects the employees of the company. In regards with the above goals
the activity is considering to take part in all the week assignment and to learn each type of
case and to know that I will also go to different companies and business houses to know how
they implement different strategic an what are their procedure to implement in regards with
the vision and mission of the company.
Week-1
The Changes Roles of Management Accounting
Management accounting help the company to get the cost estimation of the company and help
the company to do budget and forecast the data for their future events. Many changes have
come in the roles of management accounting as the changes came in both organizational level
as well as board environment level. The changes, which has come in the Board
Environmental Changes are its have, increase in globalisation in market as well as it upgrade

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the production technologies. Even due to competition and increase in accounting scandals
many changes have come taking this matter into consideration as well as the knowledge
require for this accounting is also been increase by the management of the company. As per
considering the organizational change, emphasis given more upon the customer and suppliers
relationship.
Week-2
Strategic Management Accounting
Strategy help the company to meet the goals and objective of the company. It gives a mission
and outline how the company should work so that it can achieve its objective. Company make
a vision and mission of the company and put into a tool named balance scorecard which help
the company to implement this strategy and help them to achieve the goals and objectives.
Strategy can classified as three types Corporate, Competitive and Functional. Corporate
strategy tell about the business which the company is doing, Competitive Strategy shows how
the company does in respect with the competitors of the industry, Functional Strategy helps
the company to do its operational factors that affect the business of the company. Strategy
Typologies is a competitive strategy tools that help the company to judge the competitor in
the business. It can classified as M Porter Strategy, Miles and Snow Strategy. I have learned
from M porters model about the competitive structure of the company, it help the company to
know who are the suppliers of the company, buyers of the company and many other factors.
The M and S strategy help us to know the changes regarding the product and markets in
compare to the market.
Week-3
Sustainability and Management Accounting

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Sustainability refers to future needs, which should not affected by the present business. In this
topic, I have learned about the future requirements, which should not affected by today’s
needs. A sustainable organization is said to be one which have a future plans for its
shareholders, which bring employments for present and future employees and which help
others to achieve their desired goals. I have learned that the organization should create a
value for its organization and should measure its cost and revenue so that it can measure the
performance of the company.
Week-4
The Management Control Role
In this I have learn that the management control roles is a process from which the
management see whether the organization is carrying its roles and objective easily and
smoothly. It keep an record upon the business activities and encourages all the employees to
work as per the business objectives. It functions is to fulfil all the management objectives and
the benefits of doing is to increase the profitability and efficiency of the company. I have
learned from the above that the company manage its control so that it can keep an eye over
the employees, do fuller utilization of its resources, and help them to increase the profit of the
company and help them to get an edge over the competitors of the company. From this
activity the management help the business to achieve its goals and objective and how it
manages the overall performance of the company. This help the company to manage their
cost as it keep a record of the employee and take all the necessary decision in regards with the
control of the employee activity and help them to go for the business goals all together.
Week-6
Evaluating Management Control Systems

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In this I have learn how the company maintain its control system and how them make their
control system. A system should have a tight control, as it will increase the certainty that the
individuals are doing their roles and help the management to fulfil the objective of the
company. The management should define each words in the control system so that it help
them to give a clear view of the rules and norms, it should include a tracking system, which
should track an individual effectiveness and should act according to it. In these I have also
learn that the management should make a flexible control so that each individual should able
to know his or her responsibility. The flexibility help each department to know how and what
are the duties they have to perform, it should made as per the performance like precision,
objectivity and timeliness of the company. It also help to overcome the lap between the
Individual and Organizational objectives. This also help me to know about the various how
the management uses its objective and how the company help the individual in achieving
there as well as the financial goals of the company. It also help them to manage the business
goals and objective of the company.
Week-7
Financial Results Control System
In this chapter, I have learned about budget and financial results of the company. Budget help
the company to forecast the business of the company. Budget help the company to set the
targets and takes it as a standard to achieve the require target of the business. Financial results
control should be responsible for all the decision taken by them, a formal management
process should be made to define the expectation and performance of the company, it also
provide a link between various organizational incentives. This help the company to judge the
performance of the company and how the company is performing in the industry. As it can
compare the budget and actual data as it set budget in regards with the forecast related to the

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business enterprise and which the company forecast in related to the sales and revenue of the
company so after the end they can compare both actual and budget data so to know whether
the company is performing the good or not and it can take decision as per the needs and
preferences of the company.
Week-9
Management Incentive Plans
Incentive plan made by the company to give rewards to the employees that has given their
best in the company. It help them to make their employee works better by providing them
incentive plan. I have learn that incentive can be a reward as well as punishment to the
employees. Reward can be monetary as well as non-monetary incentive. I have learn is the
employees works better he will get salary increment, bonus and in non-monetary it will get
promotion, more responsibility and name in the company. It can also get punishment is it
does not work as per the requirement of the company as no bonus and no increment in the
salary of the employee and in non-monetary it can be humiliation in the office, no promotion
and it can also lose the job in the company. This plan is made by the company to make
increase in the production unit of the company and also done so the company can get more
business in return from the customer as well as it help the employee to work more effectively
and smoothly in the organization. Therefore, an employee should work according to the
company norms and should get incentive plan from the company. As if it does not work as
per the norms and rules of the company than it will punished and it can even lose its job for
not performing as per the company norms.
At the end week of 10

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After completing of all the week, the goals which were set by me in the start week were fulfil
as I got to learn about the management accounting and how the company use it to manage
their accounting system. Also able to learn about the strategic management concept and how
the company make it apply in the business. Also able to learn how the company is able to
make strategic decision and how they able to make their goals and objective. It help me to
know what are the vision and mission which the company makes and they put them in the
strategic management and help the company to manage the gaols and objective of the
company. Also able to know how the company manage the goals n objective and how they
maintained the employees to fulfil the required goals of the company. I also able to learn
about the budget and financial control and got to know about how the company forecast their
business and how the use budget to know different sale and revenue of the company. This
help them to set the standard of the product and help them to compare with actual so that they
can know how they are performing in the market and how they can improve in regards with
the products. Financial control help the company to manage and keep the product ready for
the business, it help them to know how the company is performing in the market and how
they can improve their financial position in the market. Able to learn about what is incentive
means to a company and also how the company maintained its work by providing different
incentive plan. It help me to know various details of the monetary and non-monetary
incentive how it affect the overall performance of the company. The efforts which is taken by
me after completing all the week assignment is that I try to know about the all the theory in
practical way and to know that the I went to different company and able to know how the
company maintain their management accounting and what are the strategic tools which are
used by the company to know more about the external factors related to the industry. Also did
my own research in related to different strategic policy and how the company use different
tools and how they select tools in regard with the industry. I also checked some journals and

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study related to the management accounting and how it give affect in the company and how
the company manages its resources in related to the external and internal factor. This help me
to know an overview about the micro and macro environment which affect the company
business.
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