Advance Management Accounting Assignment

ADVANCE MANAGEMENT
ACCOUNTING

Table of Contents
INTRODUCTION ..........................................................................................................................2
TASK 1............................................................................................................................................3
Role of management accountant:................................................................................................3
TASK.2............................................................................................................................................5
IMPROVE PERFORMANCE OF THE ORGNAISATION VIA STRATEGIC
MANAGEMENT ACCOUNTING AND ITS TECHNIQUES:.................................................5
TASK 3............................................................................................................................................9
Career in management accounting role is suitable:.....................................................................9
CONCLUSION..............................................................................................................................10
REFRENCES.................................................................................................................................10

INTRODUCTION
Advanced accounting is that concept where it involves various issues of companies such
as cost management, management control system. These both are recognized as importantly in
now a days. While analysing these issues it provides the benefits and disadvantage of the
management accounting system. In organisation it promotes the critical interpretation of the use
of control system and management of information. In present report the role of management
accountant has been discussed and the strategic management accounting has been explained.
Along with this, the selection process has been described which includes the competitors
analysis, stakeholder analysis. Further, the four forces of effective strategy has been evaluated
which gives the best possible of outcomes. Strategic management accounting is beneficial for the
organisation to take better decision for the achievement of future goals and objectives. Some
concepts has been mentioned in this report which support the statements of various authors
(Kaplan and Atkinson, 2011).
TASK 1
Role of management accountant:
In this era, there is an issue that the functions of management accountant transformed at the time
when the business environment changed. The duties of management accountant has been
evaluated by way of skills and the way other managers understand them in their company. This
is universal evidence that management accounting practices covers management accounting
tools, information and methods. The burns and scapens model is in itself an underlying research
so that it produce a philosophical possibility to invent accounting practices. With the help of all
these techniques company has been able to stand constant on its part. But at the time of genesis
of management style, company was mainly dependant on traditional management accounting
patterns (Granlund,2011). But there were some issues which came out while doing such practices
like unavailability of generating useful information and providing full powers in management
decision making in this organisation world. By the time organisations felt the need of changing
role of management accounting for better functioning and productivity. There are many
management accountant styles evolved over the time. some of them is:
a). Many workers were alert about the management accountants and they were not only
concerned to company's accounting department, they also do activities of operating departments.

b). Faculty members observed that management accountants applied much time in internal
consulting and the key essential action for them is to make the strategic planning (Baldvinsdottir,
Mitchell and Nørreklit, 2010).
Individuals point out that management accountants in organisations play roles of both “business
partner” as well as the ”strategic partner”. The key explanation about these alterations is that
management accountants in the company make use of “balanced scorecard”. It is a technique
which is used by the management accountants to demonstrate their capacities to superior level
managers and fix their functions as a strategic partners (Cinquini and Tenucci, 2010).
With the genesis of particular accounting practices, these are called as “strategic management
accounting”. The functions of management accountants also recognised clear alterations.
There are two specific manner of strategic management accounting:-
one emphasis to cost the product benefits given by a company's products; while on the other is to
cost the roles in the value chain which furnish value to the ultimate consumer (Modell, 2010).
On the other hand, there are some conflicts arises between traditional and strategic management
accounting. The first major conflict is the manner that how cost shall be cost; other conflict is the
cost analysis goals; the final deviation is the cost behaviour. SMA is focused on the relative cost
position; the theory how an organisation can held regular cost benefits and cost differentiations.
That is why, a new invention in the field of accounting practices needs management accountants
to increase more capacities and enhance their scope from their regular work, keep eyes on
general management, strategy formulation, implementations and product development (Kapferer,
2012).
In this today world, skilled information creation is an ordinary driver caused amendments in
more segments. The function of management accountants in the corporate world also amended
with this tendency. If the management accountants want to be capable at their designations. Such
persons have the ability to stand beyond the change. They wants to be well aware about the new
information technology software. Accordingly, it is been so many changes occurred for
management accountant. The first trend was so many accountants came to the senior manager
positions meanwhile the responsibilities also changed from the part of simply analysis to the
strategic planning. This is happened due the abilities of the accountants which have the ability to
transform the financial data into strategic planning. Now, accountants share the activities such as
making strategies and giving recommendation for better decision making process. Management