Managerial Accounting Unit Code HI5017 Trimester - T2 2019 Student Name- Student Number- Word Count- 3080

Managerial Accounting
Unit Code- HI5017
Trimester - T2 2019
Student Name-
Student Number-
Word Count- 3080
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Abstract
The objective of this article is to find suitable alternatives to contemporary concept of
accounting with the latest introduction of management accounting system or MAS. Any
industry aspires for adoption of perfect management accounting system to perform in
better style. Management accounting system enhances the scope of best possible
management decision making through adoption of different modules of MAS available in
current business perspective. Through this article, we have to explore the application of
different modules of management accounting system in real-life companies of current
corporate world by consulting two case studies available in journal articles. This study
includes and depends upon these two journal articles, which had emphasized on the
practice of MAS to prove its worth for effective decision making by managers of the
business entity. This article will highlight the application of referred management
accounting system with its shortcomings featured in the considered journals. The
discussion will evolve in perspective of Australian and New Zealand companies, who
adopted latest modules of MAS by helping the managers for effective decision making.
Critical review of these two journal articles would provide necessary input about the
adoption of latest models of management accounting system with its merits and
demerits to understand the fruitfulness of such application in real business world. The
practice of management accounting system is entirely confined within the organization
with no such integrated relation of the outcome of such effort for external stakeholders
of the entity. The purpose of this practice is to enhance the level of performance of the
organization by effective managerial decision making. Different specific examples of
MAS would be considered with their subsequent relevance for the contemporary
business organizations. By critically evaluating the two journals through comparing and
contrasting the inherent observations of them, the output is to be identified for the
success of the applied methods of those management accounting systems with its
relevance in perspective of current uncertain business environment in global context.
Key Words- Management Accounting System; TQM; ABC; TDABC; JIT; BSC; Decision
Making
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Table of Contents
Introduction................................................................................................................ 4
First journal................................................................................................................ 4
Critical Analysis....................................................................................................... 4
Three models of management accounting system..................................................5
Relevance of Management Accounting System......................................................6
Second Journal............................................................................................................ 7
Critical Analysis....................................................................................................... 7
Compare and contrast............................................................................................. 8
Conclusion.................................................................................................................. 9
Observations.............................................................................................................. 9
References............................................................................................................... 11
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Introduction
Management accounting system is considered as an emerging tool in global business
scenario. This tool has different methods, which are followed by the managers of the
company as per applicability to the business to find the output and use the same for
effective managerial decision making. This tool is explored by western economists and
eminent personalities of accounting science. The same is spreading globally for
accomplishment of coveted result as per corporate objective by setting respective
strategies with subsequent implementation. This article demands different aspects of
discussion. There will be two journal articles used for discussion. In first part,
identification of three models or techniques of management accounting system is to be
explored as per first journal article. Second part requires the discussion of relevance of
management accounting methods for the contemporary business organizations with
samples to cite as evidence of this hypothesis. The third part of this article needs to
compare and contrast the hypothesis with another journal article discussing the method
of management accounting system in real life company. It is also to be confirmed
whether the second journal article endorses the concept as depicted in the first journal
article or it differs from the observations of the first journal article. This entire article will
put emphasis on the issues of application of management accounting methods in
Australian perspective. As it is, present business environment is vulnerable and most
competitive in current global business environment. This article will highlight the role of
management accounting system in present corporate business with its relevance of
implementing the same in corporate business to enjoy competitive edge to ensure
sustainability. This article will give ideas about these issues with the role of
management accounting system and implementation of certain management
accounting methods applicable for the specific business to succeed with future
prospects.
First journal
The first Journal in consideration for this discussion is: The Case of a Newly
Implemented Modern Management Accounting System in a Multinational
Manufacturing Company published in 2014. This article was published in
Australian Accounting, Business and Finance Journal in their eighth volume,
second issue and specific article number nine found in page numbers 121-137.
The writers of this journal are Daniel Watts; P.W.Senarath Yapa and Steven
Dellaportas. (Watts et al., 2014)
Critical Analysis
Adoption of management accounting methods is motivated by two criteria. One is
operational to serve the objective of changes for short term, and the other is
strategic or for long term duration. (Hubbard et al., 2004). Main quest for change
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