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Management Accounting: Cost Control and Decision Making

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Added on  2019-12-28

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In this report different aspects of management accounting are discussed ranging from their framework to varied technique’s and there application in business. Research 1: Management accounting in helping managers in formation of plan in respect to cost control and curtailment 25 Figure 3 Role of management accounting in controlling expenses26 Figure 4 Respondents response on relationship between management accounting and inventory management 27 Figure 5 people opinion on the extent to which management accounting play an important role in the control of indirect expenses 28 Figure 6 People opinion on the role

Management Accounting: Cost Control and Decision Making

   Added on 2019-12-28

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DISSERTATION
Management Accounting: Cost Control and Decision Making_1
ACKNOLEDGEMET
I am thankful to all those friends and relatives that help a lot in completing research study. Apart
from this, I am also thankful to my teacher who give me proper guidance regarding preparing a
research report. Without support of friends and teachers it was not possible to complete this
dissertation. It is there guidance and efforts that help me in understanding and completing
research study in systematic way. Finally, again I extend thanks to all those who support me in
completing research study.
Management Accounting: Cost Control and Decision Making_2
ABSTRACT
Management accounting is the one of the most important discipline that helps managers in
costing accounting. There are varied tools and techniques in the mentioned discipline that are
used to control and curtail cost at the workplace. In this report different aspects of management
accounting are discussed ranging from their framework to varied technique’s and there
application in business. Data in respect to people views on relevant aspects of management
accounting are collected from the people. Same are analyzed by using thematic analysis.
Analyzed results are clearly revealing that management accounting tools greatly helps managers
in cost control and curtailment. Hence, it is very important to use these tools regularly with full
caution as business decisions are made on the basis of output of same.
Management Accounting: Cost Control and Decision Making_3
TABLE OF CONTENTS
CHAPETER 1: INTRODUCTION..................................................................................................6
Research aims and objectives.................................................................................................6
Research questions.................................................................................................................7
Research Rationale.................................................................................................................7
Significance of research.........................................................................................................8
Structure of report...................................................................................................................8
CHAPTER 2: LITERATURE REVIEW.......................................................................................10
CHAPTER 3:RESEARCH METHODOLOGY............................................................................19
3.1 Research introduction and overview..............................................................................19
3.2 Research type..................................................................................................................19
3.3 Research design..............................................................................................................20
3.4 Research approach..........................................................................................................21
3.5 Research philosophy.......................................................................................................21
3.6 Data collection................................................................................................................22
3.7 Sampling method............................................................................................................22
3.8 Data analysis...................................................................................................................23
3.9 Research limitation.........................................................................................................23
CHAPTER 4: DATA ANALYSIS................................................................................................26
CHAPTER 5: CONCLUSION......................................................................................................41
APPENDIX................................................................................................................. 48
Figure 1 Framework of management accounting..........................................................................24
Figure 2 Role of management accounting in helping managers in formation of plan in respect to
cost control and curtailment...........................................................................................................25
Figure 3 Role of management accounting in controlling expenses...............................................26
Figure 4 Respondents response on relationship between management accounting and inventory
management...................................................................................................................................27
Figure 5 people opinion on the extent to which management accounting play an important role in
the control of indirect expenses.....................................................................................................28
Management Accounting: Cost Control and Decision Making_4
Figure 6 People opinion on the role that management accounting play in solving problems
related to varied business activities in the firm.............................................................................29
Figure 7 Score keeping as part of management accounting and decisions related to different
business activities..........................................................................................................................30
Figure 8 People response on extent to which it is very difficult to set standards for the budget. .31
Figure 9 People response on difficulty faced by managers in setting parameters in the budget and
performance of control function of management..........................................................................32
Figure 10People response on methods that can be adopted to reduce difficulties that are faced by
managers in preparing a budget.....................................................................................................33
Figure 11 Role of management accounting in attracting attention of managers towards sever
issues..............................................................................................................................................35
Figure 12 People response on role that management accounting play in providing useful inputs
that can be used to form corporate strategy...................................................................................36
Figure 13 People response of role of management accounting in forecast of different things by
making use of its techniques..........................................................................................................37
Figure 14People comment on modern and traditional method of accounting...............................38
Management Accounting: Cost Control and Decision Making_5
CHAPETER 1: INTRODUCTION
Management accounting is one of the most important domain of the business
management. Currently, most of company's whose size is medium or large are appointing cost
accountants who perform varied operations related to management accounting. There are number
of techniques of management accounting that helps firm in evaluating different things. In present
time period competition is increasing at fast pace among the firms irrespective of industry to
which they belong. Price is one of the most important factor on which firms are in front of each
other in the market. Hence, it is very important to utilize resources efficiently along with
maintaining stiff control on cost. Thus, it is clear that management accounting affects or is
related to different business activities (Managerial accounting purpose and roles, 2015). Due to
all these things the role and function of management accounting is the main area on which this
research study will focus. In this report critical issues related to management accounting will also
discuss in detail. Some techniques and there use in respect to varied business activities will be
discussed in the report. Management accounting is one of the most important analytic tool that is
used for deep analysis of the firm business operations. The importance of management
accounting can be understand from the fact that by using information relevant to MA planning is
prepared by the managers. By preparing sound plan resources are used in efficient and effective
way. Budgeting is another important thing by using which business firms are controlling there
expenditures and measuring business performance. So, there are multiple techniques of
management accounting that play a significant role in assisting firm in performing its business
operations in the best way. It is very important to understand some issues that are associated with
use of management accounting techniques. By identifying relevant issues and addressing them
the best use of methods can be made by the business managers (Herman, 2011). It can be said
that this report will not only throw a light on the importance of management accounting but will
to some extent draw attention on issues related with same. Thus, it can be said that present study
will help reader in understanding different aspect of management accounting.
Research aims and objectives
Research aims and objectives are the two main elements or factors that give proper
direction to the specific research study. On the basis of determined direction in which research
must be carried out study can be conducted in better way. The aim of the present study is “To
Management Accounting: Cost Control and Decision Making_6
evaluate the role of management accounting in the functioning of the business activities”.
Research objectives to achieve aim are as follows:
To critically evaluate the model that is followed to perform all operations related to the
management accounting in real business world.
To evaluate the functions of management accounting in respect to varied business
activities
To examine the role of management accounting in growth and success of business
activities
Research questions
Research questions are one of the most important tool that helps in structuring the
research analysis to achieve best results from the study. It is a tool that helps firm in doing deep
analysis of issue that in respect to research topic is currently faced by relevant people. Research
questions related to current research study are as follows:
What are the different functions of management accounting in service sector units?
What is the role of management accounting in making effective business decisions?
How management accounting does helps in business functioning for different
organizations?
Research Rationale
Management accounting is one of the most important effective tool that is used to
measure performance of the business firm from different sides. By using management
accounting methods areas where improvement needs to be made can be identified. Business
firms face multiple problems like elevation in expenses and decline in profitability (Bennett,
Schaltegger and Zvezdov, 2011). All these issues can be handled by using management
accounting methods. It was necessary to conduct research on management accounting so that the
scope of its use and effectiveness can be identified. Apart from this it was also very important to
identify and analyze the development aspects in accounting aspects of businesses which will help
the companies in analyzing the critical issues regarding management accounting discipline.
Management Accounting: Cost Control and Decision Making_7
Significance of research
There is great significance of present study because it helps in analyzing different aspects
of the management accounting. In the present study different roles of mentioned sort of
accounting will be discussed in literature review section. Along with this, functions of same will
also be discussed in the mentioned section of the report. Data collected will be analyzed and
same will help readers in understanding extent to which management accounting helps managers
in performing different functions of the management. There are some issues that are associated
with use of management accounting methods. Same will also be addressed in systematic way in
the report. Hence, it can be said this research study have lots of significance because in same
management accounting will be analyzed from different sides in systematic way.
Structure of report Introduction- Current research is carried out on the management accounting and its use
in respect to different activities of the business. Introduction is the first section of the
report in which in relation to management accounting brief discussion will be carried out
in respect to function and role of same in respect to varied business activities. Literature review- It is second part of the report and in this different aspects that are
related to management accounting are described. Different author’s state varied things in
relation to management accounting. Same are considered to prepare literature review
section of the report. Critical analysis will be made in this section of report by comparing
thoughts of different scholars in respect to specific aspect of the management accounting. Research methodology- This is one of the most important part of the research study and
in this section of the report information is provided about the way in which research will
be conducted (Zimmerman and Yahya-Zadeh, 2011). In this section of the report, various
things related to approach that will be followed for conducting relevant study are
discussed in detail. Along with this, sample size of respondents and technique that will be
employed in respect to data analysis are also decided and described in this section of the
report. Data analysis- As mentioned above that in research methodology section data analysis
method is determined. In this part of the report data that is collected for research are
analyzed by using appropriate method. Facts that are collected in the research can be
analyzed by using statistical tool or thematic analysis. Out of these methods thematic
Management Accounting: Cost Control and Decision Making_8

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