Management Accounting and History Report

Added on - 07 Apr 2020

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Running head: MANAGEMENT ACCOUNTING AND HISTORY1Management accounting and historyInstitution AffiliationName
MANAGEMENT ACCOUNTING AND HISTORY2Management accounting and historyManagerial accounting is an accounting concept that managers use to measure, analyze andreport both the non-financial and financial information that usually assists managers to makedifferent decisions to execute the organization goals. The aspect of managerial accountingoften centers on internal reporting and is not limited by the General Accepted AccountingPrinciples (GAAP) (Boyns, & Edwards, 2013). Taking an example of Great Pyramid of Giza,modern cost management accounting provides ways to appropriately allocate cost to costdrivers and hence doing this aspect can accurately assist create budgets that can be used tocompare the actual performance and subsequently correct inefficiencies.In an effort to attempt to recreate Great Pyramid of Giza structure of Egypt, advanced costmanagement accounting can be utilized so as to determine the amount of funds that should beallocated to each part of the structure. The diverse structures in the Great Pyramid of Gizacould be used as cost bases so as to enhance the modern cost management accountants todetermine the amount of funds to be invested in restructuring (Giovannoni, Maraghini, &Riccaboni, 2011).With Great Pyramid of Giza perspective, modern cost accounting management can allocatecosts to specific cost driver such that the material costs can be allocated to materials and laborcosts can be allocated to labor. Furthermore, the modern cost accounting management cancreate a prospective budget of the construction that can be periodically compared to actualperformance so as to correct the inefficiencies in recreating the Great Pyramid of Gizastructure.How budgeting be viewed as a political processBasically, the budget is considered to be an estimate of costs, revenues, and resources over aparticular period reflecting future financial conditions and goals (Edwards, 2013). In thiscase, budgeting can be viewed as a political process through its functions. Budget can assist
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