Relevance of Management Accounting System in Uncertain Business Environment

Running Head: MANAGERIAL ACCOUNTING
MANAGERIAL ACCOUNTING
Name of the Student
Name of the University
Author Note

1MANAGERIAL ACCOUNTING
Abstract
The modern organizations are becoming increasingly complex because of the rapidly
changing as well as highly competitive environment. It is because of the
globalization, technological advancement, economic liberalization, the existence of
the business organization have become tougher than it was before. The existing
practice of managerial accounting has lost their relevancy with the recent
environment of the business organization. The continuous changes in the
environment of the business has influenced the practices of the management
accounting as well as activities of the organization because of the changes in the
regulations, intense competitions, globalizations as well as globalization. Hence, the
aim of this assignment is to evaluate critically the role of the systems of the
management accounting as well as provisions of the accounting information for case
companies.

2MANAGERIAL ACCOUNTING
Table of Contents
Introduction...............................................................................................................................3
Discussion................................................................................................................................4
Answer 1)..............................................................................................................................4
Management Accounting Techniques used in Case Study......................................4
Answer 2)..............................................................................................................................6
Relevancy of Management Accounting System to Contemporary Organization. .6
Answer 3)..............................................................................................................................9
Management Accounting System Relevance in Uncertain and Competitive
Business Environment....................................................................................................9
Answer 4)............................................................................................................................12
Research Finding’s from the Cases...........................................................................12
Conclusion..............................................................................................................................13
Reference...............................................................................................................................15

3MANAGERIAL ACCOUNTING
Introduction
Management accounting is considered to be the significant resources of the
accounting, which extensively help the business organizations for incorporating the
data of cost accounting, financial as well as non-financial accounting. It involves
preparations as well as providing timely financial as well as statistical information for
the business managers so that they could be making day-to-day as well as short-
term managerial decisions. The manager uses management accounting systems for
the development, communication as well as implementations of their strategy. It is
used for coordinating the design of the product, production as well as marketing
decisions and for the evaluations of the operating performances of the company
including the employees. The reports as well as management accounting information
does not requires for following the set of the principles or the rules that are required
by the different agencies of the government. However, if there is any kind of
weaknesses and inefficiencies in the system of the management accounting then
their productivity as well as efficienciesis reduced that creates number of problems in
organizations (Suomala, Lyly-Yrjänäinen and Lukka 2014).
Hence, under this assignment, evaluations will be done on the management
accounting system as well as provisions of the accounting information for the case
company. Further, identification of the different types of the methods of the
management accounting or the techniques will be discussed. Moreover, relevancy of
the management accounting system to the contemporary organizations will be
discussed. In addition, relevance of the management accounting system in the
today’s uncertain as well as competitive business environment will be discussed.
Lastly, conclusions will be given based on the findings.