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Paper on Managerial Accounting Assignment

   

Added on  2021-02-20

11 Pages3559 Words23 Views
MANAGERIALACCOUNTING

Table of ContentsINTRODUCTION...........................................................................................................................1QUESTION 1...................................................................................................................................1Identification of different types of management accounting methods and techniques fromgiven case.....................................................................................................................................1QUESTION 2...................................................................................................................................3Relevance of MAS in the context of contemporary organisations..............................................3QUESTION 3...................................................................................................................................4QUESTION 4...................................................................................................................................5CONCLUSION ...............................................................................................................................8REFERENCES................................................................................................................................9

INTRODUCTIONThe concept of Managerial Accounting consists of a variety of internal systems whichenable the business to analyse, evaluate and measure their internal as well as externalenvironment in an effective manner so as to facilitate informed decision-making practice by themanagement across all organisational levels (Balina and Idasz-Balina, 2018). Some of the mostimportant components of managerial accounting include budgets and internal managementperformance reports among others. This report aims to provide a Journal Article Critique,specifically two articles. These are mainly related to implementation of modern managementaccounting systems as well as Australasian Accounting Business and Finance largely focusing onevidence from Bangladesh regarding Board Composition as well as Firm Performance.Additionally, it compares and contrasts the two articles supported by relevant evidences on thebasis of which inferences are drawn. These help in drawing conclusions regarding whether or notMAS is relevant to organisations in the present day scenario. QUESTION 1Identification of different types of management accounting methods and techniques from givencaseEssentially, Management Accounting can be defined as the provision of financial datato the management of the company in order to facilitate informed decision-making practicewithin the organisation. This includes a variety of techniques and methods that may be adoptedby the firms based on the operational requirements of the company. Adoption of suchmethodologies was mainly related to either bringing about a long-term strategic change or ashort-term operational one (da Cunha, Toigo and Picolli, 2016). In the context of given casescenario, the following methods have been identified and discussed as under:Activity Based Costing (ABC):In regards to the Contemporary Management Accounting Tools, this technique assists theorganisation to achieve economies of scale by providing the benefits of effective costmanagement practices. This was established to provide a way of generating a far more precisedepiction of how the operations carried out to create a product or service effectively affect theexpenses. ABC also helps in removing distortions from traditional cost accounting systems, thus,enabling the business to acquire accuracy in determination of costs for their product or service1

offerings. The case study also dwells upon the fact that such a technique is effective in allocatingresources to activities which are further helpful in identifying cost objects through imputedcausal relations based upon volume and non-volume related drivers. Just-In-Time (JIT):In present day scenarios, manufacturing companies undertake this managementaccounting technique so as to enhance their overall production process. Just-In-Time can bedefined as the workflow methodology wherein the primary focus is placed on the optimisation ofproduction flow times along with response time from suppliers as well as towards customers. Inthe context of given case scenario, the multinational manufacturing company would includedifferent types of inventory such as Raw Materials, Finished goods and Work-in-Progress.Implementation of JIT would ensure that there is a complete alignment between productionschedules and supplies acquisition for the purpose of undertaking such an activity within theorganisation (de Faria, 2017). As a result, the overall efficiency is increased as the wastegenerated during the manufacturing procedure is minimised. At the same time it have somedrawback also such as it require more planning because companies need to have a closeunderstanding of their marketing patterns and variances. Most firms have temporary sales cycles,which means that owing to greater supply a amount of products will need a greater inventory rateat certain moments of the year. Furthermore, manager will have to make sure that providers canfulfil distinct quantity demands at distinct moments in preparation for inventory rates.Total Quality Management (TQM):This type of management accounting technique is one which is applicable across allorganisational levels and chiefly lays its focus upon the continual improvement of all thosebusiness processes that are mainly related to the quality of inputs as well as outputs. In thecontext of given case scenario, through the implementation of TQM, the multinational companymay be able to eliminate or diminish errors which are commonly found during the manufacturingprocess. This guarantees that each worker works to strengthen the job culture, procedures,facilities, structures, and so on in order to guarantee long-term achievement. As a result, itenhances safety as well as the overall customer experience which in turn creates competitiveedge for the business within an ever-evolving environment. 2

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