Managerial Accounting Sample Assignment
Added on 2021-02-19
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Managerial Accounting
TABLE OF CONTENTSINTRODUCTION...........................................................................................................................11. Identifying 3 types of the MA techniques that is been used in the case..................................12. 1.Relevancy of MAS to the contemporary organization in context of case...........................22.2 Contrasting the findings of the case with the another article that is based on the real lifescenarios.......................................................................................................................................33. Conclusions about relevance of MAS......................................................................................54. Outcomes or lessons learned from each articles......................................................................5CONCLUSION................................................................................................................................8REFERENCES................................................................................................................................9
INTRODUCTIONManagerial accounting is basically concerned with identifying, measuring andinterpreting the financial information to the managers and employees by the top levelmanagement in order to achieve the organizational goals and objectives. Management accountingdiffers from financial accounting because it focuses on the implementation and improvement ofbusiness policies and the overall performance of the management of the company. The branch ofaccounting mainly consists of managerial accounting, financial accounting and cost accountingall of them are equally important and failure of one can directly impact the performance ofbusiness. The present study is based on application of modern management accounting system inthe contemporary organization. Furthermore, it includes the systems that are been used by thefirms and its relevancy within the firm. 1. Identifying 3 types of the MA techniques that is been used in the caseIn accordance with the case, the 3 main management methods that are been used by thecompany A includes balanced scorecard, total quality management, ABC etc. Such tools enablesthe organization in achieving efficiency and effectiveness in the management practices in orderto allocate the resources to the activities and thereafter such activities towards the cost objects byimputing casual relations on the basis of volume and the non-volume drivers. ABC analysisstated as the most useful technique as it brings various benefits through removing of thedistortions from the traditional based system and also facilitates the accurate information relatingto cost which in turn helps in making better decisions (Nuhu, Baird and Bala Appuhamilage,2017). This technique helps the organization in making the plans strategically and in operatingits business efficiently. For example- fortune 500 organization executed ABC models which hasbeen founded as costly and the employees faces difficulty in understanding the categories ofABC but it resulted to improved results. Application of the Balanced scorecard tool provides for a powerful framework inbuilding and communicating the strategy. This model helps the firm in visualising the strategymaps that forces the managers in creating cause and effect relationships. Balanced scorecardallows the managers in viewing the major perspectives of the organization that involvescustomers, financial, internal management and the growth outcomes. For example- Company A,1
a manufacturing enterprise implemented BSC that acted as the strategic tools and n makingproper analysis of all the 4 perspectives of the business. Use of TQM method within the organization seeks for the integration of all the functionsof the company which in turn helps in meeting the needs of the customer and attaining theorganizational objectives. For instance- Company A uses total quality technique in the sense ittakes the commitment by its senior managers and the employees in respect of performing thetask with excellence and quality. 2. 1.Relevancy of MAS to the contemporary organization in context of caseReferring to the case it has been reviewed that relevance of MA systems has increasedover the years with respect to contemporary organization because as the trends and thepreferences of the customer is changing with a high pace. This creates an essential for the firmsto opt for competitive strategies and the tools in order to gain competitive edge and leadingposition in the overall market. Application of the management accounting techniques by thecontemporary organization are been evident as the successful execution and the an entity canderive large number of benefits from the new or modern management accounting techniques(Van Diepen and et.al., 2017). The globalised competition and the access to the latesttechnology has induced all the organization that are operating within the contemporary world.With rapid development of the high-end technique, instantaneous communication, increasedcompetition etc, companies are been forced for seeking the comparative advantages forremaining viable. Systems of management accounting helps the mangers in making suitable decisions insuch a dynamic and the competitive environment. Maintaining and designing the effective theMAS has been indicated as the fundamental task for the companies and their managers. Use ofmanagement accounting system by the contemporary organization allows fro developing theisolation of the change within the environment. Adoption of MAS in modern firms has become anecessity fro the purpose of satisfying the demands and the preferences of customers for theinformation. Therefore, flexibility of such types of MA techniques has become consideration atthe time of evaluating the suitability. For example- Company A executed the system that involves functionality whichencompasses the variety of the business functions within which several management accountingsystems are been adopted. In the case as company A shows an emphasize on the strategic matters2
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