Managing Accounting: Styles, Merits, and Demerits

MANAGEMENT
ACCOUNTING

INTRODUCTION.........................................................................................................................3
MAIN BODY..................................................................................................................................3
Critically asses of various style of managing accounting with their merits and demerits...........3
Identify critical link between budgeting and short-term decision making..................................6
Evaluate merits and demerits of participatory budgeting with its implication on business
performance.................................................................................................................................7
CONCLUSION..............................................................................................................................8
REFRENCES.................................................................................................................................9

INTRODUCTION
Managing accounting is the process by which an organization is able to maintain its
accounting. In management accounting or managerial accounting, managers use the provisions
of accounting information in order to better inform themselves before they decide matters within
their organizations, which aids their management and performance of control functions. Scope of
managing accounting is wider in nature because it deals with information regarding accounting.
Nature is very dynamic because it impacts decision making of an organization. In this essay
things that is going to be covered is based on managing accounting. In this essay benefits and
demerits is to be explained over various styles of accounting. Also link between short-term
decisions makings. In the end participatory budgeting and its implication on business
performance is covered.
MAIN BODY
Critically asses of various style of managing accounting with their merits and
demerits
Management in accounting is that kind of process which is helpful in making an
organization keep data over the expenditure that is being made by an organization in order to
complete project or task that has been accomplished or is about to accomplish. Various kinds of
management accounting system exists to help an organization manage its accounts. Accounting
system are inventory, cost accounting, price optimization and job accounting system with lot of
accounting objectives, elements and functions. Further accounting system has been explained as
follows in detail and basic element involved in it helps in making standardization context in
order to aim for data that has been analyzed, identified and communicated (Pelz, 2019).
Cost accounting system or costing system is the framework applied by the corporation
to approximate the cost of its products for inventory valuation, profitability analysis, and cost
control. In the cost accounting system allocation of cost is performed based on either activity-
based costing system or traditional costing system. Approximating the actual products’ cost is
crucial for effective functions.
Advantages of it has been given as follows
Elimination of Wastes, Losses and Inefficiencies this means that a good accounting system
always focuses upon reduction of wastage, loss and inefficiencies through fixing standards for
everything.