TQM Individual Assignment 2022

Running head: INDIVIDUAL ASSIGNMENT 1
Individual Assignment
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INDIVIDUAL ASSIGNMENT 2
Individual Assignment
Q1. Three Specific Examples of Different Management Accounting Methods
Techniques from The Case
The three types of accounting techniques used in the case are Balanced Scorecard (BSC),
Just in Time (JIT), and the Total Quality Management (TQM). TQM refers to the continuous
process applied in detecting and decreasing or eliminating manufacturing errors. Also, it is used
in restructuring of supply chain management, assuring employees have speed in training or
improving client experience. Just in Time (JIT) is a methodology purposing at reducing
production time and response times from customers or suppliers. The other accounting technique
used in the case is the Balanced Score Card technique which is a strategic performance model
developed purposing at translating an organization's vision and mission into operational actions.
From the case study, it is evident that the three accounting management techniques have
been applied by company-A. First, company-A implemented a system which encompasses
various business functions. Since it was faced with a decision concerning the MAS to implement,
the company picked to hedge and implementing multiple choices. Hence, the company built in
its SAP R/3 system various techniques including BSC, TQM, ABC, Benchmarking, Standard
Costing, and JIT (Watts et al., 2014. The company perceived ABM as being non-relevant as the
BFM mentioned in the case study.
Q2i. The relevance of MAS to Contemporary Organizations
The management accounting system is relevance to the contemporary organization
because it is essential in high-quality decision making for any business. Hence, any weaknesses
and efficiencies in MAS reduce productivity and efficiency, leading to creating of various
problems within an organization. The MAS, which is an important subset for the system of

INDIVIDUAL ASSIGNMENT 3
financial or non-financial information offers different information types for users, specifically
managers of organizations. Also, management accounting systems seeks at assigning a device
where the assignment is done with administration permission and selecting of operational goals.
The selected objectives are then distributed across the organization.
The contemporary organizations encounter the phenomenon of conflict among the
various constituents’ portions of the whole system like the subsystems and subsets. The conflict
occurs due to factors like the differences in cognition and perception, norms, ideals, goals,
values, and standards of the managers. Consequently, the dependence on regular organization
parts, uncertainties in responsibilities and roles are some features which should be managed or
resolved through managers tactfulness.
From the case study, it is clear that contemporary management tools assist organizations
in achieving effective cost managing accounting process for allocating resources to actions. After
that, there is the allocation of events to cost items via assigned fundamental relations established
on volume or non-volume associated drivers. For instance, it is known that ABC results in
various benefits by eliminating misrepresentations from the traditional price accounting system
and correct cost info for excellent decision making. Also, ABC leads to more effectual operating
act and strategic decision making. Although the ABC theoretical analysis of ABC seems
superior, its implementation on various businesses shows mixed results. The ABC technique is
excellent in its academic, but enterprises find it challenging in understanding its categories,
allocation or resources and interpretation of results.
Besides, management accounting systems ensure that the organization achieves strategic
objectives. Realizing such goals fulfills customers and stakeholders needs. Hence, MAS enables
organizations to find a suitable position and distinguishing themselves from other competitors. In

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satisfying customers and competing with other producers, there are three elements which should
be stressed on and includes time, quality, and cost. Such three elements form a strategic triangle
which is different from one organization to another or product to another.
Furthermore, MAS is relevant to contemporary organizations because their type and
provision is a significant decision for various firms. Also, MAS is appropriate because of
providing accurate and timely information for facilitating efforts in controlling charges,
measuring and enhancing productivity as well as devising improved manufacturing processes.
The MAS should also indicate precise product costs such that the pricing verdicts, introducing
new items, abandoning obsolete ones, and responding to making opposing products. Moreover,
MAS or the resulting info used in assisting the administration in the decision-making process is
known in the provision of comparative and advantage in a competitive and dynamic
environment.
Management accounting systems are pertinent in contemporary organizations which are
indicated in the case study. For instance, when Company-A was faced with high competition
from rivals, it decided to establish a strategic plan which would make them remain at the
forefront of the production efficiency and technology. The company strategized about the
acquisition of high-tech firms in similar sector, and that depriving mature division was the core
of the tactical direction (Watt et al., 2014). Every new purchase exposed Company-A to new
MAS culminated in a different financial reporting system and managing accounting schemes due
to tactical path of divestment or acquiring. In this case, it is clear that AS are relevant to
contemporary organizations after the incidence of Company-A.
Using contemporary management accounting systems is evident in the case because
company-A made the operational decision making. For instance, the company sets Key