Critical Analysis of Management Accounting System in Business

This report provides a comprehensive overview of the management accounting system, emphasizing its crucial role in business decision-making. The report begins with an overview of the journal, referencing relevant theories and practices in management accounting. It then summarizes the journal's aims, tests, and findings, focusing on how management accounting systems adapt to economic transitions. A critical assessment follows, evaluating the system's effectiveness in achieving its objectives and the validity of its findings. The analysis includes the use of various methods and theories, such as the T-test and contingency approaches, to assess the information's impact on decision-making within organizations, particularly in transition economies. The report highlights the importance of timely and accurate information for adapting to market changes and financial crises, as well as the use of surveys and questionnaires for in-depth analysis. The conclusion emphasizes the essential role of management accounting in guiding organizational changes and improving the quality of decisions. The report references several books and journals to support its analysis.

Article summary
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Table of Contents
PART – 2: REPORT........................................................................................................................1
1. Overview of the journal by reference to theory and practice in management accounting......1
2. Summary of journal aims, tests and findings...........................................................................1
3. Critical assessment to met the aims and established findings.................................................2
7 Conclusion................................................................................................................................3
REFERENCES................................................................................................................................4
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PART – 2: REPORT
1. Overview of the journal by reference to theory and practice in management accounting
Management Accounting System plays a very crucial role in carrying out the various
decisions related to the system of the business. It reflects the high- quality decision that has to be
properly organized and planned. Management Accounting System explores each aspect in order
to determine the areas which are affected with the changes in the economy. There are various
methods and theories which are adopted by the organization in order to make the decisions
relating the various aspects. There are various levels in the organization which uses the
information which is presented to them in order to make the decision regarding the variou8s
aspects. It determine that the top and the middle level management use information in order to
focus on the various issues which are faced in the Transition economies and the less developed
countries organization structure. They develop the questionnaire in order to analyze the various
theories and the techniques which they implement in order to bridge the gap which is occurred
during the process of the decision making. They properly design the formats so that the
deviations can be evaluated and the desired efforts can be made in order to analyze the
performance and meet the risk.
2. Summary of journal aims, tests and findings
The aim of the study is to analyze the role of the management accounting system and the
changes which are being introduced over the time period over the different perspective of the
transition economy. This reflects the problem which arises over the period of time due to the
changes occurs. As comparable with the economies of the developed and the less developed
countries it shows the significantly changes which are associated with the current practise and
the development which are associated with the management accounting system. The main
objective of the management accounting system is providing the useful information which is
related to the various attributes. These attributes are essential as they are designed to provide the
scope to the organization to develop and expand their focus on planning and taking the corrective
action which would be beneficial for the organization to meet the changes in an effective
manner. Management accounting system is oriented towards the integration of most effective
process which aims at proper analyze of the information which defines the objective of the
organization and also reflects the positive effects on the organization.
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Various tests are being conducted in order to ensure the high quality of the decision
making is done in the business and the management accounting system has been the major
source of the information for the organization to take the decisions related to the management of
the various changes which are present in the system in which the organization operates. There
are various test and methods which are used to collect the information for the purpose to analyze
the quantitative aspects of the organization. The analysis is being done with the help of T-test to
measure the significant statistical frequency of the management accounting system information
over the time span (De Winter, 2013). This study also includes the survey which is conducted as
per the designed format which helps to study the changes in the environment and suggest the
measures in order to deal with them. They also adopt the contingency approach as it is
implemented to all type of the organizations as the management accounting system can be
designed flexible to adopt the specific circumstances. They also adopt the quantitative research
method to analyze varied aspects which affects the entire functioning of the companies within
the industry.
The findings reflects the management accounting system should be designed in such a
manner that the entire information is being utilized in an effective manner to meet the changes
which is occurring in the environment in which the organization operates.
This study also reflects that the crucial changes are to be made regarding the timeliness which
reports the frequency and speed of reporting the information related to the changes so that the
organizations which are being surveyed as a sample in the study can respond at the rapid speed
to the changes which are occurred in the environment.
With the help of the questionnaire the study critically evaluates the performance aspects
can be determined as the findings reflects that the improved actions are being ascertained to meet
the financial crises and the increased market uncertainty (Gillham, 2008).
3. Critical assessment to met the aims and established findings
This study critically evaluates the various aspects which are related to the top
management and the middle management of the organization. There are various approaches
which are ascertained by the management accounting system to carry out the effective decisions
related to the implementation of the changes which are occurring in the external environment of
the organization. According to author Mistry, Sharma and Low (2014) in this study the data
related to the number of the employees of the different organization are critically reviewed on
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the basis of the result to understand the major source for the development of the management
accounting system. This study also critical review the various aspects which are considered by
the organization to analyze the various information related to the different levels on the weekly,
monthly and the annual basis. It also focuses on the information provided by the management
accounting system to classify the various aspects related to the liquidity and the overall
functioning of the various organizations which are analyzed to monitor and properly evaluate the
market uncertainty and the changes which may affect the sales of the companies. According to
author De Winter, (2013) the techniques of the T-test are being adopted by the management of
these companies to meet and overcome the financial crisis which are faced by them and make the
appropriate decisions to manage it.
7 Conclusion
Management accounting system is the essential element which is being used to determine
the various perspectives which are necessary to implement the changes in the organization in
order to manage the various functioning of the business. The project dictates the major aspects
which are necessary in order to take the decision related to the management of the data which
indicates the amount of the effectiveness to implement the change. This also helps to properly
analyze the findings to manage the information so that the functioning is carried out in an
effective manner. This also enhances the quantitative aspects of the research which is being
conducted to ensure that the prior studies are being conducted to claim the desired changes in the
organization (Thomas, 2003). The various surveys are conducted which review the in-depth
study of the various aspects which are related to the performance of the organization. It also
ensure that the information which is provided by the management accounting system is effective
for taking the long term and the short term decision which determine the functioning of the
organization. Significantly all the changes are determined which contributes to the current and
future perspective of the various level of management.
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REFERENCES
Books and Journals
Gillham, B., 2008. Developing a Questionnaire. A&C Black.
Mistry , V., Sharma , U. and Low , M., 2014. Management accountants' perception of their role
in accounting for sustainable development: An exploratory study. Pacific Accounting
Review. 26 (1/2). pp.112 – 133.
Thomas, M. R., 2003. Blending Qualitative and Quantitative Research Methods in Theses and
Dissertations. Corwin Press.
Online
De Winter, F.C.J., 2013. Using the Student’s t-test with extremely small sample size. [Pdf].
Available through : < http://pareonline.net/getvn.asp?v=18&n=10>. [Accessed on 4th
December 2015].
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