HI5017 Managerial Accounting: Case Study Analysis and Journal Critique

This assignment provides a comprehensive analysis of managerial accounting principles through a case study approach and a critical evaluation of a relevant journal article. The case study examines the application of cost concepts in a service-based company, demonstrating the student's und...Read More

Running head: MANAGERIAL ACCOUNTING
Managerial Accounting
Name of the Student:
Name of the University:
Author’s Note:
Course ID:

1MANAGERIAL ACCOUNTING
Table of Contents
Part B: Journal Article Critique....................................................................................................2
1. Identifying the components of the management accounting system in each of the two
companies and discussing the relevance in enabling decisions to be made efficiently:...2
2. Explaining how management accounting contributes to the innovation process, while
including two specific examples from each of the two companies in the journal article:...3
3. Providing four specific outcomes or lessons learned from the article research, while
justifying the answer:....................................................................................................................4
References:....................................................................................................................................5

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Part B: Journal Article Critique
1. Identifying the components of the management accounting system in each of
the two companies and discussing the relevance in enabling decisions to be
made efficiently:
Planning, controlling, strategy and decision making is considered to be the major
components of the management amounting system that is being used by the companies
in their operations. Moreover, the managerial accounting is also considered to be a
process that helps the organization to analyses their cost and financial data for
effectively improving the managerial decisions conditions. In addition, management
accounting system has been popular all around the world, as global organization have
been utilizing the method for effectively improving their current operations.
Journal [“Towards a new theory of innovation management: A case study comparing
Cannon, Inc. and Apple Computer Inc.”]
The above journal is related to the overall application the management
accounting system that has been supporting the operations of the organization. In
addition, the journal directly provides information about Apple Computer Inc. and
Cannon Inc., who are one of the major contributors to the technology industry. The
journal directly highlights and discloses Cannon Inc, as the market leader in photocopier
segment, while the Apple Computer Inc. is considered the market leader in
manufacturing innovative and premium computers. Both the companies are based on
technology, while their success depends on the competitive situation and the core
management of the organization. Likewise, the journal directly provides information
about the information and sharing process that is used in both the organizations to
effectively innovate new and futuristic products that could support the operations and
innovative perspective of an organization. The technology market is considered to be
ever changing, where relevant alternations in the research and products needs to be
conducted by the organization over the period of time (Nonala and Kenney 1991).
The journal has directly highlighted that the current the major innovative process
of Cannon Inc. relies on the feasibility study by evaluating the new product from the
various departments of the company. On the other hand, the struggle and innovation
that has been presented by Apple Inc. has been remarkable, which has only achieved
by utilizing the effective managerial accounting tools and techniques that help the
management to share the system and information, which pave the way for creating new
and innovative products. Therefore, the evaluation of the journal has relevantly helped
in detecting that the significance of the management accounting, which enables
organization to support their operations.

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2. Explaining how management accounting contributes to the innovation process,
while including two specific examples from each of the two companies in the
journal article:
Managerial accounting is considered to be an adequate process, which allow the
organization to effectively fuel its innovative drive, which in turn could help in improving
the management system, while progressing the business decision making process. The
case study highlights about both Apple Computer Inc. and Cannon Inc. innovative
process that has been used by the management to support their operations. The journal
has directly highlighted that that innovative process in a firm’s management has allowed
both the companies to improve their information transfer. Therefore, it could be
identified that the creation of information and sharing allows the organization to improve
the management process, as both financial and non-financial information are evaluated
by the management before making any relevant decisions. Hence, from the evaluation
the journal, it can be detected that the creation and sharing of useful information with
the executives and management has allowed companies to improve their innovative
drive and develop futuristic products.
Therefore, from the analysis, it can be detected that management executives are
able to utilize both non-financial and financial information for supporting the business
level decisions making process. Therefore, from the relevant evaluation of the journal
significance of the business information system can be detected, which allows the
businesses to improve their efficiency and innovation in the products. The analysis has
also indicated that the strong alternations among the executives, engineers, employees
and management has allowed Apple Inc. to improve their overall innovative process, as
all the relevant information is adequately transferred from one level to another level.
Thus, it could be identified that Apple Inc. used the efficient information creation and
information sharing system to support and process all the relevant managerial problems
(Nonala and Kenney 1991).
The relevant case study has mainly indicated that companies try to solve the
managerial issues with the help of management accounting, as it adequately helps in
improving the level of operations and business decisions. Therefore, companies by
implementing the normal management process are able to support the business
decisions and create relevant innovative products. The major example of Cannon can
be used under the situation, where the company’s management was responsible for
utilizing the technological advancement and innovation of creating an innovative mini
copier. The use of adequate traditional managerial practices has allowed the
organization to complete the innovative process and develop new product range. Thus,
it can be detected that with adequate innovative information creation and information
sharing process is necessary for improving the efficiency in the management and
managerial decisions making process of the organization.

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3. Providing four specific outcomes or lessons learned from the article research,
while justifying the answer:
From the evaluation of the article research relevant lessons and outcomes can
be learnt, which can help organization to improve their current operational capability.
The management is considered to be the most effective part of an organization, where
all the relevant components of the business can be utilized by the company for
effectively maximizing the organizational efficiency. In addition, the major significant
function of the management is to conduct relevant decisions-making process and
resource management, as it is essential for the growth of the organization. The analysis
has mainly indicated that decisions making process used by the management is
considered to be the most significance operations, as it directly relates to the success of
an organization. therefore, it could be identified that management is considered, as the
major players in an organization, where it helps the organization to increase their
competitiveness in the market, while thriving to achieve short term and long term
organizational goals.
The second major outcomes from the article is that the information management
and information system is an affective process, which allows the management to
conduct relevant decision making process. In addition, it can be detected that with the
help of an effective management team the contribution towards the decisions making
process of the organization is enhanced, which in turn helps in fulling the organizational
goals. The analysis of the case study has mainly helped in analyzing the journal, which
has indicated about the use of an adequate information system to improving the
competitive edge of Apple Inc. and Cannon Inc. over the period of time. Both the
companies have survived the competitive market by innovating new products and
services, which can be used by the end user.
Hence, the innovation in the information sharing system and information creation
is essential for an organization, as it directly affects the decision-making process of the
management. In addition, the innovation in the organization creation process directly
helps in analyzing the financial and non-financial information related to the origination,
this eventually help he executing management decision that might help in supporting
the department and segments of the company, which can un tune have better decision-
making process in their operations. Lastly, the fourth outcome from the analysis has
directly indicated that managers need to utilize the data presented from the
management information system, as it would help in generating high level of income
from operations (Nonala and Kenney 1991).

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References:
Nonala, I. and Kenney, M., 1991. Towards a new theory of innovation management: A
case study comparing Canon, Inc. and Apple Computer, Inc. Journal of Engineering and
Technology Management, 8(1), pp.67-83.