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Nature & purpose of management accounting
Nature & purpose of management accounting
Nature & purpose of management accounting
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Excellence in manufacturing and service enterprises can provide a competitive weapon to compete in the worldwide markets. In order for the competition to be effective, organizations have to perform under a combination of triple, strategic priorities, management techniques and management via accounting (MA). As a first part, the essay will define (MA) Under Chandler’s book ‘The Visible Hand’. It will also explain three advantages, of how (MA) assists in modern business enterprise and the new line and staff structure to enable economic, efficient and effective administrative coordination. Moreover, my opinion will be provided based on my most important advantage of all three. As a second part, the essay will descripte how (MA) enables Ryanair to guarantee an economy, efficient and effective function under low fuel load carried. Then, according to my view as a Ryanair’s manager, an explanation will be provided to the flight crew concerning safety which is the number one priority of the company.
Accounting is considered to be a Social and institutional practice, one which is constitutive and intrinsic to social relations (Hopwood, 1994, pg1). In case of (MA), internal users like managers are provided with (MA) information (Seal, 2009, pg4). This information focuses on both human performance and product services costs. It also gives the responsibility to managers to take measures according to the planning, directing and motivating and controlling of the business (Young, 2003, chapter5). Modern managerially-run enterprises was first established by Chandler in the United States between ‘1830 to 1860’(Chandler, 1977, pg3).It makes possible the world of oligopolies, which brings imperfect competition and misallocation of resources. It is...
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...AEwAg#v=onepage&q=Anthony%20Hopwood%2C%20Accounting%2C%20Organization%20and%20Society&f=false pg1
Management accounting book of lecture pg 4
Chapter 5 http://books.google.co.uk/books?id=76lPNZLqS10C&pg=PA239&dq=management+via+accounting&hl=en&sa=X&ei=84qSUp-NDrKu7AbN94HwAQ&ved=0CFYQ6AEwAw#v=onepage&q=management%20via%20accounting&f=false
Chandler pg3 http://books.google.co.uk/books?id=7Q_2Zg8hGUMC&pg=PA59&dq=the+three+'E'S'+economy,+efficiency+and+effectiveness&hl=en&sa=X&ei=w66UUqm4BOr8ygP58IGoBw&ved=0CDIQ6AEwAA#v=onepage&q&f=false pg 59 http://ccs.mit.edu/papers/CCSWP195/CCSWP195.html http://www.telegraph.co.uk/travel/travelnews/10194800/Ryanair-investigation-prompts-call-for-new-fuel-guidelines.html
http://www.independent.co.uk/travel/news-and-advice/exclusive-safety-warning-as-budget-airlines-such-as-ryanair-cut-fuel-levels-for-flights-8749046.html
Accounting Theory: Conceptual Issues in a Political and Economic Environment (6th edition ed.). South Western College Pub.
To calculate the valuation of Ryanair, the firm's future revenues and costs, as well as the firm's current accounting value must be calculated. To account for a range of possibilities, three different valuations have been calculated through 2012. These are called Annual Report, Valuation 1, and Valuation 2. Descriptions of each of these valuations will develop as the revenue and cost modeling are discussed. A description of the valuations will conclude the Analysis portion of this document.
Olusegun Wallace, R. 1996. The Development of Accounting Research in the UK. In: Cooke, T. and Nobes, C. eds. 1997. The Development of Accounting in an International Context. London: Routledge, pp. 218-254.
The literature suggested that “Rapid changes in the external environment of organisations have been accompanied by calls for accountants to change the nature of information they provide, the skills they possess and the role they play in the organisation. The proposed changes, which are encapsulated under the phrase accounting for strategic positioning or strategic management accounting are two pronged. On one hand accountants are required to reposition themselves in the organisation hierarchy where they will be involved in the formulation, implementation and choice of strategies. Accountants are also being urged to adopt a range of techniques whose emphasis is futuristic and external to the firm especially emphasizing the importance of monitoring customers and competitors.” (Nyarnori, 2000). Based on my studies on the industry of stock brokerage, I agree with the statement that “The tools and techniques that were covered in the Strategic Cost Management and Strategic Business Analysis courses are very useful in providing decision oriented information to senior management in my organisation and such information will ultimately enhance its corporate value.” The essay (How Porter’s Five Forces Model shapes strategy for a new and small-size stockbroker) may be one of applications of those techniques learnt from the Strategic Cost Management and Strategic Business Analysis .
We can also identify the weaknesses of Ryanair in accordance to scientific management. From what we have previously discussed in the essay we now know that there are a few points from Douglas McGregor’s theory X that can relate to scientific management. However these key points also have influences on Ryanair, which can come across as
Management accounting in organisation is very important for decision-making and to make the business more efficient and therefore increasing its profits. Is the process of preparing accounts that can help managers to make day-to-day and short-term decisions, by providing them with accurate and timely key financial and statistical information...
The aim of this report is to carry out a strategic analysis of Ryanair. This will involve investigating the organisation’s external environment, to identify opportunities and threats it might face, and its strategic capability, to isolate key strengths and any weaknesses that need dealing with. Finally, a SWOT analysis will be carried out to assess the extent to which Ryanair’s strategies are suitable to what is happening in its task environment.
Financial accounting is the analysis, classification, and recording of financial transactions and reporting such information to respective users especially external users who use the information to make decisions about their engagements with the entity. In financial accounting general purpose financial statements are used for external reporting. The public by standards imposes the development of the statements through respective national professional bodies, International Accounting Standards Board and respective company Acts for various nations.
Marshall, D., McManus, W., & Viele, D. (2004). Accounting: What the numbers mean. [University of Phoenix Custom Edition e-text]. New York, NY: McGraw-Hill Companies.
The revenue/cost period-: Revenue and the cost period in accounting that the company get income from normal business activities. It’s referred to normal business income that the company got by selling their product and service.
The history of accounting I feel is important in the learning, understanding, and developing of my foundation for my accounting career. In this report you will learn about the development of accounting. You will learn about the people who influenced accounting the most throughout the years. You will learn how accounting came about and how it was used in the ancient times. You will learn about the invention of the double-entry bookkeeping processes. You will learn how things were done before the birth of the double-entry bookkeeping process. You will learn about Luca Pacioli and the Summa. You will also learn about modern accounting and ACAUS.
Accounting is a system for measuring and summarizing business activities, interpreting financial information, and communicating the results to management and other stakeholders to help them make better business decisions.
Accounting has been a living part of history since the Neolithic period and remains a prevalent and ever-evolving profession still to this day. This essay therefore proposes to look at the significance and role of history specifically related to the accountancy field. In order to substantiate this claim of the importance of accounting history, numerous benefits of accounting history will be presented. Factors such as the use of historical research and its availability thereof to constantly develop accounting policies will be discussed as well as how historical accounting practices can be used to understand current practice and assist in the training of individuals in the accounting field. Lastly, the importance of history in the development
Accounting is a very important term to our modern society. It is the career for men and women who at the start have their eyes set on top positions in industry, management, government, and general business. Accounting is a basic need of every businessman, from the operator of a filling station to the government of the United States. It's so important to our society. None of the business organization can operate without is. They are there-somewhere-in every business. In small business, people use pen, ink and skill keep the records. In large business, modern accounting machines are used to operate. Men and women are directing these machines in the accounting process. Wise businessmen enter business must have some accounting knowledge.
The importance of responsibility accounting is that it’s essential to very large organizations, but extremely advantageous as well for small to medium sized (SMB) businesses in general, because this method of accounting allows a business to explain whose, what, when, where and why, and justify if necessary, money is invested and spent concerning a company’s finances. There is also the aspect of better management through collection of pertinent data and reporting of this data from each individual department within larger organizations. There are many examples of companies that today use responsibility accounting principles.