He was saying that without the value of predicting what could be expected given the assumed knowledge of the surrounding circumstances, organizational control could not be expected to materialize. Management accounting system produces information that is used within an organization, by managers and employees. Cash flow, fund flow, ratio analysis, trend analysis, and comparative financial statements are the tools normally used in management accounting to interpret and analyze accounting … All of this information forms the basis for identifying the key performance indicators of the various parts of a business. The answer is in the affirmative on the premise that. This researcher’s interpretation and opinion about the article is that management accounting is still the generic thing on using accounting information for the purpose of organizational control. Simmonds, K. (1981), “Strategic management accounting”, Management Accounting, Vol. To conclude, this research finds the assertions of the author to valid and appropriate in relation to his declared objective in making or writing the article. An effective management accounting system reaches into all departments of a business: finance, IT, marketing, human resources, operations and sales. The author was very much logical in pointing the need to move outside the confines of management accounting. For example, increased automation has reduced labor, which is a direct cost, but has incr… The personal experience of this researcher on matter appears to confirm the limitation of management accounting as described by author if it will remain within its own confines. Essay, Use multiple resourses when assembling your essay, Get help form professional writers when not sure you can do it yourself, Use Plagiarism Checker to double check your essay, Do not copy and paste free to download essays. Is there basis to with the major contention of the article? The strength of the lies in its giving credit to what have been achieved in the past in terms of management accounting concepts and pointing the need for address evolving problems in management accounting that could be addressed in the research. It is this researcher’s assessment that the author’s recommendation may be considered appropriate and practical in relation to the declare objective of the article. Managerial accountants design information systems to provide executives with the data they need to run their businesses effectively and reach their goals. Property management accounting software offers a number of features that typical accounting systems do not. Managerial accounting identifies the actual direct costs, profits and cash flow of products and services. Based on his assertion, the author has recommended for the need to move outside the confines of management accounting and even management control systems, which impose according to him imposes blinkers on people’s thinking that must be removed. The criticisms made by the author on the management accounting concepts are valid and the essence of organizational control remains to be focused regardless of how terms may have changed or evolve through the years. Get Your Custom Essay on, By clicking “Write my paper”, you agree to our, The Background And Evolution Of Management Accounting Systems Accounting, Cost Accounting Is An Important Aspect Of Any Management Accounting Accounting, Improving Information Systems and Internal Controls of the Yuma Snowbirds’ Accounting, Accounting Information Systems and Ethics, https://graduateway.com/management-accounting-systems/, Get your custom Activity-based costing was first clearly defined in 1987 by Robert S. Kaplan and W. Bruns as a chapter in their book Accounting and Management: A Field Study Perspective. The reports aid in decision-making and identifying ways to run the company more efficiently. They initially focused on the manufacturing industry, where increasing technology and productivity improvements have reduced the relative proportion of the direct costs of labor and materials, but have increased relative proportion of indirect costs. You can get your custom paper from 231-44. Copyright 2020 Leaf Group Ltd. / Leaf Group Media, All Rights Reserved. As confirmed by the researcher in term of practicality and appropriateness, this researcher agrees substantially by the claims of the author. Management of business has evolved from the time management accounting has started and with the many changes in the environment, there is need to go for new frameworks for developing and research topics on the subject. Berry, A.J. After all, all business activities are but ways to satisfy needs and wants of people (Doyle, & Stern, 2006; Hill, & O’Sullivan, 2003; Dlabay, et al, 2005) not only the management and stockholders but the rest of the society.