...The Role of Management Accounting in the Organization The purpose of management accounting in the organization is to support competitive decision making by collecting, processing, and communicating information that helps management plan, control, and evaluate business processes and company strategy. The interesting thing about management accounting is that it is rare to find an individual within a company with the title of “management accountant.” Often many individuals function as accountants within the organization, but these individuals typically operate as financial accountants, costs accountants, tax accountants, or internal auditors. However, the ability to develop and use good management accounting (which covers a lot more ground than the product costing done by cost accountants) is actually an important ability for many individuals, including finance professionals, operational and marketing managers, top-level executives, and information technologists. Generally, in a very large company, each division has a top accountant called the controller, and much of the management accounting that is done in these divisions comes under the leadership of the controller. On the other hand, the controller usually reports to the vice president of finance for the division who, in turn, reports to the division’s president and/or overall chief financial officer (CFO). All of these individuals are responsible for the flow of good accounting information that supports the planning...
Words: 1578 - Pages: 7
...examination Chapter 1: 1- List and describe four reasons why information systems are so important for business today? Answer: - Capital Management - Foundation of doing business - Productivity - Strategic opportunity and advantage 2- Describe five technology and business trends that have enhanced the role of information systems in today’s competitive business environment: Answer: (chapter 1: page 8) - Internet growth and technology convergence - Transformation of the business enterprise - Globalization - Rise of the information economy - Emergence of the digital firm 3- Describe the capabilities of a digital firm. Why are digital firms so powerful? Answer: - Digital firm is one in which nearly all of the organization’s significant business relationships with customers, suppliers, and employers are digitally enabled and mediated. - Digital firms are so powerful because all companies can use internet technology for e-commerce transactions with customers and suppliers, for managing internal business process, and for coordinating with suppliers and other business partners. E-commerce includes e-commerce as well the management and coordination of the enterprise. And also digital management of key corporate assets. 4- What is information system? Distinguish between a computer, a computer program, and an information system. What is the different...
Words: 2234 - Pages: 9
...defines eleven functional areas of business, including management, law, human resource management, leadership, accounting, finance, economics, research and statistics, operations management, marketing, and strategic planning. In order to succeed in business, the organization must bring together the functional areas accordingly to achieve organizational goals. A critical role in any business is the manager. The manager plays an important part in utilizing each area to align the organization collectively towards economic prosperity. In this paper, I will examine the role of the manager in each of the functional areas of business. A business organization is a very complex structure. In order to be successful, a business needs to coordinate and organize many areas within the organization to achieve its mission. According to the University of Phoenix’s MBA Overview Model (2014), the functional areas of business include management, law, human resource management, leadership, accounting, finance, economics, research and statistics, operations management, marketing, and strategic planning. An essential component to any business that intertwines the functional areas is the manager. The role of the manager plays an important part in utilizing each area to align the organization collectively towards economic prosperity. In this paper, I will analyze the role of the manager within each of the functional areas of business. “Management and organization lie at the heart of performance of...
Words: 1253 - Pages: 6
...Reporting Practice and Ethics HCS/405 Health Care Financial Accounting June 29, 2015 In order to function properly, every company or organization should have a financial plan in place. Health care organizations are part of the service industry and are no exception and cannot successfully operate without proper financial management. Financial management involves the managing of organizational funds in order to meet organizational goals and plays an important role in helping organizations work more effectively. According to Hicks (n.d.), “within accounting and financial management, there are four key elements recognized. The four elements are: Planning, Controlling, Organizing and Directing and Decision Making.” As with all other organizations, health care organizations must follow general ethical standards of conduct and financial reporting practices known as the General Accepted Accounting Principles (GAAP). The four elements of financial planning are set in place to help the financial process operate properly. The purpose of each of these tasks is as follows: * Planning - helps identify the organizational needs and objectives as well as the steps necessary to meet these needs; * Controlling – involves comparing current and past reports or feedback in order to determine if any area of the organization is ineffective or simply needs help. Controlling also ensures that the plans set in place during the planning process are being followed. * Organizing and directing –...
Words: 735 - Pages: 3
...Introduction Accounting is the core of a business or organization as it helps to provide the necessary information which is required to make important economic decisions to ensure the organization or business is moving forward. In the business world, companies are now looking for something to be understood mainly to contribute on its effective business and management progress. The advanced pace in technology and the increasing level of competition among organization structure drastically impacts the position of an accountant. The information required by a company to make decision to make sure it is moving forward is provided by accounting. Both managerial and financial accounting plays a big role by working along to ensure the growth of the organization is in the right path. However, both managerial and financial accounting has its own purpose of improving an organization or a business. “Earlier financial accounting experiments typically sought to determine whether specific accounting policy choices would affect investors’ decisions.” (Pg778-experimental research) (122words) Role of Financial Accounting Every organization or business should be able to know their monetary progress or else they would never be able to evaluate if the business is profitable or the other way around. “The purpose of financial accounting is to provide users of financial statements with information that is useful for efficient decision making.”(accounting for intangible-pg102).It prepares the...
Words: 1026 - Pages: 5
...Skills, Responsibilities and Roles of the Management Accountant Today's Management Accountant Skills, Responsibilities and Roles in Today's Global Economy Jennifer Dosch, CMA Metropolitan State University Chapter Goal: To demonstrate the skills necessary for management accountants in today's business environment. To identify and explain the responsibilities and roles for today's management accountant. Learning Objectives Demonstrate the differences between management and financial accounting. Describe important skills needed for today's management accountant. Examine responsibilities of the management accountant. Examine the roles required of today's management accountant. Summarize IMA's Code of Ethics for management accountants. Jennifer.Dosch@metrostate.edu Page 1 Skills, Responsibilities and Roles of the Management Accountant I. Overview of Accounting The two primary accounting roles in an organization are “financial” and “management” accounting. The recording of transactions and preparing financial reports is the financial accounting role. Financial accounting deals with historical results, the recording and reporting of transactions that have occurred. For example, paying cash for salaries expenses incurred or recording the purchase of raw materials. The recording of transactions and preparation of financial statements are currently guided by Generally Accepted Accounting Principles (GAAP). GAAP consists of standards and...
Words: 4967 - Pages: 20
...Administration and Business Management: The Difference Between Degrees by Fred Decker, Demand Media * Bit.ly * Blogger * Delicious * Digg * Instapaper * Posterous * Stumbleupon * Tumblr * Yahoo! Bookmark * x Degrees in business management are designed to instill leadership skills. Related Articles * The Requirements for an Undergraduate Business Administration Degree * Differences Between an MBA & a Bachelor's in Business Administration * The Difference Between a Master's in Public Affairs & a Master's in Public Administration * The Difference Between a Post Graduate Diploma & an MBA Business management and business administration degrees are the passports to positions in the highest levels of most fields. Even in highly technical professions such as engineering or health care, complementing a professional degree or certification with a graduate business degree can be a prerequisite for a promotion. Business management and business administration degrees have many similarities, but there are differences as well. Business Management Degrees Undergraduate and graduate degrees in business management train students to take a leadership role. The core curriculum of most programs will include a grounding in the humanities, as well as specialized coursework in areas such as conflict resolution, critical thinking, personnel development and managing performance. Management degrees focus on the...
Words: 3147 - Pages: 13
...Human Resource Management Overview In 1833, Human Resources started out at factories where individuals were inspectors called Industrial Welfare workers. These inspectors regulated 60-hour workweeks over children and women. In this day, Human Resource Management in organizations is the process of hiring and developing employees so that individuals become more valuable to organizations. HR departments have three major areas that they cover. Transactional work such as payroll, employee benefits, insurance, and retirement plans is the first. Tactical work is HR developing solutions that benefit the employee work groups. Last Strategic work benefits the organization as a whole such as evaluating the organization where it stands, to deciding where the organization wants to be in the future, and ending with developing a plan to reach those goals. Primary Functions There are four basic functions in Human Resource Management; staffing, training and development, motivation, and maintenance. The first being staffing means hiring individuals for needed positions. There are steps to take for staffing which include strategic human resource planning, recruiting, and selection. This involves bringing new people into the business and making sure they are productive additions to the enterprise (Huntley & Kleiner 2005) For example, before I was hired there was one open position for the accounting department at my work. Two of us that were considered for that one position, but both...
Words: 915 - Pages: 4
...Functional areas of business Latasha Edwards University of Phoenix Management 521 Kimberly Roberts February 05, 2015 Functional areas of business An organization can be a church, fraternity, or business. Managers play an essential role in organizations because they oversee others, their work and ensure goals. Most traditional organizations have multiple types of managers for different levels within an organization. These various types of managers are first-line, middle, and top (Robbins & Coulter, 2012). The roles may be different, but each is just as important. Managers are important for three reasons; first, their skills are most needed when pandemonium happen. Second, managers get things done and finally, managers certify employees are productive and loyal to the company (Robbins & Coulter, 2012). There is numerous function in a business and managers have a role in each one. This purpose of this essay is to analyze the role of a manager within the functional areas of business. Functional areas According to the MBA overview module, there are numerous functions within a business. These functions are management, law, human resource management, leadership, accounting, finance, economics, research and statistics, operations management, marketing, and strategic planning (MBA Overview Module, n.d.). Management is overseeing others, so organizations meet their goals. Employees are the most valuable resource that companies have so managers, who use staff...
Words: 841 - Pages: 4
...New Look At Management Accounting Mohammad Talha, King Fahd University of Petroleum & Minerals, Saudi Arabia John B. Raja, Multimedia University, Melaka, Malaysia A. Seetharaman, S P Jain Center of Management, Singapore ABSTRACT This paper presents a comparison of the traditional management accounting with the new approach of management accounting with the use of latest information technology and manufacturing technologies. The information and data of the research were gathered from various sources of secondary data. Many online articles and journals were available through these search engines such as Google, Infoseek, Lycos, Excites and Altavista. These articles were downloaded from Internet Websites including IFAC library, CPA online newsletters, Institute of Management Accountants, CIMA (Chartered Institute of Management Accountants), Technical Bulletin and Institute of Commercial and Financial Accountants. The modern techniques used in Management Accounting are discussed. TQM (Total Quality Management), ABC (Activity Based Costing) and BSC (Balanced score card) are some of the tools that are introduced in management accounting to keep up with the latest technology. This research highlights the emergence of new, more proactive management accounting that increasingly becomes part of the management team with the business process. The future roles and expectations of these accountants in the competitive global economy are discussed. Keywords: Management accounting, Standard...
Words: 8445 - Pages: 34
...Report on an Analytical Review of Management Course: MGT 210 Prepared For KH.ASEF SAFA KABIR Lecturer North South University School of Business Group Name: MaximuM SynergY Course: MGT 210 Instructor: KH. ASEF SAFA KABIR (KSU) Section: 5 School of Business (B.B.A) North South University Dear Sir, We are glad to inform you that we have formed a group of six members and the following there are the names and IDs of our group members. Name: Mahmudul Reza ID: 1420621030 Name: Ahamad Mostofa Montasir ID: 1330348030 Name: Sazid Ahmed ID: 1410066630 Name: Shithi Samad ID: 1410566630 Name: Tanvir Hossain ID: 1320196030 Name: Lutful Kabir Sadi ID: 1220319030 Letter of Transmittal 09 December, 2014 To KH.ASEF SAFA KABIR Lecturer NSU Business School North South University Plot-15; Block-B;Basundhara,Dhaka Subject: Submission of project report on manager of AL-ARAFAH ISLAMI BANK (AIBL) Dear Sir, With due respect, we would like to submit an exclusive Report on Analytical Review of Management. The report deals with whole activities of General Banking in this Bank. We tried our level best to make the report meaningful and informative....
Words: 4716 - Pages: 19
...every page. Save the file as (e.g. 1123456BS1234). IMPORTANT: Save this file as a PDF, other formats WILL NOT BE ACCEPTED. Cardiff Business School COURSEWORK COVER SHEET 2014/2015 Section 1 (to be completed by the student) Student Name: Oliver Conroy Student Number: C1218229 Module Code: BS3517 Module Title: Management Accounting & Control Coursework Title: Budgeting Essay Submission date: (before 4pm on…) 17.03.2015 Date document last saved/printed: Section 2 ( To be completed by the Lecturer) COMMENTS: --- 09.03.2015 (Updated automatically) Lecturer: Nina Sharma MARK AWARDED: Number of words: 1976 Created by: sbsjj15 Document last opened: 09/03/2015 14:22:03 Version 2.3 Oliver Conroy C1218229 Management Accounting & Control BS3517 i.) INTRODUCTION The apparent flaws and inaccuracies in the traditional budgeting process have caused many scholars to openly question the need and validity of this stalwart of modern day management accounting. Hope and Fraser (2003) spearheaded the ‘Beyond Budgeting’ approach, challenging the conventional format of budgets and arguing that they should be abolished, removing the rigid shackles imposed on businesses ...
Words: 2744 - Pages: 11
...1. Define the term e-Government. Identify three forms of e-Government and give an example of each. e-Government is the use of information and communications technology to simplify the sharing of information, speed formerly paper-based processes, and improve the relationship between citizens and government. 2. Identify and briefly describe three limitations that complicate the use of handheld devices used for m-commerce. 3. What role do digital certificates and certificate authorities play in e-commerce? Digital Certificates are issued by Certification Authorities (CA). Like a central trusted body is used to issue driving licenses or passports, a CA fulfil the role of the Trusted Third Party by accepting Certificate applications from entities, authenticating applications, issuing Certificates and maintaining status information about the Certificates issued. 4. What is mobile commerce? How big is the mobile commerce market in the U.S.? Mobile commerce (m-commerce) relies on the use of mobile, wireless devices, such as cell phones and smartphones, to place orders and conduct business. 5. Briefly explain the differences among smart, credit, charge, and debit cards. A credit card, such as Visa or MasterCard, has a preset spending limit based on the user’s credit history, and each month the user can pay all or part of the amount owed. A charge card, such as American Express, carries no preset spending limit, and the entire amount charged to the card is due at the end of the...
Words: 652 - Pages: 3
...Manufacturing Overhead Name Institution Manufacturing Overhead Manufacturing overhead costs play a vital role in determining final cost of the product. Manufacturing overhead represents all the costs that the company incurs indirectly and not related to the cost of direct labor, direct materials or direct cost of machines (Donald, 2010). In short, companies are not able to trace these costs to individual items during the manufacturing process. Examples of overhead costs include factory supplies, costs emanating from compliance with local, state and federal regulations as well as certain type of equipment and machinery costs (Donald, 2010). Other manufacturing overhead costs include quality assurance costs, property insurance premiums and clean-up costs. Companies may assign to each process a predefined share of manufacturing overhead costs. Companies develop predetermined overhead costs because they do not have the capability to accurate determine the cost of these miscellaneous products. By adding the manufacturing overhead cost to direct labor, companies are able to arrive at the Conversion Cost, which is crucial in informing management on the cost of converting raw materials into the final product that will be destined for the market (Donald, 2010). Furthermore, the Generally Accepted Accounting Principles (GAAP) demands that the company factors in direct materials costs, direct labor as well as factory or manufacturing overhead...
Words: 905 - Pages: 4
...THE EFFECT OF BUDGETARY CONTROL ON EFFCTIVENESS OF NON GOVERNMENTAL ORGANISATIONS IN KENYA REBECCAH NYAMBURA KIMANI A RESEARCH PROJECT SUBMITTED IN PARTIAL FULFILLMENT OF THE REQUIREMENTS FOR THE AWARD OF THE DEGREE OF MASTER OF SCIENCE FINANCE, SCHOOL OF BUSINESS, UNIVERSITY OF NAIROBI OCTOBER 2014 DECLARATION I declare that this project is my original work and has not been submitted for examination in any other university. Signed………………………………………Date…………………………………… REBECCAH NYAMBURA D63/71147/2014 This project has been submitted for examination with my approval as the university supervisor Signed………………………………………Date…………………………………… MR. MIRIE MWANGI Lecturer, Department of Finance and Accounting School of Business University of Nairobi ACKNOWLEDGEMENT I am deeply indebted to all those who in their own way contributed to successful completion of this study. First and foremost I thank the almighty God, to whom all knowledge, wisdom and power belong for sustaining me in good health, sound judgment and strength to move on and complete my master’s studies. Special appreciation goes to my supervisor for his dedication, guidance, valuable suggestion and ideas throughout the course of this project. Without his enormous support this study would not have been successful. Thanks to my family who always inspired me in every step to accomplish this study. I am eternally grateful for your love, encouragement and support in all my endeavors. DEDICATION I dedicate this project to my...
Words: 12812 - Pages: 52
