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Management Accounting

In: Business and Management

Submitted By Shujiao
Words 2784
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As everyone knows, Reel Tape Inc. was a great company in the 1960s. When cassettes came in, Reel Tape Inc. just switched its product line but not its attitudes. However, its competitors had changed the way to do business. These competitors set up strategy and management accounting system to improve their quality, cost and time. They had high quality, delivered products on time, and had low price. These competitors took market share from Reel Tape Inc. One of the reasons that led to Reel Tape Inc. lost its market share was the lack of a good management-accounting system. (Jan Bell, Shahid Ansari, Thomsa Klammer, and Carol Lawrence, 1997)
What is management accounting
Management accounting is a system of measuring and providing operational and financial information that guides managerial action, motivates behaviors, and supports and creates the cultural values necessary to achieve an organization’s strategic objectives. (Jan Bell, Shahid Ansari, Thomsa Klammer, and Carol Lawrence, 1997) A good management-accounting system can help firms to produce low cost products, maintain quality and deliver on time. A good management accounting information is technical, behavioral and cultural. First, technology can provide relevant information for strategic decisions. Management accountants should obtain information what they want through companies’ information system. This information should be timely and accurate. It helps management accountants analyze companies’ financial situation and then make decisions. Second, behavioral can encourage actions that are consistent with an organization’s strategic objectives. The decisions that management accountants made can help to achieve companies’ objectives. The accountants in strategy and management accounting department set up procedures for management accounting. These procedures should be thought reasonable and accepted by

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