Review of Literature on Management Accounting

In: Business and Management

Submitted By joji6116
Words 839
Pages 4
REVIEW OF LITERATURE
M.Y KHAN AND P.K.JAIN says in their book ‘Management Accounting’ that, profitability is a measure of efficiency and search for it provides an incentive to achieve efficiency. Profitability also indicate public acceptance of the product and shown that the firm can produce completely. Moreover, profit provides the money for repaying the debt incurred to finance the project and recourses for internal financing of expansion.
Dr. E.A LIZZY in her book of ‘management accounting explains that, the analysis of financial statement with the help of ratios may be termed as ratio analysis. It implies the process of computing, determining and presenting the relationship of items and groups of items of financial statements. Ratio analysis helps comparisons and interpretations of these ratios and there use for future projection.
MEIGS.W.B in his book ‘The basic for business decisions’ (1972) says that, Ratio analysis is a widely used tool of financial analysis, it is a systematic use of ratio to interpret the financial statements, so that the strength and weakness of a firm as well as its historical performance and current financial condition can be determined.
J.BATTY defined accounting ratio in his book ‘Management Accountancy’ (1975) as, “the term accounting ratio is used to describe significant relationships which exist between figures shown in balance sheet, in a profit and loss account, in a budgetary control system or in any other part of the accounting organization.”

HARRY GUTHMANN in is book ‘corporate financial analysis’ explains that, “the first and most important function of financial statement is of course to serve those who control and direct the business to the end securing the profits and maintaining a sound financial condition, questions as to how efficiently the capital of the business is being utilized, how well credit standards are…...

Similar Documents

Management Information Technology Literature Review

...Running head: ETHICAL BEHAVIOR AND THE WORKPLACE How Businesses Are Using Technology to Enforce Ethical Behavior in the Workplace: Jonathan R. Jordan Liberty University Abstract Many companies and organizations are finding enviable growth and expansion only by delving into new markets. To accomplish this, companies must seize the advantage of utilizing the latest and most effective technology. With the rapid advancement of technology, the importance of business ethics has increased immensely. Ethics has always been an important subject as long as companies and organizations have been conducting business. However, this rapid technological advancement has and will have a tremendous impact on business ethics. This literature review will explain how businesses are using technology to enforce ethics in the workplace. It will discuss how the progression of technology is forcing businesses and organizations to approach their operations from an ethical perspective. It will explain the importance of business ethics, and will provide research concerning what has been accomplished to utilize technology in enforcing business ethics. Ethics The concept of ethics involves deciding what kind of work life businesses and companies should seek for their employees (Audi, 2009). Morality, honesty, and integrity, are ethical concerns that are seemingly deficient in modern society. However, the concept of ethics reaches further into the fiber of corporations and...

Words: 6959 - Pages: 28

Management Concepts Literature Review

...Griffiths University | Literature Review and Report | IBA111 Management Concepts | | | Geoffrey Lee (S2832807) | 05-Feb-12 | Lecturer: Alistair Hodgson According to Schermerhorn (2011, p. 364), Google Australia is one of the best places to work in Australia matching the performance of its US parent company. It uses a well-balanced strategy of extrinsic and intrinsic rewards and these have kept its employees highly motivated and continue to exert their best efforts for the company. Extrinsic rewards at Google Australia include unlimited sick leave, generous health insurance, flexible working hours, and reimbursement of up to $6000 per year for educational expenses. In addition, staff can also receive small bonus rewards on a day-to-day basis. Intrinsic rewards mostly depend on the individual, but such things as getting to work with creators of Google products such as Google Earth, Gmail, and Google News can bring a sense of satisfaction to the job. Google’s intention to create a sense of fun at work and to create a culture of information sharing and collaboration can be identified by its office environment such as an informal dress code, abundant leisure activities and free food at the staff cafeterias. With these small rewards, Google employees feel a sense of belonging to the company and feel that they are creating and contributing to something bigger than themselves. Gone are the days where companies rely solely on the loyalty and lifelong devotion...

Words: 1826 - Pages: 8

Review of Literature on Management Accounting

...REVIEW OF LITERATURE M.Y KHAN AND P.K.JAIN says in their book ‘Management Accounting’ that, profitability is a measure of efficiency and search for it provides an incentive to achieve efficiency. Profitability also indicate public acceptance of the product and shown that the firm can produce completely. Moreover, profit provides the money for repaying the debt incurred to finance the project and recourses for internal financing of expansion. Dr. E.A LIZZY in her book of ‘management accounting explains that, the analysis of financial statement with the help of ratios may be termed as ratio analysis. It implies the process of computing, determining and presenting the relationship of items and groups of items of financial statements. Ratio analysis helps comparisons and interpretations of these ratios and there use for future projection. MEIGS.W.B in his book ‘The basic for business decisions’ (1972) says that, Ratio analysis is a widely used tool of financial analysis, it is a systematic use of ratio to interpret the financial statements, so that the strength and weakness of a firm as well as its historical performance and current financial condition can be determined. J.BATTY defined accounting ratio in his book ‘Management Accountancy’ (1975) as, “the term accounting ratio is used to describe significant relationships which exist between figures shown in balance sheet, in a profit and loss account, in a budgetary control system or in any other part of the accounting...

Words: 839 - Pages: 4

Literature Review

...Assignment 2: Annotated Outline and Reference List for Literature Review by John Doe EDD 9200 CRN 24329 Trends and Issues: Society, the Individual, and the Professions Nova Southeastern University November 08, 2010 Topic: The Increase of Obesity Amongst Teens has Damaging Effects I. Introduction A. Establish the understanding of the topic 1. What is obesity? Cite definitions and characteristics of obesity ( ). 2. Define teen and identify normal weight criteria ( ). 3. Causes of Obesity a. Genetics 1. Predisposition from heredity factors such as Bardet-Biedel syndrome and Prader-Willi syndrome ( ) 2. Metabolism Disorders (Keast, Nicklas, & O'Neil, 2010). b. Diseases and Drugs 1. Cushing disease 2. Polycystic Ovary syndrome 3. Steroids 4. Antidepressant c. Lifestyle and eating habits; energy imbalance 1. Increased consumption of fast food (Keast, Nicklas, & O'Neil, 2010). 2. Increased time with media (T.V., computer games) ( ) 3. Increased time communicating on phones ( ) d. Social opinions of overweight individuals 1. Cultures identify overweight people as lazy, stupid, and slow. 2. Effects of negative attitudes expressed towards obese teens. e. Increased emotional disorders (i.e. anxiety, depression) ( ) B. Additional factors affecting obesity in teenagers 1. Low self-perception and self-esteem 2. Social isolation 3. Reduction in physical activity C. Health consequences of...

Words: 1042 - Pages: 5

Literature Review

...Literature Review Internet usage is increasing from time to time in any parts of the world including Malaysia. Malaysia is one of the developing country with enormous potential for online shopping to growth as almost all Malaysian houses are now equipped with high-speed internet access connection at a lower price. As the internet access is getting more advance, it change our lifestyle. From brick-and-mortar trading, the new era now is all being done via online where shopping at a shopping mall can be done with few clicks on the internet. Big company from online business added many attractive features for online shoppers to decide what to shop for. Features are such as price comparison between brand, products photos and reviews. Online shopping from websites and social media is growing day by day in anywhere, Malaysia is one of the many that is keep growing as the market is slowly accepting online shopping. People from Malaysia purchase their apparel via online from websites and social media such as www.peepboutique.com, www.tanksfor5.com and Facebook. From the websites and social media, people can view the products, products contents, price comparison, user reviews from those who have bought. In Malaysia, the conventional apparel stores are everywhere in the shopping malls, complexes, and personal shop lots but yet the business are doing well and still very competitive. Conventional apparel stores are always full of people from Monday to Sunday with lot of choices...

Words: 917 - Pages: 4

Literature Review

... leadership behaviours, researchers also focused on how leaders actually make decisions, and the influence of decision-making styles on leader effectiveness and employee reactions. Three types of decision-making styles were studied. In authoritarian decision making, leaders make the decision alone without necessarily involving employees in the decision-making process. When leaders use democratic decision making, employees participate in the making of the decision. Finally, leaders using laissez-faire decision making leave employees alone to make the decision; the leader provides minimum guidance and involvement in the decision. A review of the literature shows that when leaders use more democratic decision-making styles, employees tend to be more satisfied, but the effects on decision quality or employee productivity are weaker. Finally, the effectiveness of each style seems to depend on who is using it. There are examples of effective leaders using both authoritarian and democratic styles. For example, Larry Page and Sergey Brin at Google are known for their democratic decision-making styles. At Hyundai USA, high-level managers use authoritarian decision-making styles, and the company is performing well.  The track record of the laissez-faire decision-making style is more problematic. Research shows that this style is negatively related to employee satisfaction with leaders and leader effectiveness.  Laissez-faire leaders create high levels of ambiguity about job......

Words: 1426 - Pages: 6

Literature Review on Organizational Issues Management Essay

...Introduction The present paper discusses the actual needs for developing the kinky boots company, here the innovations and ideas of the 4th generation Steve Pateman’s Kinky Boots story based on the WJ Brooks of Earls Barton’s family business. The kinky boots company previously known as W J Brooks and Co is a shoemaking firm in the village of Earls Barton, near Northampton. This company has been making shoes for over 100 years. It was founded in the year 1889 with 80 people but in the meanwhile due to economic (cheap) foreign imports, and the strong pound value, sales have been collapsed and the company lost money. They used to pay the money but had no work for the employees (David Gritten, 2005). In the year 1998 the work force was almost halved and Steve felt heavy responsibility for the remaining 30 people and so he has taken his drastic steps towards his family business. The desperate and reluctant owner inspired by an outrageous drag queen to change his product to fetish footwear for transvestites. The present paper mainly discuss about the analysis made on which strategy will yield better profits for the kinky boots company. Literature review: Organizational issues: For a new emerging organization which is of exposed firm, fluid units retrain comparatively employees and few managers as well as non-central functions contracted exterior to the organization. Such a rising organizations will be definitely focus on improving their significant competencies as well as...

Words: 4273 - Pages: 18

Literature Review

...Literature Review According to Helfat, et al. (2006), women in top management positions were nearly non-existent from the 1970s to the early 1990s. Information from Powell (1999) and Helfat, et al. (2006) shows a dramatic increase of women in business leadership roles (see Table 1). Table 1 Women in Management Positions As of 2005 women accounted for 46.5% of the United States workforce, but for less than 8% of its top manager positions although at Fortune 500 companies the figure was a bit higher (The Economist, 2005). Female managers’ earnings now average 72% of their male colleagues’ (Emory, 2008). Often cited as the reason for why women are not represented in top management positions is the “glass ceiling.” The glass ceiling effect is defined as an unofficial barrier to opportunities within an organization or company preventing a protected classes of workers, particularly women, from advancing to higher positions (Glass Cliff, 2008; Olin, et al., 2000). According to Helfat et al. (2006), the percentage of women in executive positions is gender specific. For example, industries with the highest percentage of women executives include publishing and printing (15.8%), transportation equipment (15.7%), securities (14.8%), healthcare (14.6%), temporary help (14.5%), airlines (13.8%), and food Services (13.6%). In contrast, industries with women holding the least amount of executive positions include semiconductors (1.3%), energy (2.8%), waste management (3.6%),......

Words: 342 - Pages: 2

Literature Review on Hostel Management System

...CHAPTER ONE 1.1 Introduction: This Hostel Management System is developed in favor of the hostel management team which helps them to save the records of the students about their rooms and other things. It helps them from the manual work from which it is very difficult to find the record of the students and the information about those ones who had left the hostel years before. This solution is developed on the plight of the hostel management team, through this they cannot require so efficient person to handle and manage the affairs of the students in the hostel, all you need to do is to login as administrator and you can see the information of all the students who have obtained and registered their hostel form, click verify to ascertain their eligibility and allocate them to the available hostel. Identification of the problems of the existing hostel management leads to the development of computerized solution that will be compatible to the existing hostel management with the solution which is more users friendly and more GUI oriented. We can improve the efficiency of the hostel management, thus overcome the drawbacks of the existing management Visual Basic6.0 is used as the front end tool and Oracle is used as a backend tool. Visual Basic is one of the driven programming languages. The application wizards, menu editor and data reports etc is very much useful for creating very good professional software. 1.2 AIMS AND OBJECTIVES AIMS o The aim of...

Words: 597 - Pages: 3

Review of Management Accounting

... organisation. That’s it! Well of course there’s more to it than that. The organisation you choose should be a real one. You are not required to investigate and report on the organisation’s actual management accounting system (even if you can find out). Your presentation should have a number of stages and these will determine the work you have to do to prepare. 1 Background to the company – its products, processes, competitors, policies, but most of all its information needs based on the above - showing good reading of appropriate sources (a needs analysis if you like) 2 Review of management accounting – what is it, what needs does it fulfil, what are its key techniques (the things you have been studying all year). 3 The key techniques and methods that you would recommend to the company based on (1), and by definition the techniques you have decided not to recommend - and of course the justification for your choice(s). This should include some examples of decisions that could result from the new information. 4 The strengths and weaknesses of your analysis – for example the additional information you would have liked in order to improve your analysis. (actually this is quite a good structure for many of the analyses that you might do on the course) Marking of your work Assessment 2 – group work – assessment scheme * A clear, brief and well structured background to the organisation showing good reading of appropriate sources. * A clear vision of what...

Words: 666 - Pages: 3

Change Management - a Literature Review

...Literature Review Introduction Through the inter-connection between change management, knowledge management and people management, the author believes you can look at, assess, and analyse organisational readiness and responsiveness to change. This will done through the narrative cyclical approach (FIGURE XX). All of this works together to answer the research question of, “Is there a framework/s that can be used to help organisations increase organisational readiness and responsiveness to change”. Organisational readiness and organisational responsiveness are addressed throughout this literature review. The determinants and impediments of change in each branch of change management have been considered and addressed. Some elements fall outside the scope of the literature review and research. The literature review is structured in such a way that echoes this integration as illustrated in the following diagram (Figure XX). Figure XX: Areas within and outside the research boundaries leading to organisational responsiveness to change. Figure XX: Areas within and outside the research boundaries leading to organisational responsiveness to change. People Management Leadership Organisational Context. Culture. Organisational Learning. Knowledge Management. Change Management. Change Management Change Management is neither an art nor a science; it is an individual process relying solely on the organisation, individuals within the organisation...

Words: 7145 - Pages: 29

Literature Review of Talent Management

...Literature Review of Talent Differentiation Xiayuyan Zhu N9122389 The role that human resource management playing in the corporate business world is becoming more and more seriously nowadays and there is a positive relationship between HRM and organizational outcomes can not be ignored, theories like performance appraisal, empowerment and motivation have been proved useful and effective for improving the performance of the company(Kaifeng, J., Lepak, D.P., Jia, J., &Bear, J. C., 2012). Based on all those theories of HRM, it is necessary that the theories that mentioned has to related to the one factor, human capital. This essay will discuss the concept of talent differentiation in the organization and how does it improve the human capital and other programs which are related to the organizational performance. In order to discuss the relationship between human capital and organizational performance, the first thing is to define the concept of talent/workforce differentiation. Brain, Mark and Dick(2009) argued that plenty of organizations have made the same inappropriate decision which lead to cost overmuch amount of money and time about the employees with low performance in nonstrategic roles and at the same time, those employees with higher performance and more contributions could not get enough resources, chances of development and reward. Lesley Uren(2011) also discussed that one of the intractable human resource management challenges for companies in nowadays are...

Words: 1749 - Pages: 7

Literature Review

...Abstract This research will display a review of the significant literature surrounding stakeholder theory to enable a perceptive of the connection between hospitality industry & its stakeholders. After introducing the stakeholder, a detailed & diverse.definition of the hospitality industry & tourism will be discussed. Following this, why it is necessary for firms to manage its stakeholders will be discussed. After that we will discuss the stakeholder relationship management & the stakeholder theories & how these theories are applied in the hospitality industry. After discussing about the identification of the key stakeholders, we will proceed towards our conclusion. INTRODUCTION According to Mitchell, Agle, & Wood, primary stakeholders are those stakeholders who invest some kind of capital or anything of value in a firm or an organization & are those who sand any type of risk as an effect to their investment. These are those stakeholders who if don’t contribute their input, it will be very difficult for the firm to survive. Primary stakeholders consist of customers, employees, the natural environment, community residents, capital suppliers (shareholders) & other resource suppliers. Basically the groups of primary stakeholders consist of the employees of the firm, the shareholders of the firm, the investors of the firm, the customers & the suppliers of the firm. These all are what is defined as public stakeholder groups. These groups are those who are the...

Words: 2022 - Pages: 9

Exam Review for Management Accounting

...Review Problems, Chapter 2 Inventory Equation: Beginning Inventory + Additions = Withdrawals + Ending Inventory 1. The records of Custom Choppers, Inc. for September 2014 shows the following information: Sales | $820,000 | Selling and administrative expenses | 140,000 | Direct materials purchases | 176,000 | Direct labor | 200,000 | Factory overhead | 270,000 | Direct materials, September 1 | 24,000 | Work in process, September 1 | 50,000 | Finished goods, September 1 | 46,000 | Direct materials, September 30 | 28,000 | Work in process, September 30 | 56,000 | Finished goods, September 30 | 38,000 | The net income for the month of September is:$3 | | | | a. $644,000 b. $ 36,000 c. $636,000 d. $180,000 | | | | | | | | | | | | | | 2. The following information for the Sutton Glass Company has been provided: Cost of goods manufactured | $100,000 | Work in process: | | Beginning | 15,000 | Ending | 20,000 | Direct labor | 30,000 | Direct materials used | ? | Factory overhead | 45,000 | What is the amount of direct materials used? a. | $25,000 | b. | $30,000 | c. | $35,000 | d. | $100,000 | Inventory balances for the Jameson Company in October 2014 are as follows: | October 1, 2014 | October 31, 2014 | Raw materials | $ 27,000 | $21,000 | Work in process | 48,000 | 37,200 | Finished goods | 108,000 | 90,000 | During October, purchases of direct materials...

Words: 649 - Pages: 3

Literature Review

...A Review On The Use of Mobile Devices In Teaching and Learning of English Abstract The purpose of this study is to present a review of modern mobile phone as an educational environment. The modern world has opened a new era with its opportunities. Modern mobile phone has become one of these opportunities in terms of its being a basic element in daily life. After enormous advances in mobile phone technology, the field of education has considered it necessary to bring modern mobiles into the teaching and learning environment. With the advent of smartphones, students and educators have both overcome the hardships in the education system and these devices make learning possible to occur outside the traditional classroom environment at anytime and in anyplace. Keywords: mobile phones, learning and teaching English, technology Introduction Within educational research, smartphones, a popular inevitable device for almost everyone, are gradually emerging as a new educational environment. This paper aims to review various studies on mobiles in terms of education. Learning based on date back a long time. From the seventies on, technological advances have stimulated and promoted many modern progressive learning means. The advances in technology have been put into use to prevent classroom barriers in the process of learning and to keep learning materials in pace with the knowledge level of the students. Especially, portable devices that include smart teaching...

Words: 3522 - Pages: 15