Management accounting is an important factor that helps organizations to map their future directions through providing managers with necessary information for the establishment of strategies that ensures all inputs, processes, and outputs are in line with the organizational goals. Through the information provided by management accounting, managers access information that is critical in formulating policy, making comparison between alternative situations, and evaluate and examine performance. While management accounting has similar

The clear line drawn between accounting and managing, for example, illustrates that traditional accounting systems are of little use to the managers, and that they should have their own accounting systems to meet their needs. Another way in which Fayol influenced managerial accounting systems is in the way he viewed organizational structure. Some of his key structural principles, such as centralization and scalar chain, reinforce the value of management accounting

Management Accounting The IMA statement of ethical professional practice begins with the overarching principles of honesty, fairness, objectivity and responsibility. The statement consists of four standards, these being competence, confidentiality, integrity and credibility. Lastly, the statement provides guidance for the resolution of ethical conflict. Three steps are to contact a superior, then an IMA ethics counselor and then finally a lawyer. There is evidence in the Enron case that Enron's executives violated

The control of the financial resources is pivotal in any occupation as it serves a multitude of purposes. For instance, an extensive budgetary process helps set realistic and attainable objectives, while also considering resource constraints (Shim and Siegel, 2005, p.9). Additionally, the financial planning component is a central element in the final success of any business endeavor, and one could wonder how it is possible to reach business success

Management Accounting Company Overview Classic Pen Company is an organization specializing in the production of pens, the Classic Pen has been enjoying the low costs for the production of BLACK pens and BLUE pen, and the company has enjoyed the profit margin of 20% of sales. Increase in sales makes sales manager to decide to expand business by introducing new product line, which could offer at a 3% premium. Thus, management

The mistake occurred when enthusiasts tried to use those data for other purposes such as 'strategic product decisions.' The average cost of production never could, and never will, be relevant for those classes of decisions where only the change in total costs and revenues are relevant. That is, the rough, average post calculations provided a guide for pricing unique one-off products or services, but were of no use for