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 systems. The systems are needed to support the chain of command, and the top manager at the center of the system. The principle of unity of direction probably contributed the most to management accounting systems because it ties objectives together with a single manager. This guided management accounting systems towards meeting specific singular objectives, and framed the chain of tasks around goals.

Behavioral theories also helped to have an influence of the development of management accounting systems. Human relations is a…...

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Works Cited

Hoque, Zahirul. (2006) Methodological Issues in Accounting Research. Spiramus Press, London.

No author. (no date). Session 5: Financial and Managerial Accounting Transportation Operations Management. Retrieved August 16, 2008 at http://cbdd.wsu.edu/kewlcontent/cdoutput/TOM505/page11.htm

No author. (2007). Frederick Taylor and Scientific Management. NetMBA. Retrieved August 16, 2008 at  http://www.netmba.com/mgmt/scientific/ 

No author. (no date). Administrative Theory (Fayol). Babson College. Retrieved August 16, 2008 at  http://faculty.babson.edu/krollag/org_site/encyclop/admin_theory.html

Management accounting provides data that can help a small business craft a strategy that can be used to meet their financial and organizational objectives by assisting in the decision making process. Examples of types of issues that a management accountant is equipped to analyze might include items such as product costing, relevant costing, capital budgeting, and operational or strategic planning. Furthermore, a management accounting can design, implement, and manage internal metrics that sustain timely decision making, planning, and control over the business's most critical operations. Being able to determine financially which business activities are profitable and which could be refined is a critical part of any small business strategy and often can represent the difference between success and failure.
The field of management accounting, or managerial accounting, is rapidly evolving with new technology and analytical tools. The modern business environment is becoming increasingly competitive and sophisticated their strategic positioning. For example,…...

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Works Cited

Endencih, C., Brandau, M. & Hoffjan, A., 2011. Two Decades of Research on Comparative Management Accounting -- Achievements and Future Directions. Australian Accounting Review, 21(4), pp. 365-382.

Gorchel, L., 2010. The Product Manager's Handbook. 3rd ed. New York: McGraw-Hill.

Ittner, C. & Larcker, D., 2001. Assessing empirical research in managerialaccounting: a value-based management perspective. Journal of Accounting and Economics, 32(1-3), pp. 349-410.

Michalek, J., Feinberg, F. & Papalambros, P., 2005. Linking Marketing and Engineering Product Design Decisions. The Journal of Product Innovation Management, 22(42-62), pp. 42-62.

This is consistent with contingency theory -- not only must the managerial system be broadly appropriate for the firm type, but is must also be fine-tuned to meet the specific structural and environmental needs of the firm. The subsystems must be congruent with the firm's objectives, and firms of the same type do not necessarily have the same objectives (ade & Schneberger, 2006).
A firm can, if it chooses, use a managerial system that broadly fits its needs, such that the same system is used in a number of similar organizations. However, for a firm to be most effective, it should tailor that broad system to meet its specific circumstances. Management cannot assume that a managerial system used by a similar organization will work for them, because not too firms will have the exact same structure, environment, and objectives. Because management accounting is so focused on the provision of information…...

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Works Cited:

Hayes, David C. (1977). The Contingency Theory of Management Accounting. The Accounting Review. Vol. LII No. 1, January 1977 pp.22-39

Chennall, Robert H. & Morris, Deighan (1986). The Impact of Structure, Environment, and Interdependence on the Perceived Usefulness of Management Accounting Systems. The Accounting Review. Vol. 61, No. 1, January 1986, pp.16-35.

Wade, Mike & Schneberger, Scott. (2006). Contingency Theory. York University. Retrieved July 17, 2009 from http://www.istheory.yorku.ca/contingencytheory.htm

This will help mananagement to understand how sensitive the organization is to changes in the sales mix. Such information is helpful when determining future strategy and spending decisions.
The sensitivity analysis can also help is determining the ideal degree of operating leverage. In general, the greater the leverage the greater the sensitivity of the organization to change. Understanding the effect that operating leverage has on the business is one of the key benefits to CVP analysis.

One of the potential problems with CVP analysis is that it implies future performance based on either past trends or on assumptions. The market may not react as expected changes in the marketing mix, price or other variables. The sensitivity analysis can mitigate some of this effect, but the risk still exists that the market will not react in the manner that was modelled using CVP.

Another potential problem is that CVP analysis is mostly useful…...

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Works Cited

Williams, Jan R.; Haka, Susan B.; Bettner, Mark S. & Meigs, Robert F. (2002). Financial and Managerial Accounting: The Basis for Business Decisions. McGraw-Hill, New York, 2002.

Horngren, Datar & Foster. (2003). Cost Accounting. Prentice-Hall, Upper Saddle River, NJ, 2003.

Williamson, Duncan. (2000). Cost Volume Profit Analysis: Its Assumptions and their Pitfalls. Duncan Williamson. Retrieved February 19, 2009 at  http://business.fortunecity.com/discount/29/cvpass.htm

In addition, service measures like customer satisfaction are also gauged. Production measures -- especially those related to efficiency and airplane load factors -- are also critical in decision-making at the organization. But the PSP philosophy illustrates clearly that FedEx recognizes the link between non-financial measures and financial outcomes. Thus, the company explicitly measures performance in non-financial terms, specifically because it believes that its financial performance will benefit from focusing on non-financial measures.
Overall performance evaluation approaches should include a mix of non-financial and financial measures. This perspective recognizes that financial objectives are not achieved in a vacuum -- that they require work on a number of inputs in order to achieve financial objectives. The use of performance measures of all types will help to orient the activities of the organization towards actions that will have a positive impact on the company's ability to achieve its financial objectives. Good companies recognize…...

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Works Cited:

BSI. (2011). Balanced scorecard basics. Balanced Scorecard Institute. Retrieved December 13, 2011 from  http://www.balancedscorecard.org/BSCResources/AbouttheBalancedScorecard/tabid/55/Default.aspx 

Gjerde, K. & Hughes, S. (2007). Tracking performance: When less is more. Management Accounting Quarterly. Retrieved December 13, 2011 from  http://findarticles.com/p/articles/mi_m0OOL/is_1_9/ai_n31141879/?tag=co%20ntent;col1 

Mudde, P. & Sopariwala, P. (2008). Examining Southwest Airlines' strategic execution: A strategic variance analysis. Management Accounting Quarterly. Retrieved December 13, 2011 from  http://findarticles.com/p/articles/mi_m0OOL/is_4_9/ai_n31151644/pg_2/?tag=content;col1

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 some of the elements of the IMA ethical statement. Now, it is worth remembering that the fraud was related to the financial accounting statements, and there is less strict legal guidance with respect to managerial accounting, but the IMA statement still pertains to the accounting function. Clearly, Enron did not adhere to the overarching principles of honesty, fairness, objectivity and responsibility. It is felt that they were probably deliberately dishonest and it has been proven that they hid the true…...

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Works Cited:

IMA. (2013). IMA statement of ethical professional practice. IMA. Retrieved October 27, 2013 from  http://www.imanet.org/pdfs/statement%20of%20Ethics_web.pdf

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 without focusing on financial constraints. It is in fact rather difficult. While it may be doable for companies in the public sector or for not-for-profit institutions, to a for-profit company, for which "profitability is the primary goal of the firm, […] financial systems are inevitably the primary mechanism through which top management seeks to control performance" (Grant, 2005, p.214).
From the lessons of Body Glove however, one can see that business triumph is indeed possible with a reduced emphasis on budget…...

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References:

Cohen, S., Eimicke, W., Heikkila, T., 2008, the Effective Public Manager: Achieving Success in a Changing Government, 4th Edition, John Wiley and Sons, ISBN 0470282444

Grant, R.M., 2005, Contemporary Strategy Analysis, 5th Edition, Wiley-Blackwell, ISBN 1405119985

Premchand, a., 1983, Government Budgeting and Expenditure Controls: Theory and Practice, International Monetary Fund, ISBN 0939934256

Shim, J.K., Siegel, J.G., 2005, Budgeting Basis and Beyond, 2nd Edition, John Wiley and Sons, ISBN 0471725021

Management Acocunting
Purpose of Management Accounting

An organization is typically a system consisting of many departments that work as a system. The overall performance of an organization is based on the individual contributions made by the varied departments therein. One of such departments is the accountants and accounting management department. The purpose of management accountant is to support decision making by collecting, processing, and communicating information that helps management plan, control, and evaluate business processes and company strategies. These types of roles and responsibilities have not been accorded to the self-directed accountant in most cases. This is because many of these responsibilities have been left to individual people in the company.

Many organizations do not have a typical docket of management accounting. Instead, this docket has many individuals who are accorded the same roles. Financial reporting is an important docket within an organization. This role is executed at the beginning of the…...

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References

Bendrey, M., Hussey, R., & West, C. (2003). Essentials of management accounting in business.

London: Continuum

Chapman, C.S., Hopwood, A.G., & Shields, M.D. (2009). Handbook of management accounting research: V. 3. Amsterdam: Elsevier

Needles, B.E., Powers, M., & Crosson, S.V. (2010). Financial and managerial accounting.

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 introduced ED pens, which could be sold at 3% premium despite its complicated production requirements. PUPLE was also introduced last year because it is has been viewed to command 10% premium selling price.

Since the introduction of new products, the financial statement of Classic Pen has been disappointing and there is a need to address the problem to make the company to enjoy increase in profitability.

:Problem Identification

Production of new ed Pen and Purple Pen has made Classic Pen to incur higher…...

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References

Akyol, D.E. Tuncel, G. & Bayhan, G.M (2005).A comparative analysis of traditional costing and activity-based costing .World Academy of Science, Engineering and Technology . 3: 44-47.

Cooper, R. & Kaplan, R.S. (1988). Measure Costs Right: Make the Right Decisions. Harvard Business Review. 66 (5): 96-103.

Harvard Business School (1998).Classic Pen Company: Developing an ABC Model.

Luehlfin, M.S & Mason, W.H. (2010) . Activity-Based Costing. Encyclopedia of Management. Cengage.UK.

Management Accounting in a Growing Business
One of the most important factors towards the success, productivity, and growth of a business is management accounting whose significance has attracted considerable attention in the recent past because of new trends and recent developments. Actually, management accounting is considered as a business process that creates energy, which drives a company's results and success. The significance of management accounting in today's business environment is also attributable to the fact that business organizations are increasingly focusing on value creation instead of valuation. In light of these factors, a growing business needs to establish suitable management accounting processes based on understanding the significance of investing in management accounting systems for future organizational growth and profitability.

Management Accounting v. Financial Accounting

Management accounting and financial accounting are terms that have widely been used interchangeably despite the difference between the two concepts. While management accounting is a process that generates energy…...

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References

Banks, L n.d., How Do I Create an Operating Budget, Small Business Chron, viewed 5

November 2015,

Clarke, RL 2015, 5 Methods of Classifying Costs -- By Accounting Function, By Management

Function, By Traceability, By Behavior, By Relevance to Decision Making, Online Success, viewed 5 November 2015,

The use of managerial accounting to keep profit margins where they need to be and make sure that individual product offerings are not a net drain on the company is not the only thing that Thai Airlines can and must do to keep a competitive edge and to protect themselves from things like corporate malfeasance and terrorists attacks, but it is certainly a major thing that should be take into account and otherwise dealt with in a timely and complete nature. It will not be easy for Thai Airlines to keep their competitive edge largely because other firms will be doing the exact same calculations and measurements. However, not doing so would be ceding progress and adeptness to their competitors. As such, not doing managerial accounting should be a non-starter for Thai Airlines.
eferences

AccountingExplained.com. (2013, May 12). Managerial Accounting Introduction | Accounting Explained. Accounting Explained | Financial and Managerial Accounting…...

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References

AccountingExplained.com. (2013, May 12). Managerial Accounting Introduction | Accounting Explained. Accounting Explained | Financial and Managerial Accounting Notes. Retrieved May 12, 2013, from  http://accountingexplained.com/managerial/introduction/ 

CEIBS. (2013, May 12). Managerial Accounting for Decision-makers_CEIBS. China Europe International Business School. Retrieved May 12, 2013, from  http://www.ceibs.edu/execed/index/8079.shtml 

CSUN. (2013, May 12). Managerial Accounting. California State University, Northridge. Retrieved May 12, 2013, from  http://www.csun.edu/~hfact004/Managerial.html 

McGraw-Hill. (2013, May 12). The Work of Management and the Need for Managerial Accounting Information. McGraw-Hill. Retrieved May 12, 2013, from  http://highered.mcgraw-hill.com/sites/0073526703/student_view0/ebook/chapter1/chbody1/the_work_of_management_and_the_need_for_managerial_accounting_information.html

The two basics to keep in mind is that managerial accounting should be used early and often and not just internal stakeholders should be heeded and listened to (Tutor2U.net, 2013).
Conclusion

In conclusion, Thai Airlines would benefit greatly from an entrenched and well-managed managerial accounting framework. It should supplement and complement both the financial accounting mechanisms of Thai Airlines as well as general process management, general product management, marketing, other accounting matters and general business decision making for Thai Airlines. Part and parcel of all of that is integrating stakeholder's expectations and conversely managing the expectations and perceptions of those same stakeholders is also vital on a number of levels. However, if all of the above is managed and managed well, then the outcomes for firms like Thai Airlines that use managerial accounting effectively will tend to be very good.

eferences

Holtzman, M. (2013, May 12). Managerial Accounting for Dummies Cheat Sheet -…...

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References

Holtzman, M. (2013, May 12). Managerial Accounting for Dummies Cheat Sheet - for Dummies . How-to Help and Videos - for Dummies. Retrieved May 12, 2013, from  http://www.dummies.com/how-to/content/managerial-accounting-for-dummies-cheat-sheet.html 

Money-Zine.com. (2013, May 12). Financial vs. Managerial Accounting. Money-zine.com Home Page. Retrieved May 12, 2013, from  http://www.money-zine.com/investing/investing/financial-versus-managerial-accounting/ 

Singha Beer International. (2013, May 14). Singha Beer International. Singha Beer International. Retrieved May 14, 2013, from  http://www.singhabeer.com/ 

Tutor2u.net. (2013, May 12). Accounting - Introduction to Stakeholders. tutor2u | Economics | Business Studies | Politics | Sociology | History | Law | Marketing | Accounting | Business Strategy. Retrieved May 12, 2013, from  http://www.tutor2u.net/business/accounts/stakeholder_theory.htm

Yet, success would be reached as the system would be better able to account for the intangible assets within a corporation and link them to the final costs of the service. This view argues that despite its recognized reduced applicability in today's business community, traditional management accounting systems enjoy the benefit of vast expertise and advantages which have been consolidated across time. Therefore, their elimination would have a negative impact and the most desirable course of action would be that of a readjustment of the system to meet the new and continually emerging needs (Financial Executive, 2002).
The next proposition that is being then forwarded revolves however around the idea that it would be even more efficient to replace the traditional systems altogether, rather than spend additional time and efforts to repair the old one. The traditional techniques of management accounting, despite their past benefits, are nowadays less applicable. And…...

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References:

Niedenthal, M., April 20, 2001, Traditional accounting measures don't tell full manufacturing story, Kansas City Business Journal,   last accessed on July 3, 2009http://www.bizjournals.com/kansascity/stories/2001/04/23/focus4.html 

March 1, 2002, Rethinking accounting: Traditional accounting designed for an industrial economy of tangible assets, is under increasing pressure to modernize and reflect the value of the New Economy's intangible assets, Financial Executive,   last accessed on July 3, 2009http://www.allbusiness.com/management/130049-1.html 

2009, The World Factbook -- United States, Central Intelligence Agency, last accessed on July 3, 2009https://www.cia.gov/library/publications/the-world-factbook/geos/U.S..html

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 the other purposes (emphasis added) (Garner & Tsuji, 1995, p. 52).
The strategic product decision function of management accounting described above is based on the strategic management accounting method; this approach serves to cause change in the management framework through various accounting devices designed to adapt effectively to the constantly changing external business environment (Garner & Tsuji, 1995). Strategic management accounting, though, should be managed by production people (including sales and engineering), rather than by accounting staff (Garner & Tsuji, 1995).

Under…...

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References

Anthony, R.N. (2003, January 1). Management accounting: a personal history. Journal of Management Accounting Research, 15, 249.

Black, T., & Gallagher, L. (1999). Are physical capacity constraints relevant?: Applying finance-economics theory to a management accounting misconception. Australian Journal of Management, 24(2), 143.

Cooper R., & Kaplan, R.S. (1990, February). Measure costs right: Make the right decision. CPA Journal, 25.

Cortada, J.W. (2004). The digital hand: How computers changed the work of American manufacturing, transportation, and retail industries. New York: Oxford University Press.

role of management accounting for Bravo plc and discusses its use as an effective management tool. Management accounting, also called managerial accounting, is concerned with providing information to managers inside Bravo, those who direct and control its operation.
For management accounting to have strategic value, it must accomplish the three strategic objectives of quality, cost and time. Management accounting achieves its objectives by providing information that links the daily actions of managers to Bravo strategic objectives; by enabling Bravo mangers to effectively involve the entire extended Bravo enterprise of customers and suppliers in achieving strategic objectives; and by taking a long-term view of Bravo's organizational strategies and actions. Once Bravo managers understand the benefits to their organization that management accounting provides, they can use the information that is generated to make better decisions and improve the company's performance (Bell, Ansari, Klammer and Lawrence, 2010).

The Institute of Management Accountants (IMA) defines…...

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Works Cited

Bell, J., Ansari, S., Klammer, T., and Lawrence, C. 2010. Strategy and management accounting. Retrieved May 2, 2011 from  http://college.cengage.com/accounting/ansari/management/1e/students/modules/mod11.pdf 

Caplan, D. (2009). Management Accounting Concepts and Techniques. Retrieved May 3, 2011, from  http://www.denniscaplan.fatcow.com/Chapter01.htm 

Financial and management accounts: the basics. (2010). Business Link. Retrieved May 3, 2011, from  http://bgateway.com/bdotg/action/detail?itemId=1073791257&type=RESOURCES 

Geense, I.M. (2005). Managerial Accounting. Retrieved May 3, 2011, from  http://www.managerialaccounting.org/

Management accounting combines traditional accounting responsibilities with management responsibilities, which allows a company to align budgetary considerations with the people handling the money.  There are a variety of different topics in management accounting that could serve as a good springboard for research, because how it is applied can vary tremendously depending on the size, purpose, and structure of an organization.  Regardless of the approach, it is clear that management accounting has become an important component of the decision-making process in business of all sizes and that the continued evolution of this practice should results in....

In today's competitive academic landscape, the significance of co-curricular and extracurricular activities in shaping well-rounded individuals cannot be understated. This holds especially true for students pursuing a Bachelor of Science in Management Accounting at the University of Batangas (UB) in the Philippines. By actively participating in these activities, students are able to develop essential skills and qualities that align with UB's attributes and program outcomes for management accounting students. In this essay, we will explore the impact of co-curricular and extracurricular activities on UB's BS Management Accounting students, both at a macro and micro level, within the context of one....