OUESTION: CRITICAL FACTORS IN CREATING MANAGEMENT ACCOUNTING SYSTEM (SUMMARY)
Management account system and control is a system than can be used to aim at correcting the organizational behavior. Karin in her research stated that a well plan Management Account System determines the efficiency and functionality of the organization, while poorly plan of Management Accounting and Control System result to dysfunction penalties. For well-designed MACS the following factors cannot be over emphases, they are:
a. “Control” Factor which include:
• Planning or Preparation: The organization objectives and necessary procedures to achieve the set objectives, and selected measure to determine how well the objectives were met will be measured at this stage.
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The central assumption of HRMM is that people find work pleasurable and desire to contribute in accomplishing goals in their work place, developing objectives in workplace and also making decision. Individuals are encouraged by both financial and nonfinancial means of compensation.
The center of many boundary systems is a set of ethical principle which is a standards relating to acceptable behavior of an organization. Thus, Karin argue that a well- designed MACS should integrate the principle of an organization code of ethical conduct to guide and influence behavior and decision making as face ethical dilemmas.
This research paper shows that most organization attempt to address ethical consideration but elude ethical dilemmas by developing a code of ethics and to shun ethical dilemmas in an organization. Karin said, MACS needs to be configured in such a way that all information is converse to all employee in an organization which will gives the employee confidence to detect and report violation of code of ethics and policy as the case may be. Ethical dilemmas can be avoided if the following factors are considered:
• Professional membership
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The balance scorecard was also recommended by Karin to the managers in other to measure productivity, complexity, flexibility, cycle time and origination. The authenticities of increased pressures and as well the barrier between functional division like marketing, accounting, finances and manufacturing can be eliminated when MACS designer incorporate relevant performance measure into the system. For a change management, the new manager needs a very strong skill (Entrepreneurial and Communication skill) to redesign the system to fit a new policy.
Budget in some organization can be used as financial representation of their policy. In as much as people affect budget, Karin in her research express how budget can also affect people which she said are “human element in budgeting”. How the budget is to be set in other to have a maximum impact on people, who should be involved, and at what level of motivation and performance is to be incorporated into the
Performance objectives? Strategies? Action Steps for
It is important to evaluate the organizational environment in different situation and it focus more on ethical awareness. People should recognize the ethical elements that they see. Find out what effects on their thoughts, behaviors even in ethical dilemma
When we hear of the apparel retailer, Lululemon, we usually think of really overpriced athletic clothing. Lululemon is a luxurious brand for those who want to invest in high quality athletic clothing. This retail company was originally founded in Vancouver, Canada in 1998. In addition, the founder of the company is Denis “Chip” Wilson, who is no longer affiliated with the incorporation due to his unprofessionalism. Over the past twenty years, Lululemon has faced a couple ethical issues, but their ethical culture has also impacted their relationship with customers and employees.
ACC 201 Final Project Part I Accounting Cycle Report Vanessa Ann Williams Southern New Hampshire University The accountant cycle has really impacted me to gain insight on the financial side of Peyton Company. In the accountant cycle, there are many particular directions involve determining the growth of the company such as steps, role, omission and financial statements. It’s important to apply every step from the accountant cycle to make a financial critical decision in the long run. This report will have a breakdown of how to apply the accountant cycle for Peyton Company to be aware of future financial decisions to keep the company holding strong.
The implementation and education of the ethical decision-making model promote moral awareness and company values that can mitigate ethical dilemmas to an extent. The aftermath was devastating for Wells Fargo not just economically but for its image. The corporation can introduce this model in training courses for new hires and current employees. Also ensuring management comprehends the prominence of ethical decisions and are aware that they are the wheels of the car, therefore, lead by example. If the corporation initially had prioritized ethical values and decision-making evaluations at every level of the business, this scandal could have been prevented at least its magnitude.
An accounting memo should be a one-stop shop when it comes to forming a conclusion on an accounting issue. A company would reference an accounting memo to gather information regarding the transaction, accounting evaluation, and reason the position was taken on a problem or issue. The five critical components are listed below as a guide to prepare a professional accounting memo. I. Facts & Background • This section of a research memo is used to describe all the relevant background information to fully comprehend the needs of the transaction and the accounting behind it. •
Having an understanding to ethical consideration and accountability will improve customer satisfaction, employee performance, and the continuum for accountability ("Ethical Leadership: Fostering An Ethical Environment And Culture",
There are standard types of ethics violation which every worker need to know during his operations in the business or an
Solution : Introduction: A budget is an estimation of particular commodity, quantity etc. It can be prepared for any number of days but generally it is prepared wither for a year or quarter... A budget may or may not become the actual outcome.
Introduction: Here in this assignment a management accounting report needs to be prepared for analyzing how management accounting can be useful in providing the managerial information for the purpose of decision making. The organization selected to make this analysis is Southwest Airline. It is a management accounting report in which starting from the background of the company, the management accounting system of the company has been analyzed and how its’ providing the information for the purpose of management decisions being evaluated. Background of the company: Southwest Airlines was shaped in 1978 with reason to serve voyaging service via air course. What's more, after consolidation southwest aircrafts persistently succeed regarding productivity, great worker and union connection and consumer loyalty.
“Ethics”, in an organizational context, comprises a set of behavioral standards, expressed as norms, principles, procedural guides, or rules of behavior, defining what is appropriate (right) and inappropriate(wrong). Grounded in a system of values and moral principles, these behavioral
However, financial performance subsists with different levels of organisation, which is concerned with measuring financial performance of organisation. These measures are categorised into four that includes profitability, gearing, liquidity or working capital, and investor ratios. However, the financial plan of organisation is associated with operating plan since financial plan involves revenue and expenses for the activities that are linked with each objective. Hence, the main reason, in monitoring financial plan is to audit the committee (Hasan, 2011).
This statement is supported by Bennett (2014) wherein ethics clearly defines what is the right and wrong things and shapes what kind of behavior the business should act on. For the sense of business according to Joseph (2013), ethics are constructed and decided by each business and underpins decision that an employee makes. When it comes to the business’ environment, a well-constructed ethics is a key for a considerate and responsible decision making in a business (Bennett, 2014). Business Ethics is very important inside the company, it will show the moral standards that a company or business have whether it is right or wrong and good or bad.
My interest in Accounting stemmed from my optimistic expectation about career development in this field. Accounting is so important in the business world that only on the basis of accounting information, management is able to make investment decisions, and optimize internal operation. Thus, it is widely applied to every business sector. However, due to a strange combination of circumstances, I was matriculated by Biology and Medical Engineering College, instead of the Economic and Management College, in which I could accumulate the knowledge that would allow me to realize my career ambition. Changing major was not easy to operate in our university.
Financial management “is the operational and financing activity of a business that is responsible for obtaining and utilizing the funds necessary for effective operations. Thus, Financial Management is concerned with the effective funds management in the business process. Finance is interrelated functions which deals with marketing function, production function, Human Recourse function and Research & development activities of the business concern. Financial Management is concerned with the financing, acquisition and management of assets with some overall goal in minds. There are three major areas in Financial Management decision making.