Management Accounting System Essay

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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. …show more content…

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 …show more content…

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

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