Once operations begin, cost accounting reveals how efficiently the work is being done, where the strong and weak spots are, and how to improve performance. The cost of making a product or providing a service is one of the most critical in a firm’s ability to meet the competition. With cost information to support the decisions, management can issue directives, perform follow up activities, and obtain the operating results that ensure prosperity and growth of the enterprise which I will elaborate more on the second question. In the first question, I may or may not have directly or indirectly answered the second question but I will try my best to elaborate on a few key points as to how cost accounting can help organizations develop innovative new products and achieve continuous improvement. Cost accounting can be viewed as the intersection between financial and management accounting.
The ABC method reflects a lot of accurate information for the leaders of an organization to make decisions. It can help the mangers to figure out what are the most profitable products in the company by providing the details of unnecessary costs and wasting of materials usage. It also can provide the specific information of the overhead costs based on their cost drivers for managers to make the decisions to improve their business processes and increase the overall operating efficiencies. This method can make the company keep adding value to its business process continually, as the role of the managers is maximizing the profits of the organization. As a result, the activity based costing method is the perfect curve for solving the problems of cost allocation within an organization and there are many companies in the world choose to use Activity-Based costing method.
Introduction Keeping record of activities and expenditures is crucial in personal finance planning and could really help in managing personal finances. This paper identify what is accounting and how does it help to manage personal finance, describes products of accounting and bookkeeping procedures that are useful in personal financial planning and how personal financial software could assist in personal financial decisions. What is accounting and how does it help you manage your personal finances? According to Averkamp (2016), “accounting is the recording of financial transactions plus storing, sorting, retrieving, summarizing, and presenting information in various reports and analyses”. Therefore knowing how to carry out these tasks
Another difference is the issuance period, where in Financial Accounting it is provided at the end of an accounting period (quarterly or annually) whereas in Managerial Accounting it is provided as per the management requirements and there is no set period for the issuance .Compliance to accounting standards too could be considered as another difference .Financial accounting information needs to be presented according to the Generally Accepted Accounting Principles(GAAP) as it is issued to external parties unlike Managerial Accounting information which does not need to be in compliance with various standards as it is for the internal use only . Also it could be stated that managerial accounting information is unique to an organization but Financial Accounting information has a standardized layout. Another difference is that, for managerial accounting the information needs to be specific and detailed to suit the management’s requirements e.g. - for each department or branch unlike financial accounting information which is general and contains less details as it is published for the whole
The information can also assist managers in setting a specific goal and thus outline the strategies to achieve the goals. Managers must make sure the company’s objectives and its available resources must be in-line (Sztanó, I 2013). On the other hand, performance reports and control reports obtained from management accounting system enable managers to compare between budgets and actual results to find out the variances and take corrective actions when actual results deviate from budgeted results. If any significant differences detected, managers will investigate immediately to find out the causes (Sharma, V
One goal of the financial management is to make sure you have sufficient funds at your disposal to bear your business operations and strategies. Financial management helps the preparation of cash flow forecasts and budgets. This facilitates you to apportion your financial resources successfully and increase additional capital in good time whenever you like you experience funding
Management Reporting What is Management Reporting? Management involves the handling and control of the different members of a team or an organization, with an emphasis on achieving certain goals. Management reporting is the process of giving pertinent or new information to team members and team leaders about the team’s overall activities, performance, status, and development. Who do Management Reporting? Management reporting can be performed by any member of the team.
Financial management helps to determine the financial requirements of the organization and leads to take financial planning to the organization. • Accomplishment of funds Financial management involves the accomplishment of required fund to the business organization. Accomplishing needed funds play a major part of the financial management in an organization which involve possible source of finance at minimum cost. • Proper Use of Funds Financial management systems help to proper use and allocation of funds which leads to improve the operational activity of the business organization. If the funds use properly, so it helps to reduce the cost of capital and maximizing the value of the firm.
The main important purpose of the accounting information system is to promote the activity of the enterprise and to form a reliable and real picture of it. In addition, the accounting information system promotes the activity of the enterprise effectively by preparing up-to-date information statements, providing as much information as possible so that the data should be understandable all users not only for the experts(bookkeepers) and tracking liquidity. Nowadays accounting software is a programme which makes accounting work processes easier and faster and which makes it possible to meet the information demand of the management. It also can support the accountants’ work, helping to compile reports by in helping to compile reports by recording and processing the events concerning the
It consists of Customer billing statements, Sales orders, purchase Requisitions, Sales analysis reports, Register checking, Vendor invoices, general ideas, payroll information, timekeeping and inventory data, tax information. This data can be used to preparing the accounting statement and reports. (Fontinelle, 2017).Accounting Information System is used for to produce the external stories related to the financial statement, supported through routine activities, Decision Support and Planning and Control, Implementing internal control. Accounting Information roles are classified into External Auditor, Tax Accountant, Consultant and Internal Auditor, Business Analyst, Budget analysts, Financial Analyst, controller and Accounting Clerk. It is discussing the future, and current role of Accounting Information system is analyzing by accountant responsibility and financial