Answer to Question #197629 in Management for Kamlesh Pandey

Question

Discuss the practical aspects of the management accounting function briefly in the context of the changing global management practices perspective. Student can take any example to build around the aspects needs to be discussed

Answer 1

Management accounting is the practice of gathering and analyzing expense, quality, and time-based data in order to make better decisions in an enterprise. As globalization became completely embedded in economies and the exchange of knowledge across borders became more comprehensive, the accounting profession started to shift positions. Globalization has become effective in the global economies as a result of the transition, driving changes in the accounting craft, while taking larger positions in management.

Management accounting is involved in the acquisition and dissemination of data to the company. Knowledge is essential for businesses to succeed in the global marketplace and increase profits. Globalization has intensified competition, and new technology requires businesses to obtain knowledge faster in order to maintain a competitive advantage. Management accounting in modern businesses operating in a globalized economy must move away from the conventional scale of just providing internal information to the external market and advise the top management team and decision-making team on external parameters influencing and affecting the company, such as competition, and evolving market environments. This data is then used to develop the company's strategies and strategic plans, with the management accounting team playing a key role.

Management accounting is vital to a company's strategic decision-making. It gives strategic decision makers in a company the information they need. Completion is an unavoidable obstacle for businesses operating in a globalized economy, whether locally or globally. Strategic decision-making is an unavoidable mechanism for companies to avoid this issue. Management accounting aids managers in determining the most relevant clients, business replacement goods, essential skills, and the adequacy of funds to finance a strategy while making strategic decisions.

Management accounting adds value to a company by effectively controlling its capital, people, and activities in order to achieve the company's goals. One way management accounting accomplishes this is by concentrating on waste reduction and value creation through the efficient and effective use of available resources. The manager's duties for fulfilling this position are divided into four categories: planning, directing, guiding, and decision-making.