Question

Define and discuss the three major management functions involved in the operation of a manufacturing business and the role of the accounting department in assisting management in successfully performing the functions.

Answer 1

THREE MAJOR MANAGEMENT FUNCTIONS ARE

1-MANUFACTURING MANAGEMENT-THROUGH THIS FUNCTION, THE VARIOUS ORGANISATIONS PROCESSES INVOLVING ORGANISING, PLANNING, CONTROLLING, AND DIRECTING OF MANUFACTURING ACTIVITIES IS PERFORMED.HERE ACCOUNTING CAN HELP TO ACCOUNT FOR THE VIABILITY AND EFFICIENCY OF EACH PROCESSES SO AS EVALUATE THEIR ACCOUNTABILITY IN ACHEIVING UTLIMATE ORGANISATION GOAL.

2-MANUFACTURING ENGINEERING-IT INVOLVES DEVELOPING AND IMPLEMENTING VARIOUS MANUFACTURING METHODS, PROCESSES, MACHINES DESIGN AND LAYOUT.IT BASICALLY INVOLVES DESIGNING AND ENGINEERING TECHNIQUES RELATED TO MANUFACTURING OPERATIONS.ACCOUNTING DEPARTMENT CAN HELP MANAGEMENT TO DETERMINE THE COST EFFECTIVENESS OF SUCH ACTIVITIES AND WHETHER SUCH ACTIVITIES ARE POSITIVELY CONTRIBUTING TO THE DAILY REVENUE OPERATIONS OF THE ENTITY OR NOT.

3-MANUFACTURING OPERATIONS-THIS IS THE MOST COMMON FUNCTION WHERE RAW MATERIALS ARE ULTIMATELY TRANSFORMED THROUGH VARIOUS MANUFACTURING PROCESSES INTO THE DESIRED OUTPUT.HERE ACCOUNTING DEPARTMENT CAN ASSIST IN KNOWING THE FINANCIAL VIABILITY OF SUCH PROCESSES AND WHETHER SUCH PROCESSES ARE EFFICIENT AND MEETING THE ORGANISATION FINANCIAL GOALS OR NOT.