Question

In: Accounting

Your essay should focus on the challenges facing business when making and implementing decisions. The effectiveness...

Your essay should focus on the challenges facing business when making and implementing decisions. The effectiveness of one or two key management accounting techniques and concepts should feature prominently in your work, as should academic and practical evidence to support or challenge how successfully the techniques achieve their aims.

Solutions

Expert Solution

The effectiveness of one or two key management accounting techniques- Couple of major key management accounting technique as below :

Financial Planning – Main objective of any business Organization is maximization of profit .Financial planning is one of teh best tool in this matter.

Financial Statement Analysis – Financial Statement analysis always help management to understand about revenue growth , business growth , any challenged in relate to revenue + any cost over run . Thsi analysis done through comparative analysis ,ratio analysis etc.

Cost Accounting – complete cost accounting system – product wise ,process wise , department wise . use of standard costing system and determined Favourable + Unfavourable position

Cash flow analysis – Top most important analysis for any organization , With help of this analysis , Management can understand about total cash flow position at Operating , Investment and financial level . This analysis helps to understand any challenge in Working capital movement , any working capital blockage exist or not . With this analysis ,we get to know company total movement of debt issue , repayment , dividend , Interest movement etc .

Marginal costing – With help of this costing system , we can tale decision of “ Make or buy” . We can decide to utilize resources at optimum level . Best way to understand multiple product mix , sales mix , derive of contribution etc

Budgetary control -   This is almost in line with financial planning . Company used to prepare annual budget as well as Quarter budget and do comparison the same and determined variance . Management has to review budget number with Actual position and any negative variance , must be take necessary step


Related Solutions

Challenges in Implementing Physical Security. In your opinion what are the challenges in implementing physical security,...
Challenges in Implementing Physical Security. In your opinion what are the challenges in implementing physical security, this includes social engineering.
8. In making business decisions, corporations should strive to be “good citizens” by evaluating ________________. the...
8. In making business decisions, corporations should strive to be “good citizens” by evaluating ________________. the legal and ethical impact of each business decision the public relations impact of each business decision the safety risks for consumers and employees of each business decision all are correct none are correct 9. The court in the case found the award of punitive damages was proper in light of Ford's actions. True False 10. In the video, Milton Friedman stated: "The government has...
What are the challenges that you have encounter in implementing the decision making in the case?...
What are the challenges that you have encounter in implementing the decision making in the case? CASE It had been a long week and it was only Tuesday. At 2:30 p.m. on a Tuesday afternoon in Prairie City, a small town located in a rural area in the upper Midwest, all indications were that this was going to be a difficult week. Ann Smith, the new clinic administrator for Prairie Health Services, had just finished taking her third call from...
Risk is not a significant factor when making financial decisions because all business decisions involve predictions...
Risk is not a significant factor when making financial decisions because all business decisions involve predictions about the future, which is unknown. T/F
How will a decrease in interest rates impact your investmentchoices and decisions?Particular focus should...
How will a decrease in interest rates impact your investment choices and decisions?
In a short essay, What should humanity do about Global Warming? Why? Please focus your essay...
In a short essay, What should humanity do about Global Warming? Why? Please focus your essay on the Engineering Economy aspects of the question.
Essay: It is generally accepted that autonomy should be followed when end of life care decisions...
Essay: It is generally accepted that autonomy should be followed when end of life care decisions are made; however, some bioethicists have challenged this, stating that there are some situations when the patient's autonomy should be overruled. Discuss these situations and argue for (or against) each situation from a bioethical standpoint.
How is utilitarianism useful and problematic when making decisions that affect others and how should a...
How is utilitarianism useful and problematic when making decisions that affect others and how should a business determine what actions to take?
What are the biggest challenges to implementing a fact-based decision-making culture. Discuss.
What are the biggest challenges to implementing a fact-based decision-making culture. Discuss.
What are the benefits of Business Intelligence by Amazon and, the challenges they faced in implementing...
What are the benefits of Business Intelligence by Amazon and, the challenges they faced in implementing and using BI?
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT