Management Accounting And Its Effect On Business Essay

979 Words Sep 29th, 2015 4 Pages
Management accounting states “process and techniques that focus on the effective and efficient use of organisational resources, to support managers in their tasks of enhancing both customer value and shareholder value (Langfield-Smith, 2003). In which, the objective of management accounting in the organization is to encourage competitive decision-making by collecting, processing, and communicating knowledge that benefits management proposal, assessing corporate procedures and company policy.

Over the past few years, the advancement in technology and other factors has taken over the business environment. The development of new technology has created arise for new business form; some great examples are Uber, Airbnb, and Alibaba. These are the companies at the boundaries of the traditional sense of business. For the reason that, business forms change so do the roles and responsibilities that management has on business. There has been an ongoing transition of the role that management accounting plays to support the new business forms.

In the past, a manager’s role consisted of planning, leading, organizing and controlling. Furthermore, they were mainly responsible operational efficiency and employee motivation. Simply, management accountants accumulate and interpret data in order to help managers make decisions regarding the business (Martin and Rice, 2015). Hence, management accounting portrays a major portion in the future of new organizations. As globalization is advancing…

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