The Basic Roles Of Management Accounting Essay

1763 Words Nov 18th, 2015 8 Pages
According to Seal, W., et al. argued that managers basically carry out four major activities - planning, directing and motivating, controlling and decision making in order to administrate the organizations and achieve the final goals. Also Seal, W.,et suggested , these four major activities are the basic roles of Management Accounting ; because they believe that Management Accounting is manager oriented, almost any study of Management Accounting need to be ahead of some understanding of what managers actually do, the business environment and the information managers need and the most essential and fundamental parts of Management Accounting should be more concerned with the ‘Management’. Back to the role of information for planning, it seems that it has been widely accepted by most management accounting scholars and professional institutions. Collier (2012) introduced that the Chartered Institute of Management Accountants Board has pointed out that the ‘participation in planning process at both strategic and operational levels, involving the establishment of policies and the formulation of budgets is a core activity and duty of Management Accounting.’ Meanwhile, according to Burns (2013, 152) introduced that ‘well- informed planning could improve the effectiveness and help organizations steer through the often uncontrollable business environment to which they are exposed.’ Will, S.,et al. also suggested that identify all the alternatives and then to pick up the one that…

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