The purpose of this paper is to incorporate biblical principles to this course of Managerial Accounting. Being a Managerial Accountant requires a person to be responsible for other’s money in which God has appointed and entrusted that person. Every part of the accounting process requires the appointed person to be a good steward. In biblical times, Jesus told this parable in Luke 16:1-2, “There was once a rich man who had a servant who managed his property. The rich man was told that the manager was wasting his master 's money, so he called him in and said, ‘What is this I hear about you? Turn in a complete account of your handling of my property, because you cannot be my manager any longer’” (Good News Translation). Jesus thought it was
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221). When creating a budget, a manager is entrusted to lay the blueprint for corporate spending for a project, department, or for the entire company. It is important for a manager to act ethically and make moral decisions while creating the budget. As we can learn from Proverbs 22:1 (ESV), “A good name is to be chosen rather than great riches, and favor is better than silver or gold.” Being a good Christian means more than just doing what you are told and being a good employee, it means we should make decisions based on our moral beliefs and perform our duties as directed by our Father. A budget consists of planning a company’s future and taking morality out of that process takes morality out of a company’s future (Wild & Shaw, 2016). Not only is it important to ethically create a budget, it is also important to ethically use the budget to measure the performance of a department or employee. Leviticus 19:15 (ESV) states, “You shall do no injustice in judgment; you shall not be partial to the poor nor defer to the great, but you are to judge your neighbor fairly.” When judging performance it is important to remember that solely basing performance on numbers can negatively affect employee 's behavior especially when the opportunity for the employee or department being judged does not have the …show more content…
Through effective inventory management, proper levels will ensure that a company will meet consumer demands and reduce the risk of loss. From a Biblical perspective, one can look at the story of Joseph and use his time in Egypt as an example. Genesis 39:6 states, “So he left everything he owned in Joseph 's charge; and with him there he did not concern himself with anything” (New International Version). Joseph would go on to manage the inventory of grain for the entire country of Egypt in preparation for the seven year famine. Management principles, such as Joseph’s, can be applied in business today. For example, under absorption costing, a manager can report increased income merely by producing more, which in turn would increase their bonuses (Wild & Shaw, 2015). This, in turn, would increase inventory that may not be sold and place the company at a potential for loss. Joseph’s success in Egypt can be attributed to effective inventory management and his high ethical and moral
221). When creating a budget, a manager is entrusted to lay the blueprint for corporate spending for a project, department, or for the entire company. It is important for a manager to act ethically and make moral decisions while creating the budget. As we can learn from Proverbs 22:1 (ESV), “A good name is to be chosen rather than great riches, and favor is better than silver or gold.” Being a good Christian means more than just doing what you are told and being a good employee, it means we should make decisions based on our moral beliefs and perform our duties as directed by our Father. A budget consists of planning a company’s future and taking morality out of that process takes morality out of a company’s future (Wild & Shaw, 2016). Not only is it important to ethically create a budget, it is also important to ethically use the budget to measure the performance of a department or employee. Leviticus 19:15 (ESV) states, “You shall do no injustice in judgment; you shall not be partial to the poor nor defer to the great, but you are to judge your neighbor fairly.” When judging performance it is important to remember that solely basing performance on numbers can negatively affect employee 's behavior especially when the opportunity for the employee or department being judged does not have the …show more content…
Through effective inventory management, proper levels will ensure that a company will meet consumer demands and reduce the risk of loss. From a Biblical perspective, one can look at the story of Joseph and use his time in Egypt as an example. Genesis 39:6 states, “So he left everything he owned in Joseph 's charge; and with him there he did not concern himself with anything” (New International Version). Joseph would go on to manage the inventory of grain for the entire country of Egypt in preparation for the seven year famine. Management principles, such as Joseph’s, can be applied in business today. For example, under absorption costing, a manager can report increased income merely by producing more, which in turn would increase their bonuses (Wild & Shaw, 2015). This, in turn, would increase inventory that may not be sold and place the company at a potential for loss. Joseph’s success in Egypt can be attributed to effective inventory management and his high ethical and moral