A Comparative Review of Management Accounting in Public and Private Sectors

2268 Words9 Pages
Management Account in the Public Sector and Management Accounting in the Private Sector: A Comparative Review DATE OF SUBMISSION Word Count = 1998 Executive Summary The late 20th and early 21st centuries have brought increasing change to almost every country in the world, Australia included. Globalism describes, in fact, the increasing unification of the world through economic means (reduction of trade barriers, support of international trade, and mitigation of export and import quotas). They goal for globalization is to increase material wealth and the distribution of goods and services through a more international division of labor and then, in turn, a process in which regional cultures integrate through communication, transportation and trade. The overall theory is that if countries are tied together cooperatively economically, they will not have needed to become political enemies. Additionally, the idea of globalism and international trade has changed the way Australian's view public and private businesses and the opportunities afforded them because of investment, infrastructure development, and participation in a more global economic structure. In Australia, as in much of the developed world, there are differences between public and private accountancy. The private sector is typically composed of organizations that are non-governmental and privately owned; corporations (both profit and non-profit), partnerships, charities, foundations, etc. The public sector, on
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