Current Issue in Management Accounting

6101 Words Mar 24th, 2013 25 Pages
*Accounting Today
Firms Must Change Together -- or Fall Apart
By Danielle Lee
Whether firms manage, lead or ignore them, big changes are a foot in the accounting profession, and the best course of navigation will be collaborative. That journey begins with communication
*Accounting And Finance Current Issues In Management Accounting Accounting Essay
Performance measurement is the process to use the parameters to measure the performance of the organization. This process of measuring performance often uses the statistical evidence to determine progress toward specific defined organizational objectives. The purpose of the measurement is to improve the performance of the entity. Performance measurement is to evaluate how well of the entity. It
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Most of the manufacturing firms are still using variance analysis, but nowadays the trend was changed and conjunct with innovative techniques such as life cycle cost analysis and activity-based costing (ABC). Its purpose is to specific aspects of the idea of the modern business environment. Life-cycle costing recognizes the ability of the manager of the entity, influence the cost of the product manufactured when the product is still at the design stage of the product life-cycle. Even a small change of the product, there is a significant cost saving of the products. Activity-based costing recognizes that most manufacturing costs are based on the amount of the production equipment idle time or the number of production units, to optimize the efficiency of production cycle and to effective the cost control. Both Lifecycle Costing and Activity-based costing avoid the disruptive events such as machine breakdowns and quality control failures.
Management accounting has a fundamental role in performance measurement. Performance measurement in management accounting concerned either the use of performance measures to evaluate divisional and managerial performance or the use of standard costing and variance analysis to control production activities. It can help the management to find out the solution for improvement. The analysis of data can also help management
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