Managment Accounting, Financial Control, Management Control, Strategic Management Accounting (Sma)

3965 Words Jul 28th, 2008 16 Pages
Introduction:

To better understand differences between many similar types of terms in accounting such as management accounting and financial accounting, management control and financial control and strategic management accounting we will explore the case study of TNT and how the company has been able to implement these important concepts practically in this case.

Firstly, we will see how the management and financial controls were used in order to achieve what Taylor say’s is Critical Mass. We will also see how efficient and effective Taylor was in utilizing his resources given the limited number of employees and the outsourcing of his production to save underutilization costs.

Secondly, we will examine the spreadsheet which was flexible
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An abstract from an Article which shows example of Management and Financial control
“The Prime Minister told Caucus yesterday that he allowed Mr. Conrad Black's Telegraph Plc to increase its shareholding in the John Fairfax group after Mr. Black persuaded him that he needed greater management and financial control over the company.”
Having established the controls TNT have put in place, we can now explore the facts of the cases from a range of perspectives. Normative theories assist in explaining the rational perspective in the sense that they help explain why individuals aim the maximize behavior. Such behavior is considered rational and driven by self interest that are ranked through personal wealth and thus behavior us maximized through profits, returns in relation to share prices, dividends and rewards. Specifically rational systems aim to reduce transaction costs, focus on division of labor and specialization of tasks . March and Simon (1958) argued that rational actors who contained relevant information aimed at maximizing satisfaction in behavior . Satisfaction was based on bounded rationality whereby most individuals are partly rational and are affected by decision making as they have limited information and limited time to process that information. Scott (1998) argued the notion of the rational perspective being based on the classical management theory. Here the organizations are highly organized in away that will allow them to achieve
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