Management Accounting Essay Example | Topics and Well Written Essays - 1500 words - 1

Management Accounting - Essay Example The system of product costing is particularly used to assist in determining the amounts in the inventory balance sheet, and the income statement cost of sales. The information gathered in management accounting is mainly financial in nature, as well as, dollar dominated, although in most cases, systems of management accounting collect and report information that is non-financial as well (C?adez? & Guilding, 2007). This essay is a review of the operations of management via accounting in modern enterprises, as well as, an analysis of the way in which management via accounting can be utilized to maintain low fuel costs while ensuring safety. Management accounting emerged as an activity that was significant for the first time during the initial revolution of industries, in the enterprises and industries that were leading in those days. As such, financial accounting led to the rise of management accounting, which has its origin in its European merchant stewardship role of trading venture t hat began in Italian Renaissance, as well as, tax records that have apparently been required by governments for the duration that they have existed (Abdel-Kader, 2011). In the book The Visible Hand by Alfred Chandler (1977), he argues that the history of American business can be categorized into two phases that are separate, one representing the market economy which is what economists characterize as perfect completion, and the other phase represents managerial capitalism. The new structure of line-and –staff, after it has been merged with the new process that is continuous of producing, as well as, analyzing accounting and information that is statistical, allows information and plans in the enterprise to flow up and down (Chandler, 1977). Some of the ways that management via accounting enables managers to deliver economic, efficient, as well as, effective outcomes in a line-and-staff structure, is by Lowering Internal Transaction Costs This involves the lowering of the trans action costs internally through the routinizing of the units transactions. With the use of the modern technology the great volumes can make it possible for the costs of transactions to be lowered. Regardless of whether the program priorities are long-term or short-term, the management planning aspect is a vital success and productivity contributor. Every management needs to identify a course of action the organization should take from the alternatives that are available. In order for the transaction management to be operational, as well as, of value more application case studies are required. Through specialization as a result of economies of scale, production shifts to where it is relatively cheapest (Hurt, 2013). Reducing the costs for information on markets and supply This happens through linking the administration that produces units with that of buying, as well as, distributing the units.The price marketing system is the device of coordination that caters for allocations. The p rice that makes a balance between the demands of consumers and the supply by the producers is achieved through market interaction. This market interaction is what is basically referred to as the invisible hand. A consumer’s demand, on one hand, for a commodity highly depends on the price of that commodity to a large extends (Needles, Powers & Crosson, 2011). More rapid cash flow and payment Through the management systems companies promote specialization that is suitable for sustainable development. The more rapid