ACCOUNTING AND FINANCE

Accounting and Finance



Accounting and Finance

Question No. 1

The term "accounting mechanics" refers to the specific details regarding how an accounting transaction must take place. In a general sense, "accounting mechanics" are not that different procedures and routines to be followed for the proper and correct recording of transactions in an accounting system. The mechanistic configuration most commonly found in mature, fairly large organizations dealing with large volumes of repetitive, measurable standards of routine operations. In addition, the possibility of implementing the standards suggests that such organizations exist for quite a long time. They already had to deal with coordination problems, and they were able to establish appropriate rules and procedures. Similarly, in organizations such as the mechanistic applicable regulatory operating activities programmed technical systems that can not be too complicated or automated (for reasons which we discuss below). Dialectical Analysis

The three elements of Dialectical Analysis are contradictions, change and totality.

management Accounting change has arisen from a dialectical approach, whereby each element exists together, none in isolation. The Mass production and the mechanistic approach to management Accounting existed pre-dialectical approach. Under the vehicle of Dialectical analysis, Management Accounting change has come from these three elements.



Totality

Management Accounting is an integral element of the total organisational system and interacts with other organisational functions such as production, marketing, human resources management, corporate strategy and so on. Not only that, through its professional alignments and systems of knowledge creation and dispersion, management accounting relates to the wider structural properties of global capitalism (Wickramasinghe et al 2007:30).

Contradictions

Deep contradictions and conflicts are inherent in relations of production. The most typical example is the contradiction between workers' interests and those of business (shareholders). Workers struggle to maximise wages while the business struggles to minimise cost (of which wages are a part) (Wickramasinghe et al 2007:31).

Change

System contradictions lead to system changes through interrelated cycles of crisis-solutions-crisis (Wickramasinghe et al 2007:31).

The most famous example of the mechanistic type of organization the firm, in which production is widespread. Its operating activities represent a kind of chain, which has only one open link. Hence, the system receives raw materials, and further it is functioning perfectly tight manner on the basis of a sequence of standardized operations. Thus, the organization aggressively standardizes environmental conditions. It is well known that in such sectors as transport, metallurgy and production of tobacco giant-sized corporations are trying to influence the forces acting in the supply and demand with the help of powerful advertising campaigns or long-term contracts (sometimes through the creation of cartels). They often use the strategy of "vertical integration", i.e., seek to extend their production chains to both sides, as in the supply side and in the direction of sales (become their own suppliers and customers), which allows them to include some of the force in the field purchases and sales factors in intra-planning process.

Of course, the range of organizations mechanistic type is not limited to large manufacturing and private organizations. Such a structure could use a small enterprise (for example, manufacturers ...