ACCOUNTING MANAGEMENT

Accounting Management



Traditional Accounting

Introduction

Traditional management accounting in the formulation of operational objectives, decision-making analysis and cost control, tending to focus only within the enterprise environment and existing products, lowering the throttle and so on, their immediate concern is the pursuit of short-term profit maximisation, neglecting new product design and development, ignoring changes in the external environment within the enterprise environment, as well as non-monetary measures of factors, neglecting the pursuit of a higher degree of long-term integrated value to maximise shareholder value. For example, in cost of quality issues, its best quality and cost concept Naishi refers to internal and external loss prevention along with inspection costs and expenses, and four of the lowest quality level, and use it as the quality of the overall goal of cost control (Kieso, Weygandt, & Warfield, 2004, 201-356). However, this only applies to enterprises producing and selling in the current situation, whereby you may receive the lowest-cost short-term profits to the largest effect. However, the product quality is enterprise's life, in the highly competitive situation, product quality due to the problems, it could lead to business in a passive position, affect the future sales of group products, and may even be eliminated . (Drury, 2008)

Problems

There has been a problem of compliance in budgeting in the United States where political actors and administrators often seek to evade or manipulate budgetary laws and constraints. In the United States, after state governments enacted constitutional balanced budget requirements in the 19th century, politicians and bureaucrats devised special taxing districts, non-guaranteed borrowing, off budget spending, and capital budgets to spend beyond their constitutional limits. Also, in response to Gramm-Rudman-Hollings and other budget agreements aimed at balancing the budget and restraining spending, politicians created “rosy scenarios” and endless scorekeeping and accounting tricks as efforts by government to evade or manipulate budgeting rules (William, 1998, 96-125).

What are some of the problems the European Central Bank might have to deal with in relation to the European Monetary Union? Why? A government running a loose fiscal policy could threaten the independence of the European Central Bank by pressuring it to accommodate the needs of an EMU country with high deficits by weakening the euro. Moreover, the contagion effect is possible such that if the government is successfully engaged in free riding, its behavior and that of a tolerant ECB would encourage other governments to act similarly. Finally, the fiscal stimulus produced by these deficits might “spill over” and lead to undesirable aggregate demand effects in other member countries.

Completeness

as part of the requirements by the Code of ethics, CPA should avoid any relationships that may result in the CPA's becoming dependent on the particular client. Such relationships include financial interests and client management. It is very important that the opinion of the CPA reflects the results of operating decisions taken by the client and not any underlying ideas which may be the case if a CPA takes part in the decision making process of the company (Atrill & Mclaney, 2006, ...