Management Accounting and Business

Management Accounting and Business

Management Accounting

The world of business in recent decades has gone through a process of transformation that has brought the main result. Moreover, an internal reorganization of companies emerged, promoting the strategic action, which has influenced the search for techniques capable of transmitting information to make appropriate decisions. The management company today cannot exercise adequate control if they have the detailed figures for cost of materials at the right time, of labor and costs of each indirect product or service, as well as the cost of sales and administration associated with them, the damaged products, the waste, and the time lost, among others (Lawrence, 2008).

This is coupled with the fact that the conditions prevailing today, forcing the company to integrate into their competitive strategy, in addition to conventional factors, are indicators of the most effective contribution made ??by the operations of the organization's strategy. In this new environment, management must know every result and every difficulty that need for quantitative and qualitative information to manage and take the organization to stay in the market for competition. Management Accounting, or Accounting devoted to information for internal purposes, has been one of the most used and information system for management because it allows knowing the result of the company and each of their areas, contributing decisively to the decision making process, according to their three basic purposes:

Valuation of inventories;

Planning and Control;

Decision Making.

It should be noted that the evolution of management accounting has been closely linked to the development of organizations, which is evident given its objective of providing timely information to management therefore has to respond to the needs of the substance from environmental requirements. Under current conditions, Management Accounting retains its importance. It may be noted that it is the most needed role as organizational complexity is greater and there is more competitive pressure and, therefore, management control is essential. To achieve the required level, the management of costs is a commitment of resources, and there is a need for the development and implementation of policies and procedures and establish appropriate flow of information relevant costs. In the contemporary business, the main objective of management accounting is to allow the adoption of rational decisions that make the competitiveness possible.

In terms of planning strategies and management of accounting, continuous improvement of internal production processes, quality and quantity is essential to be considered. The control and strategic management of costs in all functions and segments of the organization are to be carried out. There are some unquestionable possibilities and functions that require some form, information on the costs of resources used in business, although it is clear that all organizations do not need the same systems, or use the information for the same purposes. Thus, they should choose or design the right system to use in response to their needs. Another aspect to consider is that all organizations need a cost system designed according to their particularities, whether products or services, profit or nonprofit, ...