In any kind of organizations or
companies, management accounting support the stack holder's fully considered
decision making after the professionals collect, process and communicate the
information in the processes of planning, controlling and evaluating business
strategies and processes of the company (Anonimous, (n.d.)).
In principles, every business
organization must comply with four principles of managerial accounting. The principles
are credibility, value, influence and relevance. (Cogneesol, 2020). Based on the AICPA (American
institute of public accountants) and CIMA (Chartered Institute Of Management
Accountants) the practical application of the above four principles are
significantly played by three primary aspects. The first aspect is the ability
to find what is required by the business in the process to get the success in a
long time. The second one is that relevancy of strategies and products that people
use should be concerning with the practical use of the principles. The third
one is that efficiency assessment of the operational management accounting and
identification of the improvement scope influenced by competencies of all
involved professionals in the office, performance of the platforms, fundamentals or key areas of performances,
There are 13 specific management
accounting activities available in the sources (Cogneesol, 2020). The activities
include managing cost, external reporting, thinking of financial strategy,
internal controlling, estimating investment cost, managing budgets, regulating
the product price policies, administrating the project, complying with the
regulations, managing the precious assets, thinking about the management of
risk, planning the tax, and forecasting
the liquidity and cash . (Codjia,
2019) also mentioned some fundamentally essential management accounting activities.
Some of them are budgeting, in house reporting of financial status of the
company, analysis of all cost, and procedure, system and internal control
monitoring.
References
Anonimous. (n.d.). The Role
of Management Accounting in the Organization. http://www.swlearning.com ›
expanded › exp_01 DOC.
Cogneesol. (2020, February 26). Four managerial
accounting principles every business must comply with. Cogneesol Blog.
https://www.cogneesol.com/blog/four-managerial-accounting-principles-to-comply-with/.
Codjia, M. (2019, February 11). The importance of
budgetary control in management accounting. Bizfluent.
https://bizfluent.com/facts-6750338-importance-budgetary-control-management-accounting.html.
