Management Accounting Research Paper Example | Topics and Well Written Essays - 1000 words

Management Accounting - Research Paper Example Management accounting is not a specific system of accounts, but could be any form of accounting which enables a business to be conducted more effectively and efficiently. Management accounting in the words of Robert S. Kaplan, is a system that collects, classifies, summaries, analyses and reports information that will assist managers in their decision making and control activities. Accounting may be defined as â€Å"the art of recording, classifying, and summarizing ... transactions and events and interpreting the results thereof†. Two types of accounting are usually taking place in organizations; financial accounting and management accounting. Financial accounting and managerial accounting are entirely different things even though some people perceive both as same thing. Financial accounting is a reporting method to stakeholders outside the organization whereas management accounting is a reporting method intended for the stakeholders inside the organization. In other words, management accounting helps managers inside the organization to take sound decisions. Management accounting is a multifaceted entity and therefore it undergoes various processes like data collection, analysis, interpretations, implementations of decisions etc. Management accounting can be considered as an extension to cost accounting since it uses many of the data used for cost accou nting. â€Å"From a management accounting point of view the primary purpose of management is to make decisions that may be classified as marketing, production, and financial† (Management Accounting and Decision-Making, n.d, p.24). Unlike cost accounting, management accounting is usually done through unregulated channels since it is intended for the internal use alone. Various sources of data such as accounting system, production and sales department, business process etc can affect management accounting. Sources of data for management accounting and how these data are used to make management decisions Accounts department, Production department, sales department and the business process are the major data sources for management accounting. Accounts department is the most important source of data for management accounting. In fact the top managers taking critical decisions about the future business strategies of an organization based on the feedbacks they receive from the accou nts department. Accounts department is the only entity in an organization which knows the current financial strength of an organization. They are the ones who hand the debts and credits of the organization. Moreover, they are the ones which estimate the profits and losses of an organization during a particular period. Accounts department also identifies the underperforming areas of the organization. All these information will help the top managers in taking sound decisions and guiding the organization towards prosperity. Only the production department knows the volume of raw materials, labor and time required for the completion of a particular job and therefore the accounts department should consult with production department before making any estimation about the probable cost an organization may spend for the completion of a particular work. Some jobs may appear simple in its nature; however, the complications involved in the actual production of such jobs are better known only to the production people. On the other hand, some other jobs would be easier for the production department even if it appears to be complicated. Since the accounts departments may not have the technical know-hows about the various mechanisms or methods used in the production of a particular product, costing of a job without consultation with the production department will always generate problems to the organization. The accounts department may quote more or less price for a particular job if they fail to seek the advices of the production de

Personal statement for cambridge University graduate admission Assignment

Personal statement for cambridge University graduate admission - Assignment Example Hopefully working as a business analyst who specializes in corporate governance and due diligence. I should have worked my way up the corporate ladder by the age of 45. I expect to be working as a financial manager for one of the large UK firms by this time. Biding my time until the age of 50 when I see myself as finally landing my dream job of Vice-President of Finance for a major corporation that shall be determined as my career advances. My plans include retiring at the age of 60 while dabbling a bit in non-executive advisory positions on various board of directors for companies I previously worked with. I am honestly looking forward to being able to mentor the up and coming real estate and finance professionals at that time and sharing my wisdom gained from work experience with them. I might even work as a part-time teacher just to keep my financial juices flowing while I am in retirement. After all, it is important to give back to the community by helping to train those who will be the future business titans of New Zealand. Word Count: 300 Question 2 : Reasons for Applying this Course (500 words) My family has a long, deep, professional, and personal relationship with the world of business and Finance. Tracing our roots all the way back to Beijing, China, our family has always excelled in all fields related to banking and finance for more than 3 generations now. Our ancestors have always worked in senior positions in the most respected and leading banking and financial institutions in China. Our most current relatives serve in senior positions in the same industry under some of the biggest banking and finance company names in the region. My parents began their banking and finance careers in Beijing but eventually had an opportunity to work in New Zealand. It was a chance of a lifetime for them and they took it. they currently have thriving careers in the same field in New Zealand at the moment and I am hoping to follow in their inspiring footsteps in the f uture. I am currently part of the third generation of my family that is involved in the business and finance sector aiming for a solid and fruitful career in Finance. Since I still have family members who work in senior finance positions in Beijing, I know that I am on the right track with my decision to pursue advanced studies in finance. They have helped me realize that the world of finance is about to undergo a major change in policies and guidelines in terms of banking, investments, and finance. I need to be prepared for that eventuality by arming myself with the best possible education that I can have which will help me survive that rapid change in the finance sector. I am going to return to China to set up my Asian office and start putting my Asian connections to work in the financial market. Everyone knows that the Asian countries shall be the leaders of the financial world order in the future. I should make sure that I will be a good position to take advantage of the situati on once it finally becomes a reality. This is how I plan to carve my niche in the Asian market. After all, I have the family connections to make it happen, it would be such a waste to not take advantage of it. With the Euro