MANAGEMENT ACCOUNTING Essay Example | Topics and Well Written Essays - 2500 words

MANAGEMENT ACCOUNTING - Essay Example external and internal factors. These factors have redefined how management practices or functions are performed across business organizations. In the writings by Burgstahler et al. (2007), they stated that the transformations have largely affected the decision making process since there is a change in the management structure, which has integrated new roles as well as position holders. In addition, technology is also been increasingly applied in performing management functions. Despite the continuous transformation in the field of management, the constant variable has been the fact that accounting figures have consistently played a key role in the decision making process or rather they have consistently been used to decide the direction that the company should take. The strong reliance on accounting figures to perform management functions has led to the development of management accounting or control systems that were specifically designed to help the management of business organizat ions in the process of control, product costing and evaluation of management’s performance. However, in a seminal article, published by Johnson and Kaplan (1987) they both argued that management accounting systems had lost their relevance since they were inadequate for the modern accounting environment. In particular, they succinctly summarized the inadequacy of management account systems to cope with the demands of modern management by stating the information they generated was â€Å"too late, too aggregated, and too distorted to be relevant for managers’ planning and control decisions (Ezzamel et al. 1990). This present study mainly seeks to discuss the above statement in relation to today’s environment. It will begin with a literature review of the main topic of discussion and even a review on Johnson and Kaplan’s criticisms. Secondly, it will state the methodology that was applied in collected secondary data that were used in this study. In the third part before concluding, the study will conduct a critical analysis on the Johnson and Kaplan’s argument. 2.0 Literature review 2.1 Accounting With reference to the writings by Alkaraan and Northcott (2006), they stated that accounting as a practice focuses on recording, measuring, and communicating financial facts to concerned parties who use the facts for varying reasons. Roslender and Hart (2003) noted that in the present business environment, accounting largely focuses on the preparation of accounting reports and less on bookkeeping, which has been reduced to fairly a routine process because of the increased computerization and introduction of more effective systems of internal control. The users and uses of

Certain rules and regulations related to the commercial domain Essay

Certain rules and regulations related to the commercial domain - Essay Example This study looks into law as ‘the rule that the society will enforce’. The notion of law has been used by several aspects like economic activities, such as production and consumption, social activities, such as social integration and relationship, but the most important aspect is related to the business or the commercial activities. In this context the notion of business law has been used. The role of the competition commission where the person is working can be described by the Competition Act that has been introduced in 1998 under the UK law act. The competition commission is a member body of the ‘competition and regulatory responsibilities under UK law’. The competition commission is part of the competition law of the UK. The competition commission is public body that is characterised as a non-departmental organisation. The commission was started as an independent body by the act of 1998 by replacing the ‘Monopolies and Mergers Commission’ on 1999. The commission is aimed at conducting in-detail investigations into: †¢ Mergers (which are either anticipated or completed), †¢ Markets (which is related to the scale monopolies and monopoly practices) †¢ Regulations (including price regulations and industry regulations etc.). These are the major roles of the commission where the person works as a trainee. The role of the commission is to investigate those above mentioned practices and activities and to refer these investigations to the Office of Fair Trade (OFT). The commission cannot initiate any investigation unless it receives reference by another authority. The commission is responsible for taking decisions regarding the mergers and market and for providing remedial measures to industries. These remedial measures are related to the adverse effects which are or can be obtained by mergers and consumers or producers in the market. After completing its investigation the commission produces a report regarding the investigation and its associated results and submits this to the concerned authority and hence, provides remedial measures or decisions (Competition Commission: General Advice and Information, 2006, p.7). The commission conducted a study on â€Å"Public Enterprises, Government Policy and Impact on Competition: Indian Petroleum Industry† on reference by Indicus Analytics Pvt. Ltd. The objective of the study was to examine the nature of competition in Petroleum Refining. The study showed that there is monopoly in the domestic market and suggested that to introduce competition in the market, it is necessary to lift restrictions on imports (Public Enterprises, Government Policy and Impact on Competition:  Indian Petroleum Industry, 2009) Under the Competition Act 1998, 50 public schools were fined for fee fixing by OFT. These schools include Eton and Harrow. Each school was ordered to pay a fine of ? 10000. Around 40000 students who attended between 2001 and 2004 were supposed to beneficiaries (Smithers, 2006). 2. What are monopolies, mergers and cartels? Monopolies, mergers and cartels are the form of economic organisations where one or very few producers produce homogeneous products. A monopoly is defined as the market structure where only one producer or firm produces and supplies a particular product to all the customers of that product. In the UK market for postal service, the Royal Mail had a 350