Thursday, February 27, 2020

Management and Financial Accounting Essay Example | Topics and Well Written Essays - 1500 words

Management and Financial Accounting - Essay Example The management account is a system of Accounting which deals with the information that is useful to the managers and employees with in the organization. Information of M A can be money or non money process. It helps in Management of plan, control and decision making process. It does not require any kind of legal requirement. In simpler words MA is useful in the assistance of planning, controlling, decision making and motivation. On the other hand financial accounting deals with the reporting of the official accounts on demand of the shareholder, government agencies and other parties external to the firm. FA deals with the accounts, records and the performance of the firm over a considered period. FA is limited to some companies and FA must be prepared by law. They are to be produced every year. FA mostly deals with money. It should operate with in the framework determined by law and IASS. FA represents the historic picture of the past operations. Preparing of these accounts gave birt h to the some other standard boards under the authorities of the previous standard boards and the government authorities and the main aim of such standard boards is to build up a firm in which such standards are introduced which are useful all over the world and their principle is to from such standards which are useful all over the world and useful for education and, implementing in the calculation of accounts in the multi nationals. And they hope and try their best to create an international standard so compatible that no other firm can be compared with it.

Tuesday, February 11, 2020

Strategic Management Accounting - Assignment Example | Topics and Well Written Essays - 1500 words

Strategic Management Accounting - - Assignment Example The company has been able to maintain a competitive edge through increased innovative, good corporate image and technological advancement. In this organization, decision making can be characterized as participatory where all the management is employed in decision making process. The second problem is presence of management teams that does not have long-range plans, also the management team is not dynamic, i. e., the majority of the management impedes change in the organization. In order to determine whether to replace the existing machine with the new mechanism, we need to calculate the Net Present value relative to the old machine. In order to achieve this objective we will follow the following steps: The decision criteria of the company are to select projects that have their payback period as five years and below. In the case of AL II, the payback period is 9.05 years, therefore, the replacement process should not be undertaken. My advice is to reject the project since the IRR is below the company cost capital. In addition to this, internal rate of return is one of the best criteria as it is considered to be a measure of marginal efficiency of the capital invested. There is need to analyze the firm financial capacity toward financing the replacement proposal. If it is not financially capable in implementing the proposal, the firm should search from resources elsewhere. In this case, the firm may result in borrowing, thus, the firm should consider the cost of borrowing and covenants attached to such borrowed funds (Hoque, 2005). It is necessary to consider the level of environmental degradation occasioned by the implementation of the proposal. If the existing machines pollute the environment at higher rate, that increases chances of the company facing legal suits emanating from environment pollution, the company might consider undertaking the proposal. Another strategic factor that needs to be