. Block A Development of MA Practice & Theory Theme A2: A Changing Business Envi
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Block A Development of MA Practice & Theory Theme A2: A Changing Business Environment Strategy & Controlling, Management and Production Practices Aszociate Protercor Elm K Fumcl Management Accounting or Management Control Systems Control-an orgnization wt be conrollod Deie n be in place to ence Management-an cganization comcists ofa oup of people who woek togehe hat its strategic intenhions are to achise cetain goal Managament control is the procoss by witich managers ensure that the people they superise lement the mended Systans -a system is a preccribed and uually repetious way of canying ot an activity ar a set of actites. The management connol process is he process by which managers a al lveb 20g that the people my spentse implement thaD' DItended strategic. Anthony and Gorindarajan 2000) Management Control Activities Planning what the oramization abould do Coordinating the activites of several parts of the organzation · Deciding what, ifany, acticn should be taken .Irlencig people to change their behaviouExplanation / Answer
(1) Management accounting refers to the branch of accounting where the managers make use of the accounting information, by properly analyzing it, so that they can take correct and rational decisions about the future problems. Due to the changing external environment, there are many factors that affect management accounting today, such as:
(2) Modern management accounting must focus on the following in order make organizations competitive:
(3) The specific trend which can be highlighted in order to understand the importance of changing management accounting is "Management by Walking around".
Due to the changing environment, globalization and changing technology, organizations are experiencing change in the management accounting. Now managers are more into participative style management and analyzes the situation by walking around the organization and understanding the real situations being faced, rather than just relying on the facts and figures presented in the books. Managers also try to analyze the outside environment in a way so they get an idea of other business houses as well and then take the decisions accordingly.
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