nature of strategic management the strategic management process does not end when the firm decides what strategy or strategies to pursue. there must be a translation of strategic thought into strategic action. This translation is much easier if managers and employees of the firm understand the. nature of strategic management the strategic management process does not end when the firm decides what strategy. 1 scope and objectives of financial management learning objectives after studying this chapter you will be able to: define financial management. Know the objectives, scope and how it has evolved over a period of time. The primary role of management accounting is to information in a timely manner to the company’s provide relevant management to help them plan and control the activities of the organization and with which optimal and sound decisions can be made.

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Although this role and its related topics covered are clearly understood by most, if not all candidates or even managers in the organizations, different types of relevant information are needed for different organizations at different times for different situations and purposes. Therefore business skills and sense are often required when tackling organizational problems along with good analytical and writing skills. Management accounting deals with information that is not generally disseminated outside a company, such as salary cost, profit targets and cost of materials per unit produced. Whereas the general purpose financial statements of financial accounting are assumed to meet the basic information needs of most external users, managerial accounting provides a variety of specialized reports for division managers, departmental heads, project directors, section supervisors and other managers within the company. Nature of management accounting accounting has got a very wide scope and area of application. Its use is not confined to the business world alone, but spread over in all the spheres of the society and in all professions. Now a days, in any social institution or professional activity, whether that is profit earning or not, financial transactions must take place.

So there arises the need for recording and summarizing these transactions when they occur and the necessity of finding out the net result of the same after the expiry of a certain fixed period. Besides, the is also the need for interpretation and communication of those information to the appropriate persons. As a matter of fact, accounting methods are used by all who are involved in a series of financial transactions.

The scope of accounting as it was in earlier days has undergone lots of changes in recent times. As accounting is a dynamic subject, its scope and area of operation have been always increasing keeping pace with the changes in socio economic changes. As a result of continuous research in this field the new areas of application of accounting principles and policies are emerged.

National accounting, human resources accounting and social accounting are examples of the new areas of application of accounting systems. We know accounting is the systematic recording of financial transactions and presentation of the related information of the appropriate persons. Accounting is a process: a process refers to the method of performing any specific job step by step according to the objectives, or target. Accounting is identified as a process as it performs the specific task of collecting, processing and communicating financial information. In doing so, it follows some definite steps like collection of data recording, classification summarization, finalization and reporting.

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Accounting is an art: accounting is an art of recording, classifying, summarizing and finalizing the financial data. It is a behavioral knowledge involving certain creativity and skill that may help us to attain some specific objectives. Accounting is a systematic method consisting of definite techniques and its proper application requires applied skill and expertise.

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Accounting is means and not an end: accounting finds out the financial results and position of an entity and the same time, it communicates this information to its users. So, it can be said that mere keeping of accounts can be the primary objective of any person or entity. On the other hand, the main objective may be identified as taking decisions on the basis of financial information supplied by accounting. Thus, accounting itself is not an objective, it helps attaining a specific objective. So it is said the accounting is lsquo a means to an end rsquo and it is not lsquo an end in itself. Accounting deals with financial information and transactions accounting records the financial transactions and date after classifying the same and finalizes their result for a definite period for conveying them to their users. So, from starting to the end, at every stage, accounting deals with financial information.

Accounting is an information system: accounting is recognized and characterized as a storehouse of information. As a service function, it collects processes and communicates financial information of any entity. This discipline of knowledge has been evolved out to meet the need of financial information required by different interested groups. Published: 23, march 2015 management accounting has reflected a significant role in the business lives of accountants, semi skilled and crude accountants and the accounting sector at large. There is a need to constantly develop the practice of this aspect of accounting as it has posed as a challenge towards technology enhancement over decades.

Many authors have described management accounting in various ways that regards it as a controversial topic. I would describe management accounting as a fundamental approach to making business decisions, controlling and planning operations as well as coordinating the managerial process. Frontline managers have reflected the use of basic accounting principles such as costing, budgeting and stock valuation, to mention a few. Management accounting can be traced back to as fart aback as the with reference to burns and scapens 1 journal published in the year 20 which discussed the sense of incapability and impertinence of management accounting and how the non technical accountants and developed professional bodies contribute to this growth.

This essay seeks to review and explain the literature of the reversible nature and importance of management accountant since the year 20 and also to observe other authors arguments and claims that support this manifest. Who wrote this essay request removal example essays major findings from the given article below are the various claims and testifications from the article published by the authors above there are different techniques of accounting traditional, abc i.e. Activity based costing and strategic management accounting new proactive, willingful, smart, challenging accountants have surfaced over the years which has made the accounting process increasingly operational. Further to that john and scapens also evaluated certain factors that suggest to the constructive alteration of management accounting. I have summarised them as follows: global economic competitive situation of the 1990s if managers and accountants sense or foresee a strong competition they intiate a greater emphasis on the market.

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Technology advancement which has laid massive effect on communication inflows and outflows thereby making work related processes much more easier. Organization structure, i.e the creation of mergers and acquisitions in the mid 1990s 1970 1990. Organization started to sell their goods and services to specialist firms in order to outsource activities or departments that they were not capable of handling. The scope of management accountants this part of the essay focuses on my major observations and opinions supporting the claim that management accountants have exceeded the limitations that their role offers in the sense that their character has outstretched its rationale towards the context of the theory of accounting. Feeney and pierceâ 2007 denotes that the role of an ma can be categorized into decision making and the operation of management and controling which is mostly recognized in the budgeting process.

This explains that orthodox doctrines laid by accounting professionals are well carried out by simple and skilled accountants,which has made the service market to be more competitive and aggressive. It has been advised that the traditional role of the management accountant is threatened by the rolling out of more advanced management accounting technique and fronting competition from other management who are acting same role of management accountants. Pierce`s article 2001 says the changing role of management accounting specified that most of the work traditionally carried out his management accountants could have done it as easily as professional.

Lots of theorists have noted that lack of relating clarity and limited details of making routine clears. Management accountant now plays a critical role in accounting by providing data and information business. Published: 23, march 2015 internal audit function is the crucial part of an entity's corporate governance. The purpose of this study is to evaluate whether the companies with an internal audit function can detect fraud with those without.