The Role Of The Management Accountant Is

Large And Not Exhaustive Essay, Research Paper

The Role of the Management Accountant is Constantly ChangingThe

role of the management accountant is large and not exhaustive.. Defining the role of the management account

Depends on many factors including: the goal of the organisation, the size of

the organisation and the structure of the organisation.. Popular consensus however highlights a

number of areas shared by most management accountants.. Most would agree that the management

accountants job is concerned with supplying senior management with information.. This information is not limited to financial

information it relates to any economic information that will allow senior

management to make more informed decisions.Unlike

financial accounting, management accounts must look to the future in many cases

they need to supply information that will help people in the organisation see

the situation in a better light.. A

manager may ask a management accountant.Will

eliminating this product A increase profit on product B.. .Can

we sell this product at a low price and still make profit.. .Should

we create redundancies or cut down on production.A

management account does not often give direct answers but s/he can often make

or break decisions.Management

accountants have a job to speculate on scenarios and create ideas for people

who need the information.. Therefore they

need to be in touch with any factor that can determine an outcome.. These factors are both internal and

external.. Internally the accountant

needs to know about production costs, process, staffing indirect expenses and

as the internal operations match the business environment there are constant

changes which need to be in the management accountants domain.. Here are a number of examples of factors

within the organisation that can change.·

New machinery may increase or decrease costs

within the firm.. The management account

needs to know how much the machine cost and how will it effect costs on the

production line and by how much. ·

New technology is introduced on a monthly basis

in some companies the management accountant needs to know how and if this is saving

money. ·

Economies of scale, downsizing, product

renovation and up-scaling are terms thrown about by senior management.. With the way people operate and conduct

business changing rapidly management accountants need to be able to adapt to

new situations.External

factors can have an even larger effect on the way things are conducted in the

business.·

Globalisation means that there are thousands of

suppliers, distributors and competitors for the same products.. The management accountant needs to keep an eye

out for how these factors effect the market. ·

Tax is an issue that needs to be addressed by

the management account sooner than the financial account and many of the

factors s/he deals with are in the future not present or past. ·

Technology reflects upon competition, suppliers

and distributors as well as the company itself.. Accountants need to be aware of factors which may help them cut

costs.Product

lifecycles and nowadays becoming shorter..

That is the distance of time between product launch and product

termination.. Intensive global

competition has made customers become sophisticated in their tastes and loyalty

and has made the consumer demand more from the products they buy.. There are various stages in the product life

cycle. Ü

Introduction Ü

Growth Ü

Maturity Ü

.DeclineAs

these stages shorten in an already vague environment the management accountant

needs to be able to adapt to the situation readily and prepare for the next

step.By

establishing global networks for acquiring raw materials and distributing goods

overseas, competitors are now able to access domestic markets throughout the

world.. For companies to be successful

nowadays they need to not only compete with domestic competition but also

against the best companies in the world..

This has been added by deregulation in many industries, privatisation

and the opening up of markets such as the EU and China joining the WTO.. New markets and globalisation create both

opportunities and threats part of the management accounts job will be to

analyse situations as they come and help the company what is the best approach

for them in regard to globalisation.Management

techniques have developed into a complicated approach to running a

business.. Many firms favour an approach

to running a business placing customer satisfaction a top priority by adopting

.Total Quality Management. (TQM) management employ strategies aimed at cutting

costs and boosting production such as v

Just in time production management . Adopting

techniques whereby the delivery of mate

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