Management accounting Essay Example | Topics and Well Written Essays - 3000 words

Management accountancy - Essay ExampleBut, desirability and effectiveness of accounting for organization constraint is a critical issue because accounting procedures consists of few collective devices of organizations where business activities ar not only drawn together by values bargonly those are integrated in a quantitative manner. So, accounting is most efficient tool of organizational verify system where standard qualitative procedures are followed to evaluate qualitative performance of the organizations for management control over the organizations. These facilitates other external stakeholders of the organizations like investors, reference pointors etc. for their valuable financial ending making which are extremely depends on actual performance of the organizations. So, this study analyzes the effectiveness or relevance, desirability, faithfulness or reliability of accounting information for management control over organizations. Introduction Organizations show stab le and consistent types of behaviour in interaction with the business environment which is consistently changing. They have wide range of external influences from external business environment but have enough capability to change internally to protect their integrity. This stability and flexibility of organizational internal behaviour and control possess through effective and integrative control mechanism. One of the most important control mechanisms of organizational is internal accounting system. This consists of integrative do work of accounting for implementation of accounting information in management control. So, management accounting systems has major importance in organizations as it consists of some integrative mechanisms that are equal for summarizing the qualitative effect of organizational actions or activities in quantitative values. This study review the major functions of accounting information that helps the management in the area of integrative process of organiza tional control. Efficient accounting provides integrative language for analysing the impact of diverse internal and external influences on organizations that have substantial positive or negative impact on organizational performance. Nature of organizational control with respect to implication accounting information is qualitatively reviewed in this paper to task the necessary conditions for control. These conditions are derived and applied in management control. Main objective of accounting policy is to produce fair valued accounting information that is highly reliable and relevant to the purpose and objectives of financials statement (WBS, 2012). The extent of desirability and effectiveness of accounting information are analysed with respect to management control and strategic decision making process. Further, scope of faithful or reliable accounting information on organizational control by management is also analysed. Again, amount process of organizational performance both qua ntitative and qualitative is analysed with reference to the implication of relevant and reliable accounting information in organizational performance measurement and essential internal reconstruction with respect to change in external business environment. Desirability and Effectiveness of accounting information for organizational control thither are two broad purpose of accounting information, external and internal. External purpose includes the investment decision making by the shareholders and potential new investors of an organization, credit