Britain Management example essay topic

Management accounting assures managers with the needed information to make the decision-making process easy ir, to provide motivation for their behavior and actions in needed direction, and to push forward the effectiveness of the organization. It helps managers in implementing their responsibilities for planning, controlling, and decision-making by disclosing them exactly what information is necessary, how it can be generated, and used. With the help of management accounting techniques, including profit planning and cost allocation, managers are able to decide which methods to use in gathering and accumulating accounting information. It is also of great value when this information is investigated and introduced in respect to particular problems, decisions and everyday running of business. The time has passed and the international business operations have greatly extended. International frontiers are intensively more obvious to the course of goods and cervices.

Large number of corporations have transferred their operations from just one foreign domestic market to operating a global market. This means that today's corporations produce and distribute their goods and cervices in the markets throughout activity centers on all continents. This is also the reason for the principal structure of corporations and the way they lead their processes and functions to change. The direction toward globalization has influenced managerial as well as financial accounting, so that international accounting standards must be set forth. To run business efficiently, managers should be conscious of and comprehend completely how to cope with the summons of international business operations, such as, exhibiting to different currencies, adjusting and establishing transfer prices for commodities shifting among affiliates in various nations, bargains and removal profits and losses, the methods to oppose potential losses when operating with great deal of currencies, and managerial administrating and sating future goals and activities. The notion of management accounting in Great Britain takes its roots in a more industrial manufacturing economy and goes far to more cervine-oriented economy.

Nevertheless, the foundation of management accounting lies in the U.K. and dates back to eighteens century. They were introduced by the industrial revolution. More precisely, when the industrial revolution appeared to be of great value and importance to the country's economy. Great deal of research have been accomplished on this subject.

All of them stated that management accounting dates back to the late 1700's in Britain. These investigations processed historical data on firms in the end of 1700's and beginning of 1800's that supposes companies brought in industrial accounting (similar to cost and management accounting) to exploit pricing polices to be determined to particular products. It means that management accounting is originated in the U.K. for about one hundred years before that of the industrial revolution in the United States. In Britain management accounting is considered to be a professional, critical experience appropriate to become engaged in the deciding on the exact timing of operations, and the unfolding, connecting, and delivering the strategic purpose.

Managers in Britain are greatly implicated in management accounting practices, that I am going to devote attention to later in this work. Though management accounting is of great importance and influence on running a business, it also has some complexities to come across. One aspect that has been opposing management accounting practices recently is the introduction the Euro, a currency common to all the members of the European Union. In the case Britain considers it is important to enter the union, a lot of aspects will need to be taken into consideration regarding different methods of management accounting.

In the article on the subject of management accounting, the author stresses some of these points. Managers will have to make it certain that their objectives are unfolded for: Re-establishing their financial current and long term accounts into new currency; Handling with the problem of establishing pricing polices regarding euros. Coping with legal issues and probable tax problems created by the European Union. All those three problems are decisive for competitiveness and economic growth in Britain as well as its main partner-countries. It will happen as far as the introduction of the euro will not only make easier the comparisons of price in the countries of European Union, but will also complicate the process of establishing rightness of the different pricing polices of one firm in a variety of countries-members of European Union. Through all its history management accounting has been considered as being very and bureaucratic.

Management accounting methods have appeared to be rather compound and ineffective as compared the cervine-based economy to the product-based on. This notion has become of great importance especially in the last twenty years as the shift form the products to services is obvious. Nevertheless, new tendencies and resolutions have been unfolded towards this problem. One of such improvements is the growth of sales of combining software, which makes the accomplishment of more compound management accounting techniques in different firms easier. There is a great number of management accounting techniques used in today's business world. Most of them develop continually form more industrialized direction to more of an information and service-based economy.

These processes are the same for countries of the European Union as well as for the United States and Britain. Techniques for the other countries are also the same in many ways. The most vividly used are: costing techniques, budgeting, and value-based management. Costing techniques is of great importance to any kind of economy. Defining the pricing policy for the products or cervices a firm provides is significant regardless the country where it is produced or distributed. Usually the cost of the product is set as a current asset until sold, as far as the cost of production is the only aspect incurred in the very cost of the product.

The other non-manufacturing costs are entered as recurring costs and have to be subtracted in the period in which they were undertaken. More over, a few techniques of product costing have been worked out for different kinds of industries.