Management Accounting Essay -- Business Budgeting Accountancy Accounta

commission accountingIntroductionManagement control is to ensure that the organization achieves its objectives. in one case the objectives have been agreed, action plans should be drawn up so that the progress can be directed towards the ends specified in the objectives. Such objectives are utilize to make comparison with alternatives in decision making & are also the critical elements in evaluating the success or failure of the action plans. One of the well-nigh widely phthisisd anxiety control systems is the budgetary control & the term Budget itself is one of the objectives that is expressed quantitatively in financial value 1. doubtlessly budget is drawn up for control purposes & guiding the organization towards its objectives.The budgeting process is done quite arbitrary by estimating the expenses in the next year or adding a few percentages from last years budget. Any contingency & extraordinary dollar spent would be acquired from the miscellaneous item as long as it is still a positive figure. The main control function of the budget follows the same old rule no budget, no expenses.The scope of this paper is to look for better control & instruction in the organizations financial resources deployed in training & development, especially in avoiding the ineffective use of resources, increasing accountability, streamlining & upward(a) existing procedures, & managing & measuring performance in a systematic & data-oriented approach.Control & Performance Measurement SystemReferring to Broadbent & Cullen 2, management control is the process by which management ensures that the organization carries out its strategies, i.e. resources are obtained & used efficiently & effectively in the accomplishment of the company objectives. As pointed out by Brooks 3, the role of management explanation is to concern the performance of the organization & the way in which its activities are planned & controlled by its management. Further supported by Bromwich 4, the major functions of management accounting used by management are to plan, evaluate, & control within an organization & to assure use of & accountability for its resources. Although most literatures reviewed (Jeans & Morrow 5, Murphy & Braund 6, Clark & Baxter 7) stated that the major use of management accounting control is on manufacturing process, the concept of performance measurem... ...ctivity-Based Costing, Management Accounting, November 1989.6. Murphy J.C. & Braund S.L., Management Accounting & New Manufacturing Technology, Management Accounting, February 1990.7. Clark A. & Baxter A., first principle + ABM = Action, Lets Get Down to Business, Management Accounting, June 1992.8. Kennedy A., Activity-Based Management & Short-Term Relevant Cost Clash or Complement?, Management Accounting, June 1995.9. Robert G., Fixed Costs & Sunk Costs in Decision-Making Management Accounting, January 1992.10. Broadbent M. & Cullen J., Managing Financial Resources, Second Edition, B utterworth-Heinemann, 1999, p.121.11. Mills R. & Cave M., Overhead Cost Allocation in serve up Organizations, Management Accounting, June 1990.12. Claret J., Budgeting with Flexibility, Certified Accountant, November 1988, p.36.13. Jones R.B., Budgeting & Cost Management A Route to Continuous Improvement, Management Accounting, February 1992, p.36.14. Newing R., Out with the Old, In with the New, Accountancy, July, 1994, p.49.15. Hopwood A.G., Accounting & Organization Change, Journal of Accounting & Public Policy, Vol. 8, No. 3, Fall 1989.