Management Accounting for Accountability-myassignmenthelp.com

Question: Discuss about theManagement Accounting for Stewardship and Accountability. Answer: Changes to accounting methods Motivations for changing the accounting system Improving the service and product quality is major concern of the management as the advancement in the production technology and the requirement for improving the performance through reducing the wastes can lead the management tools like business process re-engineering. Further, the management accounting has the role in these techniques and the non-financial managers are required to understand the co-ordination among new management approaches and accountings. The new activity based costing method is applied as it will emphasize the business process that is required for producing the services and goods and requirement of preparing the budgets and controlling the costs more efficiently. As the external stakeholders are not getting affected for changes in the quality control technologies, they were not required to be reported regarding these changes. Stewardship and accountability As per the given case study, total sales amounted to 6,800 whereas, the profits amounted to only $ 600, that is only 8.82% profit is earned on sales. However, Mr Chang, the owner of the company is in the view that accountant of the company, Mr Rosen is dishonest. To clarify the doubt Mr Chang shall take the following steps The vouchers and authorization related to all the expenses must be checked The expenses and the incomes of the current period shall be compared with the previous year and if any noticeable variance is found, reason for that must be verified. Chang may hold a meeting with Mr. Rosen and discuss regarding the reason behind lower level of profit.