AN INVESTIGATION OF THE NATURE AND SIGNIFICANCE OF MANAGEMENT ACCOUNTING
- Project Research
- 1-5 Chapters
- Quantitative
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- Abstract : Available
- Table of Content: Available
- Reference Style: APA
- Recommended for : Student Researchers
- NGN 3000
BACKGROUND OF THE STUDY
The production of information for insiders such as firm managers is known as management accounting (Anyanwu, 2010). Managers utilize this data to track their progress toward their objectives and identify any possible issues ahead of time (Anyanwu, 2010). Managers, for example, want to know which goods sell the most. And which aren't doing so well. Which goods are most likely to be purchased together? How is inventory kept track of? What about the money? Will the company be able to meet its looming debt obligations? Budgets, variance reports, sensitivity analysis, income reports, cost predictions, and even competitor analysis are used by accountants to solve these problems. Managerial accountants assist organizations in formulating profit estimates based on revenue and cost projections when they examine how to grow products and services (Sudani, 2000). In brief, managerial accounting has long played an important role in the management and evaluation of a company's success.
Outsiders can use financial accounting to get information. Financial reports describe the firm as a whole, albeit they can be broken down into Business segments and regions, whilst managerial accounting reports may break down performance for managers by particular products or parts of the country (Romeo, 2011). These reports are the quarterly and yearly financial statements that publicly owned corporations must file with the Securities and Exchange Commission (SEC). The function of accounting departments within corporations has evolved during the previous two decades. Accounting departments are being asked to increase profits through the application of accounting methods, rather than simply providing information to insiders and outsiders. Instead of simply reporting the firm's quarterly profits, accounting departments are being asked to increase profits through the application of accounting methods. Various strategies frequently result in varying levels of reportable earnings (Anyanwu, 2010). As a result, profit reporting may be both an art and a science. Managing profits is the term for this procedure. Accountants, for example, may be under pressure to satisfy internal goals. Managers may wish to demonstrate to their staff and board of directors that they were able to boost income while lowering costs. With a case study of Dunlope Nigerian Plc, the research aims to give an assessment of the nature and relevance of management accounting.
1.2 STATEMENT OF THE PROBLEM
Many organizations are unable to afford the services of a management accountant, resulting in a lack of data and information for quality management decision making (Sudani, 2000). Budgets, variance reports, sensitivity analysis, income reports, cost estimates, and other accounting reports are missing from such organizations. Poor management decisions result in waste and inefficient use of resources, as well as excessive costs, low income, and a loss of profit (Ejike, 2019). The production of information for insiders, such as firm managers, is known as management accounting. Managers utilize this data to track their progress toward their objectives and identify any possible issues ahead of time. For example, managers want to know which goods are selling well and which are not. Which goods are most likely to be purchased together? , How is inventory kept track of? What about the money? Will the company have enough cash on hand to make its next loan payment? Budgets, variance reports, sensitivity analysis, revenue reports, cost predictions, and competitor break even analysis are used by accountants to solve these problems. Managerial accountants aid in the formulation of profit estimates from revenue and cost projections when businesses examine how to expand their products and services. In brief, managerial accounting has long played an important role in the management and evaluation of a company's success. As a result, the research topic is to offer an assessment of the nature and relevance of management accounting using a case study of Dunlop Plc.
1.3 OBJECTIVE OF THE RESEARCH
1 To determine the nature of management accounting in Dunlop Nig plc
2 To determine the significance of management accounting in Dunlop Nig Plc.
- Identify the challenges of management in this modern era.
1.4 RESEARCH QUESTION
1 What is the nature of management accounting Dunlop Nig plc?
2 What is the significance of management accounting in Dunlop Nig plc?
3 What are the challenges of management in this modern era?
4 What is the Impact of management accounting on management decision in Dunlop Nig Plc?
1.5 SIGNIFICANCE OF THE STUDY
The study shall provide the principles and methodology of management accounting statements. It shall state its significance and provide use information to managers and accounting officers on the use of management accounting.
1.6 SCOPE OF THE STUDY
The study focuses on the appraisal of the nature and significance of management accounting with a case study of Dunlop Nig plc.
1.7 DEFINITION OF TERMS
MANAGEMENT ACCOUNTING: Management accounting is the development of information for insiders such as company managers. Managers use this information to measure the progress toward their goals and highlight any potential problems in advance, for example, managers want to know which products have the best sales and which are selling poorly. Which products tend to sell together?, How is inventory being managed? What about cash? Will the firm have enough cash to pay its upcoming debt payments?Acountants answers these questions with budgets , variance reports, sensitivity analysis, revenue reports, cost projections,and even analysis of competitors.When firms consider how to expand products and services, managerial accountants help formulate profit projections from revenue and cost projections. In short, managerial accounting has historically played a large part in the control and evaluation of the business and its performance.
FINANCIAL ACCOUNTING: Financial accounting provides information for outsiders.whereas management accounting reports may break down performance for managers by Individual pproducts or regions of the country, financial reports summarise the business as a whole eg income statement, balance sheet, statement of cash flow.
AUDITING: This is an independent examination of and expression of opinion on the financial statement of an enterprise by an appointed auditor in pursuance of that appointment and in compliance with any relevant statutory obligation.
INTERNAL AUDITOR: Their responsibility is to oversee the firms financial and operating procedures, to check the accuracy of the financial record keeping to implement improvements with internal control to ensure compliance with accounting regulations and to detect fraud.
EXTERNAL AUDITOR: External auditor are accountants from outside the firm who review the firms financial statement and its procedures for producing them. Their Job is to attest to the fairness of the statement and that they materially represent the condition of the firm.
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