The second mechanism is conciliation of interest of shareholders with the interests of the employees and the customers. Challenges managers face in efforts to be socially responsible The major challenge that managers face in the endeavor to make the organization a socially responsible business is the customer cynicism.
Another objective is to provide sound decision information. In addition, they give suggestions on valid corrective measures that will improve the financial position of the company Sloan, This is because financial considerations make the Accounting for managers essay vital part in the decision making process, as they determine how the day to day of the business will be affected in both the long term and short term.
They also assess the accounting situations of the business and the investments made by the business preventing bad investments. In my opinion, budgeting processes plus strategic management accounting tools does not encourage a shareholder or stakeholder centric focus.
This represents the amounts of that institutional investors and individual shareholders own and purposes to eliminate problems resulting from separation of ownership and control of the direction the company or business heads.
Mechanisms that might help mangers interest of shareholder or stakeholder The first is Ownership Concentration. Therefore, a sound project is safe and profitable for the business to undertake Ohlson, This is because the funds spent on the social responsibilities have no measurable profit returns to the business but benefits the community.
Thus, they assess the financial viability of opportunities, long-term viability of loans and stability of investments made by the business. In addition, the business decisions made have to be in line with the laws put in place by the government and other relevant bodies.
The focus is on the growth of the business ensuring the long-term and short-term objectives of the business concur, and that decisions made do not affect the future of the business negatively.
Appropriate objectives The main objective of both the financial and accounting managers is risk management Scott, Finding social responsibilities that benefit both the business and the community is hard, and it is likely to be translated in to corrupt motivation by the community.
They should also aim to improve the operation controls. Instead, they place the focus on the customer satisfaction, motivation of the stuff members and identifying and acquiring new talent. This entails ensuring that the business avoids undue risks and pressure from financial situations that result from business decisions.
This objective requires the information provided o be accurate and relevant in order to be useful for the decision making process Sloan, Thus, their value to the business cannot be underestimated.
They fulfill the objective of supporting accounting by reviewing the information provided by the accounting department for validity and accuracy.
This is useful and vital because business management and owners most often use accounting and financial information to determine the best decision for the business.
Although they are not responsible for the direct running of the accounts of the company or business, they have a major role of supporting accounting. Conclusion Financial and accounting managers play a vital role in the success of the business. A project with a positive NPV means that the project will add value to business or the company.
This is because the focus is not just on the short term or immediate success of the business. Self-serving managers can exploit social responsibilities by undertaking projects that provide the best advantage to the business with the illusion of helping the community.
Most customers have the idea that all efforts made by any business to be socially responsible have a hidden motive that benefits only the business. In order to do this, they have to have a proper understanding of the financial position of the entire business.
This is because they are responsible for assessing the viability of making a business decision. For this reason, the business has to be careful not to appear as though they are boasting of the social responsibilities they have undertaken Herman, Another major challenge is that the business managers run the risk of lower profit margins.
Financial and accounting manager serve as the intermediary between business owners and manager saving the owners time they would use going through information with no relation to the current business decision.
They take it as an advertisement strategy or a disguised campaign.The International Accounting Standards Committee (IASC) was established inhowever replaces by IASB (International Accounting Standards Board)in The IASB is now responsible for producing or releasing international accounting standards, as we all know, international financial reporting standards.
Paper, Order, or Assignment Requirements Question 1 (20 marks) Explain, using examples, why it is essential to create and use flexible budgets when evaluating past performance of a profit centre which manufactures and sells a product. Read this essay on Accounting for Managers.
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Get the knowledge you need in order to pass your classes and more. Only at mint-body.com". Manager Essay. Managerial accounting is primarily concerned with the organization as a whole rather than with segments of the organization. - false | | Direct material cost combined with manufacturing overhead cost is known as conversion cost.
-true The cost of shipping parts from a supplier is considered a product cost. Accounting & Finance for Managers essay-paper | Accounting & Finance for Managers - essay-paper Purpose of the Assessment The purpose of this assignment is to test communication skills together with the ability to analyse, to interpret and to report.
Finance and Accounting for Managers Essay: Introduction The main role of a financial and/ or accounting manager is to give sound advice and support to colleagues and clients in the process of making sound decisions in their business.Download