In general, an activity that accounting is an overview of all financial transactions to keep in cash or by credit card, which takes in an organization. Accounting is the only way to get reports on the financial situation, and it is now by increasing the profitability of a company, which in turn is the ultimate goal of any organization.
There are two types of accounts, is one of the accounts and the other is management accounting and cost accounting. “Financial Accounting” deals mainly with the projection of the financial situation of the company for shareholders, creditors outside of a company.
So it may be more appropriate than for a large organization. But in Management Accounting is a must for every company, large or small, valuable data for the key people responsible for their day to provide ongoing operations and to qualified executives who are in the business.
Practice of Management Accounting Change was a sensational, from ancient times when it was only an analysis of standard costs and the estimated costs with revenues over a longer period.
At 80 and 90, including the accounting, “Activity Based Costing”, which is nothing other than any action on consolidated know valued at cost, in contrast to the days when were the raw materials and labor costs, the parameters for accounting.
Provides parallel with the activity-based costing method called “Balanced Scorecard”, the financial measures and performance criteria were given as targets, virtually every object is created as a means to achieve the expected performance.
It was almost everybody in a company and managers were put in a position to achieve short-term goals, a long-term. The managers were not able to predict exactly where the traditional methods of accounting has occurred with the loss incurred, only the total loss was unknown. Now, with the activity for financial reporting and a new way of accounting “bottleneck accounting” refer to areas or departments were the main cause for the loss or shortages. A manager can know exactly all the bottlenecks and what needs to be treated first.
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