Business Analysis Management Accounting - 1289 Words

1. Introduction All businesses have a large amount of stakeholders. Pauline (2013) defined that stakeholder is a general term to indicate all those who might have a legitimate interest in receiving financial information about a business because they have a ‘stake’ in it. All stakeholders must need accounting information to help them making better decision. Most of the businesses have provided different sort of accounting information like balance sheet and income statement. However, no all the stakeholders need the same information and the purpose is different. Therefore, the main question is what information is required and the proper use of the information. In the following of the passage, it will discuss about the question from different stakeholders. 2. Management Managers are who manage the business on a daily basis. They need to know how well projects are progressing financially and about the financial position of the business. E.g. how much assets and liabilities are they own. Can the businesses able to increase capacity in the next few months? This is referred as management accounting. For instant, managers can use contribution margins to set the product selling price in order to maximise the profit. Managers can use payback period and average return rate to assess the risky of the project. Furthermore, Argilà ©s Slof (2003) found that making decision by using financial report will have better performance. They had set up a research about the comparison of the farmsShow MoreRelatedBusiness Management And Accounting And Appropriate Data Analysis Techniques2364 Words   |  10 PagesExecutive Summary The approach adopted in this paper is to discuss three types of research methods available within the business management and accounting and appropriate data analysis techniques available within the field. As Creswell (2002) noted, qualitative method concentrates on words and observations to express reality and attempts to describe people in natural situations. In contrast, the quantitative approach grows out of a strong academic tradition that places considerable trust in numbersRead MoreManagement Accounting : The Father Of Accounting1415 Words   |  6 PagesIntroduction Accounting has be defined in various ways however almost every definition will describe it as a process that identifies, measures, analysis, and report data. Management accounting has not been the same since business started; it has come a long way from early member of civilisation using stone tablets for bookkeeping. Management accounting is used to aid managers make business decisions based on predicted figures and comparisons with actual figures. To follow is a detailed evaluationRead MoreApplication Of Management Accounting Theories Essay1541 Words   |  7 Pages Executive Summary Management accounting is one important area which is widely used in many industries and areas. 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