Strategic Management Accounting System Essay Example | Topics and Well Written Essays - 2000 words

strategicalal Management Accounting System - Essay ExampleIt further explains the control procedures expected at the tercet levels of management control (strategic, tactical and operational) and provides a discussion of how control is exercised and education required at individually management level, relates to Highline Co. Ltd.The traditional management account systems are of minimal use in the preparation of the strategic plans, monitoring of achievement process of predetermined objectives of the organization and performance military rank of the employees. The failure of traditional accounting systems give birth triggered the process of research in order to find out the suitable methods which bum eke the changing business techniques in order to achieve the organisational objectives in todays global business environment (Ittner & Larker, 1998).According to the evaluation of the manufacturing data in different companies it has been found that the manufacturing has been trans formed. Labour greet is no more considered as the world-shattering cost of manufacturing, it has been replaced by the overhead cost which has get going a significant cost of manufacturing process. This change has trim down the usefulness of the traditional accounting techniques. By undertaking the examination of the material cost and labour cost data the validity and generality of these claims can be tested. Moreover, the extent to which manufacturing has changed over time and the nature of these changes can also be examined. This can help the management of the company in designing an effective and up to date management accounting system according to the current needs of the company. The changing products and management styles wee-wee reduced the usefulness of cost accounting and management control systems in the modern age of information technology which were previously used in many organizations.Decline in Direct LabourThe mechanization of the machinery assembling plant in t he company has reduced the number of labour used in the toil process. Labour cost constitutes a small portion of the manufacturing costs and the overhead costs have become the major constituent of the manufacturing cost. The changing trend has also raised the level of manufacturing overhead which represents 33% of the count manufacturing cost in the company.Due to the changing pattern of manufacturing process the traditional cost systems also lead to fail in the true valuation of cost. It has been noted that the management has taken inaccurate decisions and adopted strategies which have restrain the manufacturing process. In order to confirm the above assertions the management can gather data to crush two important issues 1. The production labour has declined as a percentage of append manufacturing costs.2. The ratio of the total wage expenditures to production wages has been increased for all, most, or some manufacturing companies over time. (Boer and