Management Accounting And Its Effect On Business...

Over the course of the last 20 years, the world has become significantly more closely connected. There are a number of events which that have lead to these circumstances including; technological advances, deregulation and globalisation. This rapid changing environment creates a new set of challenges for Management Accounting and more importantly, the role of accountants in the future. Fundamental changes have been made to competitive rules as a result of the business environment (in which entities operate) becoming more fast changing, unstable, and uncertain. These changes have subsequently created changes in the policies created by organisations around the world. As the business environment changes, accounting must evolve to adapt to any changes that occur in the environment and technology. Therefore, accounting is continuously developing effective communication methods of business information to efficiently keep up with the rapid changing business environment. In simple terms, Management Accounting is the branch of accounting that is responsible for meeting the needs of business management in terms of both financial and non-financial information. Management Accounting can be defined as the implementation of accounting methods to present information that is intended to assist all positions of management in decision making, planning and controlling the activities of an organisation. 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