Activity-Based Management (ABM)
So fellow Financial Controllers, Finance Managers and Accountants, have you ever heard the following phrase ; I want across-the-board-cuts–everyone reduce costs by 10% I bet you did, the percentage might be different, but we all heard this phrase, in some way or the other. But does it work? It barely gets the desired results. Why? […]
Why does Budget Fail?
Budgets are an integral part of running any business efficiently and effectively. The process begins by establishing assumptions for the upcoming budget period. These assumptions are related to projected sales trends, cost trends, and the overall economic outlook of the market, industry, or sector. Specific factors affecting potential expenses are addressed and monitored. Why do […]
Significance of Management Accounting in Financial Control
Management Accounting applies to fast-paced, highly competitive organizations. It involves many aspects beyond the presentation of the historic financial results. Management accounting generates management reporting in the way that information gets useful for management decision making. Moreover, it analyses Revenue, Sales, OPEX, and Cost control of an organization. Management accounting is employed to enhance visibility […]
Performance Management through Management Accounting
Management accounting establishes performance measures of individuals and organisation. Performance measurement cannot be addressed by financial accounting only and hence tools devised by management accounting need to be deployed to achieve segment’s and/or manager’s performance measures in a given period. A Responsibility centre is any part of an organization. It may be a product line, […]