Management accounting Essay Example | Topics and Well Written Essays - 1500 words - 1

Management accounting - Essay ExampleMethods such as standard cost and budgetary control are associated with developments in management accounting - this is thought to give birth been as a result of the traditional rise of large and multi-divisional business activities. This observation is in line with what Chandler (1977) set out, when he maintained that modern management ancestorated from the sparing history. The economic history took the position that was previously taken by market mechanisms by introducing an institution with new features, a modern business enterprise or the managed creature. Essentially, by planning and coordinating of the activities in an organization across space and time, as easily as internally capturing efficiency benefits and cost, the managed entity displaced, forestalled, and essentially redesigned market relationships (Coase, 1937). Consequently, management brought about oligopoly since it was possible to create large-scale entities whereby managers manage some other managers through the process of administrative coordination. The organizations that followed these structures were capable of running economically to the extent of redesigning and dominating their sectors, as well as their staff. In essence, the administrative coordination brought about a new source of power, which has eventually redesigned the limits of the organizational and economic scenes. In view of this, it is evident that Chandler contributed towards an explanation of the origin of the modern management by shedding escaped on how different forms of administrative coordination were, at the outset, developed (Hoskin and Macve, 1990). Chandler specified the Springfield Armory as the origin of the development of single-unit management, which was allegedly done in the perspective of introducing an interchangeable part manufacturer. In essence, this location could have been an unacceptable source of the management however, the administrative coordination could not have originated from the reaction from technical inventions, but it mustiness have originated from a distinct and disciplinary intervention. Ideally, in this case, the administrative coordination was put into practice through coordination, worry planning as well as control of staff and plant throughout the extended morsel and space. In addition, another important contributor of the modern management, just as Chandler maintained, is George Whistler who was associated with the Western Railroad. Chandler (1977, p. 97-98) find out that Whistler was the first to embrace cautiously defined, modern, and an internal organizational structure, in 1841. This development was the first American business enterprise to function under a formally designed administrative structure, overseen by regular and paid staff. After Whistler, the Pennsylvania (PRR) was the subsequent key railroad where severance of operating and financial functions was a remarkable development that led to the establis hment of a form of organization described by Chandler (1977) as decentralized line-and-staff division. (p. 105). In addition, the unrelenting examination and production of comprehensive flows of information in both merciful and physical assets reduced operating cost and enhanced efficiency. According to Chandler (1977) the most momentous contributions to accounting was do by Pennsylvania