CHAPTER ONE
INTRODUCTION
Modern business organization operates in an environment that is considerably complex. Since the 1970’s managers have had to cope with rising interest rates materials shortage crises inflation and environment regulations to mention a few. And the traditional method of analyzing problems and making decision have been found in capable of effectively handling this increasing complexities due to the change that exist within the environment it becomes an important characteristics of a good management to be able to evaluate the past changes to react to current changes and to be able to predict the future changes. In this direction management needs information continually which will help in the planning and controlling of the operation of the organization.
The need for accountability has given rise to cost accounting system, which provides information that is useful to management for internal reporting objectives.
Due to the complexities in the system of most organization the system of cost accounting is equally becoming complex and resultantly a body of professional with special expertise in this is created. This body of professional is called the management accountants and the area of study is know as management accounting
Woody et al (1985) define management accounting as the process of identification measuring accumulating analyzing preparation interpretation and communication of financial information used by management to plan events and control within an organization and to ensure proper use and accountability of its resources form the above definition it means that the management accountant has a range of function to carry out in n organization.
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Chapters: | 1 - 5 | ||
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