Dynamics of Managerial Accounting Process Research Paper

Dynamics of Managerial Accounting Process - Research Paper Example The research will focus on practical solutions that are dynamic to cater for structural weaknesses in an organization’s management and communication of information. Dynamics of an organization’s management provides for a comprehensive introduction of constraints to managerial accounting and decision-making efficiency in profit and non-profit oriented organizations. Organizations are desperately in need of a supportive and fully integrated accounting system that enables efficient communication of accounting information for vital managerial decision-making. Changes in management accounting take place in a variety of dimensions that are of an irregular nature. However, organizations need to adapt their management accounting tasks, techniques, skills, and tools to the relevant dynamics. The study seeks to analyze management accounting practices to come up with functional solutions in adopting the continual changes concerning the practice. Solutions need to influence managem ent accountants to advance and adopt their practices to be able to relate management accounting to information flow that is wider within the organization. Nevertheless, current dynamics depict shifts from financial accounting practices to those oriented to commerce. However, irrespective of the dynamics, the study recognizes that traditional managerial accounting practices such as cost control, interpretation of operational information, and management budgeting remain essential. The research seeks to represent continuous improvement of managerial accounting with the necessity of adopting a broad view of commerce. Study expectations are directed towards the adoption of non-financial measures where users are able to integrate both non-financial and financial measures into planned strategic activities. Study expectations to solutions also require that managers should embrace ethics in carrying out their day-to-day tasks besides developing quality leadership skills. On the other hand, f uture managerial accounting techniques and tools are expected to be activity-based and forward-looking. The study would also reveal value creation tools that appear to be important for future managerial accounting. Review of Literature Managerial Accounting Dynamics According to Hopwood and Chapman (2009, p. 1222), the manners in which organizations manage various dimensions of change bring about significant implications for managerial accounting dynamics and innovations to changing perspectives. The organization has to understand different types of changes such as predictable and unpredictable, controllable and non-controllable, evolutionary and revolutionary, and comprehensive and incremental among many other types. An understanding of the various types of changes is not only good for organizations, but also a necessity to achieving efficient management. Managerial accounting process is dynamic in nature just like the world dynamics, in order for users of accounting information to remain relevant in future and the present day dynamics the organization needs to have a thorough understanding of the existing change dynamics. Managerial accounting dynamics necessitate organizations to spend resources on solution alternatives to enable standardization of existing accounting tools, skills, and