Question

Answer these question in less then 3-4 lines.
Questions

1. Differentiate between Management accounting and Financial
accounting .
2. What are the three management functions that management
accounting information can be used to make them become
more effective? Explain each very briefly.
3. Explain what is the process of control?
4. Why is feedback necessary in management process?
5. What does Total Quality management emphasize [or put
stress on]?
6. What are the two factors that can prevent a manager to
maximize profit ?
7. Give an example of (a) planning (b) decision making
8. What is employee empowerment ?
9. How can ethical conduct improve profitability of a company

Answer 1

1.

Financial accounting information presents to the entire stakeholders of the company, i.e., to both internal and external; where management accounting is presented to the management of the company.

Adherence to GAAPs is mandatory for financial accounting whereas management accounting is flexible to the needs of the company

2.

i. Policy formulation: These are the guiding statements for its personnel formulated by the management

ii. Planning: It is a function contains setting and deciding on paths to achieve the objectives of the firm

iii. Controlling: It is the management function which detects and corrects errors

3.

Control is one of the three crucial functions of the management which aims at being certain that the path of the organization does not deviate so that it can achieve its objectives in a more efficient manner.  It has sub-functions like standards setting, performance measurement, comparing with previous performances, identifying deviations and suggesting corrections required.

4.

The main reason why feedback is important is that the feed back provides the organization with the motivation it requires to achieve its predetermined objectives. The optimum outcomes can be obtained only when management monitors the employees performance regularly and provide with proper feedback.

5.

TQM - Total Quality management is an effort which spreads throughout the organization.

TQM helps the organization to set the organization environment such that the workforce improves it ability to provide the goods and services required by the customers at the best value as perceived by them, in a timely and efficient manner, Continuously.

6.

Quantitative factors:

Example for the quantitative factors are sales and costs

Qualitative factors:

Examples for qualitative factors are customer prefereces, market share etc.

7.

Planning: Plan to increase sales, plan to increase market share

Decision making: To manufacture and sale a particular product or not, to recruit an employee or not

8.

Employee empowerment is a technique of allowing a defined degree of autonomy and a specific set of responsibilities to the employees of the organization to improve the performance and satisfaction, to increase the involvement of the employees.

9.

Ethical conduct helps to improve profitability by

i. minimizing costs

ii. improving efficiency

iii. Better customer relationships etc.