Applications of management accounting for planning and control of public companies

Financial and economic unity is whatever legal form a system of information consists of a number of subsystems, including accounting and financial and productive system catalog, add to the procurement system and storage, as well as human resources and personnel system, all these systems work together coherently and mutual coordination towards financial, economic and social objectives and the political and economic unity, whether an institution or company as a whole.

Thus the accounting information system subsystem within the integrated information system on economic unity requires coordination and integration with other information systems, especially in cases of competition among all enterprises and uncle various levels became necessary on every company need to continue to improve its performance in order to meet this competition and stay in the market in order to achieve this, the company must rely on more accurate and appropriate accounting information and presented in time for use in planning, control and take appropriate decisions, both Financial and investment, so there must be information systems development process management and continuous improvement of company performance in General and this is what you need, especially companies listed in the stock exchange and which take the form of General contribution of separate property management, the management system has been selected on the basis of activities and budgets system based financial activities as tools for continuous improvement and development of corporate performance and developing accounting systems, particularly their costs management helped the emergence of what is known as a practical activity-based management, which is a model to download activities To reduce costs and administrative use budgeting necessitating also a system of budgets, relying on a model for the management of activities, budget system was prepared on the basis of activities not based categories or products according to the traditional method of budgeting, given the importance of both regular budgets and activity-based management in any company in General and in particular corporations, this report to explain how their contribution to development and ongoing evaluation in the following conversation : -

the concept of management accounting

Represents a tool to provide data and information to different levels in the internal management of financial and economic unit for use in planning and control of various operations on that data and information is provided on an ongoing basis to help with routine and non-routine decisions and solve problems and challenges to the Executive management of the company’s business journal.

the objectives of management accounting applications

You need administrative responsibility and at various levels of senior management detailed quantitative information from financial accounting and cost accounting to administrative accountant on classification and information tab to glean useful and beneficial, for submission to the various administrative authorities with a view to achieving coordination and integration between other administrative and accounting information system on financial and economic unity because it must examine and clarify the objectives of administrative processes and applications including:

(Planning and operations) includes setting goals and standards, policies and procedures, budgeting and writing schedule.

(Management) includes the structure and functions of external and internal relations and appropriate selection for positions

(Guidance and supervision) includes permanent and continuous motivation and leadership for all sections of the unit.

(Control and efficiency) include defining the regulatory standards and measuring performance, diagnose and treat problems with the right decisions.

budget control systems applications

Budget system based scheduling to assemble the resources needed to implement a program containing also a timetable for implementation of the program and budget are one means of actors in the planning, management and coordination and communication between the departments and the activities of the company as one of the main tools for employee motivation and performance evaluation of budgets is one aspect of a company’s success, so balance is financial translation of the company’s plans to use available resources to specific future period of executive management function planning, control and coordination, motivation and performance evaluation for all administrative work.

Applications of management accounting for planning and control of public companies

planning applications in forecasting

Strategic analysis is the basis for all chart types, whether long term or short term planning or medium-term plans that lead to the preparation of budgets and business budgets by hashing the key company plans to long or short term periods, budgets are also used as a method to predict the future to identify expected results and divide the target performance method to identify plans by the company to : -

Short-term operational plans linked to intermediate objectives.

Administrative and tactical plans are plans that care about our structure and determine the appropriate performance level to accomplish administrative tasks.

Strategic plans care for long-term development of the company strategy and outline the direction for the company’s visions.

VA: coordination and monitoring systems applications in assessment

After formatting operation planning process as a process of creating harmonization between all company departments and production variables as possible to achieve the objectives, budget, seeking to reconcile the various decisions of the company for what is in their interest to itself rather than the interest of each section separately, in control of all activities and identify responsible Department assists in knowing the differences and deviations through comparison of the results achieved with the chart for each of the company’s activities, particularly those relating to expenditure. The process to control the planning process consists of three stages:

Recording actual performance

Compare actual performance with expected performance and record differences.

Feedback for weaknesses and problems.

the use of modern management accounting systems in performance evaluation of public shareholding companies.

To meet the administrative requirements for financial and economic unity, accountants are required to identify the dimensions of the administrative process through administrative functions to identify data and information on all the posts and the need for each level of administrative levels defined in the organizational structure of the economic unit in proportion to the quality of decisions that could be taken at that level and that are within its validity, so it takes of accountants: :

know the administrative process as orderly for management cooperation thinking in guiding economic unity towards their goals this way consists of logical thinking of set functions can reside in any economic unit through the exercise by managers of their administrative and economic unit service, you can judge the appropriateness of information requirements in two ways:

Suitable for administrative level addressed him.

Suitable for the person who is making decisions.

determine the decisions that could be taken at each level of administrative levels, the need for data and the necessary accounting information to make decisions on all of the planning and control functions are nested and all administrative levels in the organizational structure of financial and economic unit, so that any economic unit decision maker Manager needs data and information on the two together but differently according to the position in the organizational structure that determines the nature of the administrative levels that are based on the identification of the necessary information to make decisions. Different and generally any structure can be divided into financial and economic unit into three administrative levels:

Senior management and executive level or the strategic level

Level of middle management or tactical level supervisory

Operational management level or professional level.

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Applications of management accounting for planning and control of public companies
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