EAST AFRICA COLLEGE

POST GRADUATE MBA PROGRAM

INDIVIDUAL ASSIGNMENT TWO

Course: OPERATION MANAGEMENT

Course Code:672

STUDENT’S NAME: BY: Anas Rashid Mussa

ID NUMBER………

Phone no.

MAY, 2024

Adama, ETHIOPIA
 Article review on the impact of management accounting and how it can be implemented
into the organizational culture

1. The major objective of the article Research Objectives

The author aims to discover whether management priorities in today’s society changed in terms
of level of importance placed as compared to previous studies and to measure up against the
latest management researchers’ contribution particularly within the important management areas
considered by the company. The objectives of this study are:

 To identify the very important management areas that today’s managers (general,
finance/accounting) prioritized from servicing, merchandising and manufacturing
organizations.
 To match the listing of today’s practitioners’ very important management topics to those
that has been studied by academic researchers.
 To discover the unimportant management areas for today’s managers (general, finance/
accounting) from servicing, merchandising and manufacturing firms.

Specific objective

To ensure consistency once the process of management accounting is adopted, it has to be

adopted as a culture within the organization.

A. Purpose of the article/problem statement

Accounting Management, just like financial accounting is a type of enterprise management

financial management tool, however, in MA, operations are analyzed for strategic decision
making but in FA operations and costs are analyzed mainly for reporting convincing investors on
the sustainability of the business. This research is undertaken for the purpose of explaining,
predicting and to fully understand the value and importance of management accounting research
investigated by scholars and students in the academic discipline to users especially practicing
managers.

B. Data used (including Quantitative or qualitative)

Qualitative data is defined as non-numerical data, such as text, video, photographs or audio
recordings. This means that qualitative researchers study things in their natural settings,
attempting to make sense of, or interpret, phenomena in terms of the meanings people bring to
them.
D. Method of data analyzed

The primary source of data was collected and analyzed through quantitative (survey
questionnaire) method. To appropriately work out with the research objectives the author
additionally used secondary data such as published journals, related management accounting
literature, management accounting textbooks and other research-related documents.

E. Finding and Conclusion

The impacts of MA make it a critical tool in organization’s survival in the short and long term
and therefore, this publication supports its application in all organizations. Such impacts include:
the ability to guide the decisions made through the information provided, the ability to ensure
maximization of both human and physical organizational resources, the ability to ensue strong
organizational operations through the utilization of technologies and the ability to ensue
satisfaction through the products and services provided by the organization.

F. Recommendations

All the management areas of priority are important for today’s managers. Managers provide the
ideas on how to prioritize their work by applying the degree of its importance appropriate for
their day to day business operations. By classifying the management areas from very important,
important to somewhat important were essential in order for them to continuously perform the
right planning, organizing, directing and motivating, controlling and protecting the workers and
the welfare of the organization. Researcher must likewise develop and produce studies about
strategies that integrate people and technology to strengthen the relationships of the business to
customers, partners and distributors.

2. Theories discussed in the paper and how do they compare

Differences between Management Accounting and Financial accounting

Management accounting (MA) is a decision making approach used to increase an organization’s

value by allowing its managers to make decisions based on evaluation of costs and other
performance issues. It is holistic in nature and mainly performed for internal use. This form of
accounting, just like financial accounting is a type of enterprise management financial
management tool, however, in MA, operations are analyzed for strategic decision making but in
FA operations and costs are analyzed mainly for reporting convincing investors on the
sustainability of the business. FA is also compulsory for organizations whereas MA is optional
and dependent on the organization’s ability to effectively utilize the information generated
through the process.

3. Checking for whether the author argues to support/reject a theory, what are his
reasons and validity of the reasons

Management accounting and financial accounting are conflicting to some people yet as it will be
illustrated, these concepts are completely different. To understand the differences, it is important
to understand the application and scope of each of the concepts. Whereas the scope of
management accounting has been aforementioned, this section will begin by describing financial
accounting.

4. Checking for whether the conclusion of the study is aligned with the findings of the study

The overall conclusion of this study is that future management accounting research can still make
progress in the measurement of performance outcomes. From the topics the research the finding
and conclusion is aligned well.

5. The contribution of this article or work to overall management accounting topics

This study will make aware of discovering new and exemplified ideas of the management areas
that will lead to the improvement of management accounting literature by helping, uniting the
interest of both managers and leading scholars and to make the best use of their latest
contribution. This study is important to unite the interest of the users and researchers on the
management areas to support information needed by today’s managers. It help increasingly
becoming a critical decision making process in organizations.

6. The strength and weakness of the paper

Strength

Accounting standards attempt to eliminate, or at least reduce, the confusing variations of

managers and accountants in methods used to prepare and interpret financial statements. Also, in
order to enable users of accounts have reliable information for sound decisions, financial
statements published by companies need to show comparability and consistency as well as
faithful representation of the financial position of the business.
Weakness

The analysis and interpretation of financial statements are fully depending upon the capability of
the analyst and interpreter. Hence, personal prejudices and bias of an individual can affect the
objectivity and effectiveness of the conclusions and recommendations.