Question
There are diametrically opposed views on the use of cost and management accounting.The first view holds that cost and management accounting is useful to business
There are diametrically opposed views on the use of cost and management accounting. The first view holds that cost and management accounting is useful to business organizations. This view holds that cost and management accounting has many advantages in planning and decision making. However, the second point of view counters this point of view by stating that the usefulness of cost and management accounting is essentially context specific. For example, the usefulness of cost and management accounting for small organizations is doubtful, since the adoption of cost and management accounting is likely to be expensive. In the context of these conflicting views, discuss the following issues:
Discussion Questions:
1. Is it wise to question the usefulness of cost and management accounting? Why or why not?
2. Is cost and management accounting also relevant and useful for small organizations? Because?
3. Can we argue that the adoption of cost and management accounting can be done in stages? For example, can it be adopted only after the organization reaches a desirable scale of operations? Give your critical point of view.
Step by Step Solution
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Step: 1
1 Questioning the usefulness of cost and management accounting is a reasonable approach for any organization It allows businesses to critically evalua...Get Instant Access to Expert-Tailored Solutions
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Step: 2
Step: 3
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