Management Accounting

The recent trend toward globalization, made possible by advances in technology, means that the role of the managerial accountant has become more complex than it was in the past. Where managerial accountants were formerly concerned with internal information, they must now take into account changes in the world's economies, politics, social upheavals and other events that could affect the company' operations throughout the world.

In order to meet these new obligations, managerial accountants must develop new sources of information that may not have previously been important. These can include government officials, counterparts at other firms in other countries and similar industries, and staying abreast of current affairs. The end result is that the globalization of the market has led to an increasingly complex, and rewarding, opportunity for managerial accountants.

Management accounting can be defined as the process of accumulating accounting and other quantitative information and interpreting and periodically reporting this information to management in a manner that will assist management in planning and controlling the operations of a firm. This is in contrast to financial accounting,

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other company quickly and with standards that are common to both. Yet managerial accounting has not enjoyed the same expansion that financial accounting has in this new smaller global village. Where financial accountants have clear purposes in the preparation of financial documents and auditing of companies, managerial accountants are still providing internal information to their companies with the result that standards and practices can differ greatly from country to country. As governments become more insistent that companies operating in their countries follow certain rules, and as tariff and trade regulations change as a result of bilateral negotiations and the General Agreement on Tariff and Trade negotiations (GATT), there will be an increased demand for managerial accounting information to be disseminated in a consistent manner across global companies. Key to the success of the managerial accountant in the 1990s global market is the ability of that accountant to have access to information that can help him assess the costs associated with the global business. This requires not only close relationships with the financial accounting functions taking place within the company, but also with trade representatives from other
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Some common words found in the essay are:
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Approximate Word count = 2779
Approximate Pages = 11 (250 words per page)

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