Explaining Accounting Practices A Strategy -Myassignmenthelp.Com

Question: Discuss About The Explaining Accounting Practices A Strategy? Answer: Introduction The managerial accounting process of standard costing and variance significantly helped in conducting an improved analysis of the performance of the entity. The variance analysis provided us with crucial insight regarding the various variable costs that can be reduced and for the purpose of alleviating the profits of the entity along with increasing its effectiveness and efficiency (Nimtrakoon Tayles, 2015). This also enabled the Marco Corporation to evaluate whether the need for change in the current procedures and systems is immediate or can be postponed for some more time. After doing the analysis the fact of significant variances in respect of variable costs came into light. This ensured that the entity or its management on its behalf would take the necessary steps in the near future based on the variances found in the results for the month of May. The first action would be to analyse the reasons behind the unfavourable variances found in the operations or specifically in the material, labour and overheads expenditure of the entity. Then, after analysing the reasons for the variances or deviations from the budgeted target necessary steps or changes in the procedures and the systems have to be made to ensure that the further occurrence of the same type of variances can be checked (Theriou Aggelidis, 2014). Strict actions would be taken against the employees if they are found guilty of negligence owing to which the entity had to bear the cost of variances. Reference Nimtrakoon, S., Tayles, M. (2015). Explaining management accounting practices and strategy in Thailand: A selection approach using cluster analysis.Journal of Accounting in Emerging Economies,5(3), 269-298. Theriou, G. N., Aggelidis, V. (2014). Management Accounting Systems, Top Management Team's Risk Characteristics and their Effect on Strategic Change.International Journal of Economics and Business Administration,2(2), 3-38.