Question

The following quotation is from an address made by an officer of the British Motor Company: We can all, I think, take pride in the way cost accounting has kept pace with business development in this country. Tremendous strides have been made during the last quarter of a century, and I’m sure that much more progress will be made in the future. In fact, progress will have to be made if we are to keep the science of management accounting abreast of the times. The whole of industry is now operating on a different level than we have known before— a higher plateau, on which management accounting appears in a new light and becomes more and more significant as a factor in business management. Required 1. What do you think is meant by the statement that “the whole of industry is now operating on a different level than we have known before— a higher plateau . . .”?

Answer 1

The Statement signifies the progress of industry and management development through the implementation of the “science of management accounting”.

The industry has been making a great progress in controlling costs and applying the management accounting while planning and making day-to-day and short term decisions towards the company’s operations.

The management accounting systems is a process of managing the management reports and accounts that allows the use of financial and statistical information/data more accurately and timely manner to have perfection in management decision-making and controls.

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