1.0 Question 1
To : James Moody
Date : 25th November 2015
From : Chew Sin Hong
Title : i) The Changes in the Business Environment that have contributed to the growth and importance of Management Accounting. ii) Role of Management Accountant play in a company`s value chain function.
Management accounting nowadays are growing and it is becoming more and more important in the current trend. Management accounting is a process of measurement, accumulation, identification, preparation, analysis, communication and also interpretation of all the information of finance used by the management to evaluate, control and plan an organization with addition to assure the correct use and responsibility for the resource that are available. Management accounting likewise contains the arrangement of money related reports for non-administration groups, for example, shareholders, regulatory agency, creditor and the authorities for the tax (Ed, 2008). There are few factors that lead to the importance and growth of the management accounting.
First of all are the globalization. Globalization is important and also a big role for the organization to sustain and survive in the current trend. This globalization are one of the factor that cause management accounting to be important because of the increasing of the communication and also the advancement of the transportation which allow company to penetrate into the market that have more potential customer has been widely expand. Therefore company product are able to move around the world which going towards the international market and will face an intensive competition with more competitor in the international market which mean that in order to gain competitive advantage in the global market, the management accounting plays an important role to provide all the information of the cost and also analyse the country, segment and also