Sustainability and Management Accounting

1731 Words7 Pages
Recently, demand for accountability in business has been growing in importance and generally, sustainability has become increasingly concerned with the performance indicators used by governments and corporates, current, past and potential internal and external stakeholders. Furthermore the use of management accounting both encouraged organizations to visualize their goals whilst allowing them to assess their efficiency and effectiveness. The use and sometimes abuse of its tools has further lead them to become powerful so that organizations must be concerned with. The aims of this essay are to examine the management accounting objectives and assess its level of fulfillment. Also, will discuss the notion of ethics and sustainability and their reflection over businesses, economy, environment and society. Management accounting and its objectives Management accounting is a process of measuring, analyzing and reporting financial & non-financial information within an organization to assist managers take better qualitative decisions regarding organization’s resources and to accomplish the company’s goals and creates competitive advantage (Horngren et. al., 2011). In order to help managers to take better decisions and to manage their resources, management accounting has distinctive process and techniques, which include systems to help applying the organizational strategy, process engineering and cost management, planning and control system. Clearly, management accounting derives its advantage from the flow of the organizational vision, mission and strategies. Also, its value created by facilitating performance and strategy evaluation and its related feedback for future improvement. In response to the highly competitive business environment, many organizations have applied one or more of the management accounting tools and techniques such as cost accounting in order to

More about Sustainability and Management Accounting

Open Document