Management Accounting Accounting Management Approach

Question: Discuss about the Management Accounting for Accounting Management Approach. Answer: Recommended technique: Total Quality Management (TQM): TQM is one of the most valuable, dynamic and comprehensive accounting approach that is used by the business firms for the overall success. In addition to this, it should also be noted down that, TQM is also employed as a strategic accounting technique that offers opportunities to the management accountants to bring continuous quality improvement practices and activities in a new innovative traditional manner. For instance, TQM is plays a key role in developing and creating new abilities and skills of management accountants (McWatters, and Zimmerman, 2015). Moreover, with the help of TQM, the accountants are able to take qualitative accounting/financial decisions for the overall success of their company by measuring non monetary and other aspects of their business such as: satisfaction of customers. For example, through TQM as an accounting approach, the accountants of Australian Pharmaceutical Industries (API) can satisfy the needs of key stakeholders by meeting the needs of customers. On the other hand, it is found that, TQM is also play a major role in bringing the development within the various functions and activities associated with the finance and accounting. For instance, by using TQM as accounting strategy, the management accountants can improve the financial situation of the company and improve their work performance on the regular basis (Drury, 2008). Reasons for Recommendation of Technique: The TQM approach/technique is recommend as one of the most effective and valuable method because by adopting this approach, the accountants of Australian Pharmaceutical Industries (API) can assume their role as leaders and satisfy organizational stakeholders. For example, the accountants would also be able to assume their roles and responsibilities of leaders in the process of implementation incessant improvements initiatives. For instance, the accountants would play supportive roles in enhancing the financial performance of the company. On the other hand, through TQM, the accountants of Australian Pharmaceutical Industries (API) can also convert cost accounting language to the customer language (Garrison, 2012). Moreover, TQM is also motivates and encourage the accountants to play key roles in the organizational strategic decision process effectively. It also develops skills, improve abilities of the accountants to enhance their knowledge in companys business operations and others important aspects of business. Furthermore, TQM would allow accountants to adopt innovative and dynamic tools in performing their key functions and roles. For example, with the help of TQM, the accountants can be able to produce customized financial and accounting reports on the basis of cost allocation formulas. At the same time, TQM would also provide strategic directions to the accountants about how to conduct accounting and financial functions more accurately by mainlining quality on the continuous basis. Hence, all these are the major regions that TQM approach is selected and recommended as accounting technique (Maher, Stickney and Weil, 2012). How the Technique will assist Management: The TQM as accounting technique would help the management of the Australian Pharmaceutical Industries (API) in different manner. For example, it would provide strategic directions to the management of the company about how to take specific decisions to improve organizational financial performance. In the same way, it would improve decision making abilities of the management. On the other hand, it would also suggest the management that how to bring continuous improvements and development within the current accounting/financial strategies, standards, principles and rules (Garrison, 2012). Furthermore, by using TQM, the management of the company can also identify and eliminate problems in the accounting processes and systems and take corrective actions to overcome upcoming issues or challenges in an effective and proper manner. For example, TQM would allow the management of the company to predict accounting and financial mistakes in advance. In the same way, through TQM, management can overcome the issues associated with the fraud and miss-presentation of financial information. Overall, it can be said that, the management of the organization would be able to improve economic strengths of the company through TQM (Shah, 2009). Potential Issues with Implementation and Integration into the MAS: A lot of issues or challenges can be faced by the Australian Pharmaceutical Industries (API) in the implementation and integration of TQM into the MAS. For example, the integration of TQM into the MAS would increase the operational costs of the company and may reduce the level of profit. Moreover, resistance of the workforce is another key issue that may also be faced by the company in the implementation of TQM into MAS. At the same time, it is also found that, this implementation may affect the current business strategies, processes, methods of doing business and create the situation of dissatisfaction within the organization. Moreover, the company may also face several security, and privacy issues. For case, there may be more chances that the hacker can use important information through MAS. So, it can be said that, there are several issues can be encountered by the organization (Adler, 2013). References Adler, R. (2013). Management Accounting. UK: Routledge. Drury, C. (2008). Management and Cost Accounting. USA: Cengage Learning EMEA. Garrison, (2012). Managerial Accounting 11E W/Dvd. USA: Tata McGraw-Hill Education. Maher, M.W., Stickney, C.P. and Weil, R.L. (2012). Managerial Accounting: An Introduction to Concepts, Methods and Uses. USA: Cengage Learning. McWatters, C.S and Zimmerman, J.L. (2015). Management Accounting in a Dynamic Environment. UK: Routledge. Shah, M. (2009). Management Accounting. USA: Ane Books Pvt Ltd.