The paper “ Social Implications of the Planning Function of Management Accounting” is an exciting variant of the literature review on finance & accounting. Planning is a very aspect of management accounting. This is because it helps address the important activities of the organization against the prospected cash inflows that will help facilitate the different operations of an organization. It is believed that planning in management accounting is well achieved through budgeting and forecasting. When undertaking planning in management accounting, different factors are taken into account. This is to ensure that the interests of various stakeholders are met.
One important aspect that is emerging as a necessity and an inevitable element in planning under management accounting is the social aspect. The social aspect of the business according to Scapens (2006), takes into account the fact that activities of the business affect the general society through the products and services they make available apart from impacting the environment upon which the business operates. In this regard, therefore, social implications are a must consider when undertaking planning in a management account. In this analysis, the attention will be about social implications and how they relate to the planning function of management accounting.
The analysis will involve the use of examples from different companies and governments. The ultimate objective will be to try and demonstrate how social implications influence the planning function of management accounting. Social implications and how they impact the planning function of management accountingAccording to Hopper & Major (2006), responsible businesses always have the attributes that qualify them to be called responsible citizens. This is a behavior that can be noticed from the way an organization carries out its operations.
In simple terms, an organization is considered a responsible citizen if it is able to be ethical in its operations by doing what is moral and that pays due regard to the social environment in which it operates.
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