The paper 'Why Management Accounting Innovation Is One of the Core Themes Driving Modern Organizations" is a great example of a finance and accounting assignment. Managerial accounting innovation is an important aspect of any business; this is because it provides executives with information that is designed to support and enhance the decision-making process in organisations. This is important when organisations fight fierce competition that comes with new management techniques for the manager. Managerial accounting thus serves the purpose of transforming data into information that can be used to convey the meaning or use the same message in making important decisions for the company.
Effective managerial accounting will thus provide quality and high profile information to the relevant persons at the right time. How the role of a Management Accountant has been adequate in driving innovation? Managerial accounting is the most vital part in the management innovation and control processes which define the organization’ s objectives, it measures the organization’ s progress and rewards or punishments for those who underperform in the organisation. This means that managerial accounting is meant to respond to the existing and growing changes in the business world.
And if they fail to do this, it will negatively impact on the performance of the organisation. The managerial accounting aspect will thus introduce discipline in all arms of the firm, actions and reactions with regard to the events that organisations are engaged in. the changes in managerial accounting information will also include the productive and the unproductive elements of the system as well. This is capable of changing the management actions in a way that will be able to create a positive or negative decision with regard to the information contained in the data collected. It is true that Role involvement will affect innovativeness in terms of: knowledge about the appropriateness of innovations; In order to successfully innovate, Emsley (2005) suggests that the management accountant should be aware of innovation as well as be in a position to understand the appropriateness of this innovation to the business manager.
It is most likely that a management accountant with a business unit orientation will have the knowledge of the right kind of innovation to use due to the fact that they are always working hand in hand with the business unit manager.
Knowledge and appropriateness of innovation are usually characterised as being technical or administrative, however, when we look at managerial accounting per se, it is purely radical and very administrative. However, most innovations will involve technical and administrative elements and their implementation especially with regard to some of the innovation necessities. This calls for the adoption of other technical and administrative innovations. With this regard, the appropriateness of innovations will be viewed with the impact that it will have in being a global package with regard to a number of administrative and technical components.
In addition, having knowledge about the appropriateness of innovation will also result in the long-run implementation of the innovation after it has been put to use. Emsley (2005), adds that a successful organisational plan around innovation will require that the organisation takes control of the innovation process. And even though a lot of organisations have failed to transparently define the innovation process, Emsley (2005), suggests that the innovation process should that which is composed of generation and mobilization of the main idea.
There should also be screening and advocacy of this innovation, commercialization, experimentation, implementation and diffusion.
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