MANAGERIAL UTILITY OF ACCOUNTING IN A PERIOD OF ADJUSTMENT.
The article presents answer to the question how the accounting officer can best contribute to effective management. The controller's department is the pivotal point, to which is forwarded the significant and vital information of business activity. It is his responsibility to analyze and interpret the performance of other branches of business activities and submit his conclusions through the medium of financial reports and statements It is in this area that the controller can make his greatest contribution to effective business management. Management should be supplied with continuing reports that spell out the cost of distribution by product, territory, mode of transportation and dollar value of order. The credit and collection phase of business, which in many instances is a function of the controller's department, must be assiduously watched. In the area of budgeting, accountants can and must make a vital contribution in the planning and control function of business management. The preparation and interpretation of budgets, which in essence are a set of management plans assembled in terms of transactions to be effected and aims to be accomplished, constitute one of the most significant contributions that dynamic accounting can make to effective business administration.
- DOI
- 10.2308/tar-7110281
- Volume
- 29 (3)
- Pages
- 369-372
- Language
- en
- Export
- BibTeX
- Sources
- openalex crossref