Management Accounting Essay Example | Topics and Well Written Essays - 1000 words - 8

Management Accounting - Essay Example This affects the costs and consequently affects the profits. Therefore, the company should use ABC costing method in order to obtain the correct overhead costs for products XYI, YZT and ABW. This is because ABC takes into account more than one cost driver into account. It is more accurate since it assigns costs to products and traces all activities and assigns them to products by using multiple cost drivers. ABC (activity based costing) is the costing method that is currently trending in the world. It has received credit for correcting deficiencies that existed in the traditional system. It is seen as the best costing method available for managers that operate various departments since they are able to assign costs to their products more accurately. However, ABC has received a lot of criticism due to its failures experienced in large operations. Managers of these large firms have termed it difficult to implement and maintain. Activity based costing does not offer the managers with accurate and timely information for decision-making. Activity based cost systems that are used in large-operational firms have proved to provide managers with out-of-date and inaccurate information. This is due to the huge amount of data to be collected. In addition, there is delay in the data to be collected. For instance, in a larger firm, it will require about 110 departments to submit their reports periodically. This makes the process time-consuming since it will take time for the system to calculate the costs for its numerous activities. The time-consuming process has resulted to the companies doing away with the ABC or ceasing to update their systems. This leads to out-of-date and inaccurate information provided to the managers by the ABC systems (Kaplan and Anderson, 2014). Universally, ABC has received resistance. This is evidenced by the annual survey carried out that ranked ABC position 2 after median. This has led to some companies abandoning ABC or failing to adopt

Globalisation Essay Example | Topics and Well Written Essays - 1000 words - 5

Globalisation - Essay Example The terms became prominent during the 1990s with the end of the Soviet Union Cold war. This is a major change which is steady and is one which includes complete integration of various countries. Globalisation refers to the interaction among different countries in order to work together to develop the global economy. Here there is generally an integration of economies and societies across the world. Globalisation is an opportunity that opens us many different areas for more interaction among people across the world (Kose, 2003). In terms of social as well as business activities, globalisation opens up opportunities to allow better communication and interaction without the issue of locations or borders. Stephen Gill explains globalisation to be a method which helps in reducing the costs by means of transaction and Trans – border movements of goods as well as capital and other factors of production. Guy Brianbant has however explained globalisation to be a process which includes a number of different factors like the improvement of communication, financial markets, and also internationalisation of the companies and growth of the multinational companies along with better mobility of people and factors like capital, data, goods and ideas. He has however also taken into account the negative aspects of globalisation i.e. higher mobility of infections, diseases and pollution (Mooney & Evans, 2007). This provides an overall and well rounded explanation of the process of globalisation and takes into account all perspectives of globalisation. Globalisation as has been discussed has impacted almost every country in the world, either positively or negatively. Here in the case of UAE, the country has been of interest and the collaboration between the country and other international locations has played a major role in the development of the country (Patapan, 2007). The Government of