An Appraisal Of The Nature And Significance Of Management Accounting (A Case Study Of Dunlope Nigerian Plc)

An Appraisal Of The Nature And Significance Of Management Accounting (A Case Study Of Dunlope Nigerian Plc)

First Part

Introduction

1.1 Introduction To The Study

Management accounting is the development of information for company administrators and other insiders. This information is utilized by managers to gauge their progress toward their objectives and anticipate any potential problems. For instance, managers are interested in which products have the highest sales. Which are not selling well. Which items typically sell together? How is the inventory managed? How about money? Will the company have sufficient funds to meet its impending debt obligations? Accountants respond with budgets, variance reports, sensitivity analyses, revenue reports, cost projections, and even competitor analysis.When businesses consider how to expand their product and service offerings, managerial accountants assist in developing profit projections based on revenue and expense projections. In summary, managerial accounting has historically played a significant role in business control and performance evaluation.

Financial accounting offers information to external parties. Financial reports summarize the business as a whole, although they can be segmented and broken down by Business segments and regions. These reports are the quarterly and annual financial statements that publicly traded companies must submit with the Securities and Exchange Commission (SEC). The function of accounting departments within companies has changed over the past two decades. Instead of merely providing information to insiders and outsiders, accounting departments have begun transitioning into profit centers. Rather than merely reporting quarterly profits, accounting departments are tasked with increasing profits through the application of accounting methods. Various methods frequently result in varying levels of reportable profits.Profit reporting can therefore be both an art and a science. This procedure is known as earnings management. For instance, accountants may experience pressure to meet internal goals.Managers may wish to demonstrate to their employees and the board of directors that they have increased revenue and reduced expenses. The purpose of this research is to evaluate the nature and importance of management accounting through a case study of Dunlope Nigerian Plc.

1.2 Description Of The Problem

The inability of many organizations to afford the services of a MANAGEMENT ACCOUNTANT deprives them of the Datas and information necessary for making quality management decisions.This organization lacks the necessary accounting reports, including budgets, variance reports, sensitivity analyses, revenue reports, and cost projections, among others. Poor management decisions result in waste and improper use of resources, high cost expenditures, low revenue, and profit loss.Management accounting is the development of information for company administrators and other insiders. For example, managers want to know which products are selling well and which are not so well so that they can gauge their progress toward their objectives and identify any potential problems in advance. Which items typically sell together?, How is the inventory managed? How about money? Will the company have sufficient funds to meet its impending debt obligations?Budgets, variance reports, sensitivity analyses, revenue reports, cost projections, and break even analyses of competitors are used by accountants to answer these queries.When businesses consider how to expand their product and service offerings, managerial accountants assist in developing profit projections based on revenue and expense projections. In summary, managerial accounting has historically played a significant role in business control and performance evaluation. Therefore, the challenge of this study is to evaluate the character and significance of management accounting through a case study of DUNLOP PLC.

1.3 Purpose Of The Research

1 Determine the management accounting nature of Dunlop Nig plc

Determine the value of management accounting at Dunlop Nig Plc.

Identify the challenges of management in the twenty-first century.

1.4 Research Question

What is the essence of Dunlop Nig plc’s management accounting?

What impact does management accounting have on Dunlop Nig plc?

What are the challenges of management in the twenty-first century?

4 What impact does management accounting have on Dunlop Nig Plc’s management decisions?

1.5 Importance of the Research

The study will provide the principles and methodology for management accounting statement preparation. It shall express its significance and provide managers and accounting officers with information on the application of management accounting.

1.6 Radius Of The Examination

A case study of Dunlop Nig plc is utilized to evaluate the nature and significance of management accounting.

1.7 Definition Of Terms

Management accounting is the process of developing information for company managers and other stakeholders. For example, managers want to know which products are selling well and which are not so well so that they can gauge their progress toward their objectives and identify any potential problems in advance. Which items typically sell together? How is the inventory managed? How about money? Will the company have sufficient funds to meet its impending debt obligations?Accountants respond with budgets, variance reports, sensitivity analyses, revenue reports, cost projections, and even competitor analysis.When businesses consider how to expand their product and service offerings, managerial accountants assist in developing profit projections based on revenue and expense projections. In summary, managerial accounting has historically played a significant role in business control and performance evaluation.

Financial accounting provides outsiders with information.Financial reports summarize the business as a whole, including the income statement, balance sheet, and statement of cash flow, whereas management accounting reports may break down performance for managers by individual products or regions of the country.

Auditing is an independent examination and expression of opinion on the financial statement of a business by an appointed auditor pursuant to that appointment and in accordance with any applicable statutory requirement.

Internal auditors are responsible for overseeing the firm’s financial and operational procedures, verifying the accuracy of financial record keeping, implementing internal control enhancements to ensure compliance with accounting regulations, and detecting fraud.

External auditors are accountants from outside the organization who examine the firm’s financial statements and the procedures used to produce them. Their job is to attest to the veracity of the financial statement and that it accurately reflects the condition of the company.