Managerial Accounting Practise in Saudi Organizations Essay

managerial Accounting Practise in Saudi Organizations - Essay ExampleThe State and Extent of Using forward-looking Management Accounting Techniques In Particular in Making the Right Decisions Decision devising is considered to be an all inclusive and widespread process that consists of conglomerate activities such as identification of the business or the concerns, allocation of certain weights or ranks to the identified problem, evaluation and implementation of the alternative plans. Management business relationship on the other hand is related to the appropriate use of relevant information in order to assuage and direct managers to undertake informed business decisions trenchantly and efficiently. The most advantageous fact of management accounting practices is that is does not require conforming or following the national accounting standards which further gives a impropriety or room for the business people to adopt customized management accounting techniques that are most e ffective in terms of their business operations. For realizing the affectivity in the decision making process, organizations combine or merge the ripe quantitative and qualitative techniques. According to Johnson, The use of modern management practices has helped in focusing on the problem which inclines more towards how accounting information can be made more useful for decision making rather than how we could improve things we do . The recent developments in the modern management accounting techniques have enabled the managers to shambling sound decisions so that excessive costs incurred by firms could be pruned down and at the same time, the apprize of the products and services rendered could be enhanced. The extent to which the management accounting practices have been put into action is tremendous and quite a rigorous, especially in the past two decades. Lot many research work and in-depth study in various countries across the world have undertaken to find out the relevance and significance of the modern practices to various sectors in the economy. For instance, in a research conducted by Philip and Kerckhoffs Christian (2005), the significance of Activity Based cost (ABC) and throughput accounting (TA) was brought forward and was revealed that MAPs are more used as accounting tools to induce the technical insights from an accounting viewpoint. The research indicated the use of working-floor insights and production process data in the formulation of a companys income statements that are utmost essential for managerial decision making. When most of the countries have already adopted the MAPs, there are countries like Bangladesh which still need to incorporate the changes in the accounting practices. Bidhan has conducted atomic number 53 such study whereby it was found t modern techniques like Activity-Based Costing, Cost-Volume-Profit, Target Costing, and Just-in-Time (JIT) etc were not applied in the public and private sector manufacturing enterprise s but used by just a few transnational Corporations (MNC). (8) Most of the companies in Saudi were still found to use the conventional and traditional accounting practices. handed-down management accounting techniques are generally perceived by the Saudi manufacturing and service sector firms to be highly important and frequently used by the responding firms. As per Ei-Ebaishi, the managers rely less in similarity to