BFCC Analysis and Conclusion Section Research Paper

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Prepare the Analysis Section:

1. Provide a summary stating the findings of your research from the literature review for each research question:

    a. The summary should provide an analysis, of the literature review research findings, to your individual research questions. DO NOT DRAW CONCLUSIONS FROM YOUR RESEARCH - simply report the findings.  

    b. Create brief Level Two Headings based on your research questions to organize your analysis section.  Do not use the entire research question as a heading – but rather create a descriptive word or two or three from the research question as the level two heading.
 

    c.   Please do NOT use direct quotations!  This section requires critical thinking and therefore the analysis should be stated in your own words with appropriate use of in-text citations and page numbers (when summarizing or paraphrasing specific information).  

2. The draft Data Analysis Section should be 3 to 4 pages long, double-spaced using proper APA formatting including in-text citations.  Please remember to use in-text citations and page citation numbers. Please also remember that this is Not a conclusion section – simply report the findings for each research question as provided in your Literature Review section.

Prepare the Conclusion Section:
1. Discuss whether or not your research questions were supported/answered and discuss why they were or were not supported/answered in detail. Compare similarities and/or differences between various research articles if appropriate.  

Remember that proper APA      formatted in-text citations, including page numbers, are      appropriate in this section. 

Use Level Two Headings to identify each      research question (brief wording of each research question as a      heading).  

Provide a summary of the      information in sufficient detail to justify your conclusion(s) for each      research question

2. Add a Level Two Heading section with the following heading “Research Recommendations” and discuss any recommendations from your research which will benefit scholars and practitioners in their work.
3. Add a Level Two Heading section with the following heading that states any “Limitations of Research” and discuss how your research was limited and address any alternative explanations of the results.
4. Add a Level Two Heading section with the following heading that discusses the “Managerial Implications” and discuss why readers should read your findings and how it is unique and therefore adds to the body of knowledge.

5. The Conclusion section should be three (3) to four (4) pages long, double-spaced, using proper APA formatting including in-text citations where appropriate.
6. Please DO NOT provide direct quotes or tables or lists of items as they are not necessary in the Conclusion section. 

Explanation & Answer length: 9 Pages

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The Role of Managerial Accountants in Strategic Planning and Budgeting Assignment – Roles of Managerial Accountants in Strategic Planning and Budgeting The Role of Managerial Accountants in Strategic Planning and Budgeting Literature Review Managerial accounting is simply the provision of financial information to the internal company users. It is the company's internal accounts system that provides users with financial and non-financial information that is designed to help managers make sound business decisions. Managerial accountants play a key role in ensuring that an organization operates within its budget and all expenditure is strategically allocated. They record financial information used by the organization's management team to aid in decision making and to develop budgets. They do this by directing internal financial processes of the organization, conducting regular audits of the business, monitoring the spent, costs, sales, and budgeting, and helping the organizational leadership in making financial decisions. Managers depend greatly on the information provided by the managerial accountants to develop effective business strategies, therefore, managerial accountants carry out very critical roles in the organization that directly affect sales, costs, and ultimately the profitability of the organization. According to Mowen, et al 2013, Managerial accounting is bound by three broad principles; a) Provide information for planning organizational actions. b) Provide information for controlling organizational actions. c) Provide information that helps in making effective decisions. d) Roles of Managerial Accountants in Strategic Planning and Budgeting Provide information for planning organizational actions. According to Cokins (2013), the business competition nowadays has expanded following how technology has developed throughout time. Under this, the managerial accountant’s task and scope of work has been more complex and expanded. They are the people behind the company’s The Role of Managerial Accountants in Strategic Planning and Budgeting success (Brands, 2015). Managerial accountant, a personal task to identify, analyze, interpret and communicate and give information or data to the managers to help in partaking the decisionmaking (Tuarob, 2013). In layperson’s terms, they are not the one who decides for the company, perhaps they are the one who can give the best advice for the good of the company. Managerial accounting provides information for planning organizational actions which is essentially the process of formulating and adopting of action plans that are geared towards achieving a certain organizational objective. Management accountants set milestones or objectives for the firm and come up with action plans on how to achieve those objectives. (Mowen, et al 2013) For instance, a company may decide to increase their sales by trying to venture into new markets or by increasing the variety of products that they offer. The business environment in recent times has become quite volatile and very unpredictable, in turn, business management has increased in complexity. Increased competition has become the major downfall of the majority of small-scale businesses. In such an environment, strategic planning that is focused on enhancing business efficacy is essential (Porter, 1985). Strategic planning process Pearce et al., 1987 opined that strategic planning literature effectively predicts that using a strategic planning process has positive effects on the profitability of an organization and the positive effect has been the main goal of strategic planning since at least the 1960s. This theory however has been disputed by more recent studies by. According to Brock and Barry. (2003), the theory, discrepancies arise from the fact that, there may arise some inconsistencies in implementing the strategic action plans, contextual influences of the actions may be ignored and the measuring techniques may be invalid. Management accountants therefore face an uphill task to ensure that they religiously evaluate their action plans to ensure they are carried out The Role of Managerial Accountants in Strategic Planning and Budgeting appropriately. A study by Rogers and Bamford. (2002), brought attention to the business needs of the future. The study suggests that the key issue for organizations of the future will be information management. Therefore, management accountants will need to emphasize on the kind of information that will be used to decide the company's strategic orientation. Strategic planning and budgeting Having a strategic plan spanning for at least one financial year of the business is essential in informing the management on the necessary budgetary allocations. Management accountants are therefore expected to evaluate different cost information in order to formulate an effective plan for the organization (Mowen, et al 2013). When everything goes according to plan then the company may operate within its budget. However, if the organization finds itself operating in the midst of disruptive forces that may require strategic changes to its budget, then the management accounting team has to pass the information from the operational unit to executives so that the strategy can be adjusted (Toivonen, M. 2020). Planning support is considered as one of the most essential jobs of a manager. Forecasts give clear information on the strategy that is being implemented in the volatile environment that is affecting the organization (Palermo, 2018). Margin Analysis. The analysis is more concerned on the increase of advantages and benefits of optimizing production (Brands, 2015). According to Investopedia, Marginal analysis examines the benefits of adding production in an activity compared to the costs. According to Helle, (2017). It is the analysis that is very simple and fundamental. Constraint Analysis. According to Hilyard (2016), the analysis focuses on bottlenecks or jam-up in an organization or a company . With the constraint and problem given by the The Role of Managerial Accountants in Strategic Planning and Budgeting bottlenecks in the company's progression output, it can affect the efficiency of a company's ability in revenues and profits (Tuarob, 2013).. Capital Budgeting. The accountant uses the technique to achieve and set decisions for the company I term of the capital expenditure (Brands, 2015). The crucial part is how will to spend the money, from the information and calculation of net present value and internal rate of return (Hilyard, 2016). Inventory valuation and product costing. The principal purpose of inventory valuation is to identify and analyze the actual costs of the company corresponding to the products and inventory (Taleizadeh et al., 2015). It has a big role in checking if the budget and the actual products supply and inventory is sufficient and data are correct (Hilyard, 2016). Trend analysis and forecasting. In particular, it primarily applies this technique in identifying the patterns and trends of product cost, and also to determine the variances and how it affects the trends of the company and also the decisions (Tuarob, 2013). Provide information for controlling organizational actions Planning is only half of what constitutes effective management accounting (mowen et al, 2013). Once a plan is formulated and is ready for implementation, it must be implemented by all operational units and be supervised by the management of the organization to ensure the plan is carried out as expected. This process by the management of monitoring implementation of the strategic plan and making necessary adjustments to it is the one referred to as controlling (mowen et al, 2013). According to a study conducted in 2004 in Germany on planning and control, it was realized that small and medium enterprises rarely use these tools in their operation The Role of Managerial Accountants in Strategic Planning and Budgeting (Kukec, 2012). Therefore, a lot of their operations are carried out on either a fixed budget that carries forward year after year or a financial plan that has been in existence for a long period of time. Kukec, (2012) also assessed that a company that uses appropriate planning and control tools that assist in, preparation of essential information for decision making, management of risks, and insurance of liquidity is more likely to get a better rating from commercial banks and therefore, the company has better access to loan facilities. For a commercial bank to process a loan, they usually require the business plan to be presented so as to determine the creditworthiness of the business. The Plan needs to include a proper plan and a control strategy that will help measure the progress of the overall plan. Planning and control work hand in hand in ensuring the overall strategy implementation. Provide information that helps in making effective decisions. Mowen et al, (2013) describe decision making as the process of choosing between competing ideas. This decision is carried out by the manager and is in line with planning and controlling. This is because in order to have an effective plan in place and be able to control its implementation, the managers will have to choose between two or more competing ideas. In order to support effective decision making, management accountants put a lot of emphasis on technology. Moorthy et al, (2012) expressed the importance of Information Technology (IT) in management accounting. A lot of emphases has been put on educating management accountants on information systems as well as increase their knowledge in IT. The literature also found that IT will help simplify calculations and make the presentation of information easier and more organized. Relevant decision analysis represents one of the most exciting and widely applicable managerial accounting tools (Mowen et al, 2013). When Navistar, Inc a manufacturer of The Role of Managerial Accountants in Strategic Planning and Budgeting components and electronics for a wide range of vehicles is a good example of a company that had to employ relevant decision analysis. At some point, the company was faced with a critical decision. When faced with long term growth issues, Navistar had to decide whether to produce the extra axles required in-house or outsource the service to an outside company. In the end, the relevant decision analysis helped the company to decide to outsource their extra axle production which led to the company saving costs of about 3 million per year (Mowen et al, 2013). Roles of Managerial Accountants in Strategic Planning and Budgeting Forecasting and planning about the future plans and budgets. Information forecasted by managerial accountants is used by managers to forecast and plan about their companies. Managers will always be interested in knowing what products are best to manufacture in the actual time and also where they should focus their effort in the future. Managers use the information to lay down strategies and budgets for the future hence their ability to forecast depends on the budgets developed by the managerial accountants. Establishing an organizational framework. Managerial accountants have a role of organizing and assigning responsibility to people working in an organization for achieving the laid in strategic plan and budgeting. Each manager’s responsibility and lines of authority should be known. Various departments and units are interrelated in the hierarchy informal communication where information and instructions are passed downwards from lower management to top management level. With this, managerial accountants will be able to provide reports and necessary information to regulate and adjust operations to the respective managers. For instance, the reports given by managerial accountants prepared on production lines help managers to decide whether to add or eliminate a product line considering the current product mix. The Role of Managerial Accountants in Strategic Planning and Budgeting Managerial accountants use the methodology of process costing to trace and accumulate direct costs and allocate costs of a manufacturing process unit. Each unit in the organization is assigned an average cost. Managerial accountants in big organizations use this method to assign costs to units of production due to large quantities of homogenous products. This method ascertains the cost of a product at each process or stage of manufacture. With this, the managers in an organization are able to understand costs and how to control them since they will be able to have a clear glimpse of where their money is being spent in the production and distribution process. The managerial accountants also hold the role of deciding capital investment in an organization. They identify the need for a capital investment, analyze courses of action to meet that certain need, prepare reports for managers, choose the best alternative and divide funds among competing needs. The managers in an organization are able to choose the best alternative according to the organization's strategies and budgets. Managerial accountants also play the role of controlling in an organization. They monitor, measure, evaluate, and correct actual results to ensure that an organization's strategic plans and budgets are achieved. It is achieved by the use of feedback which is the information used to correct steps taken to implement a plan. Feedback allows the managers to decide to let the operations and activity continue as they are. Managerial accountants produce performance and control reports which highlight variances between actual and budgeted performances. If the difference between budgeted and actual performance is significant, a manager will be able to determine what is wrong and possibly decide which unit really needs help. Another major role of managerial accountants is decision making which involves choosing among competing alternatives. Decision making is inherent in planning, organizing, The Role of Managerial Accountants in Strategic Planning and Budgeting and controlling. Planning goes hand in hand with decision making where a manager chooses among competing objectives. Upon planning to organize, managerial accountants decide on every day to day operations taking place in an organization. For a managerial accountant to control they have to make wise decisions on the variance that is worth investigating. For a wise decision, the managerial accountants follow five major steps to decision making. The first of all identify a problem requiring a managerial action and then they specify the objective or goal to be achieved. They then list the possible alternative courses of action gathering information about the consequences of each and every alternative. Lastly, the managerial accountants make the decision by selecting one of the alternatives. The alternative chosen will help achieve an objective or goal of an organization and the consequences should be bearable to the organization. The managerial accountants make a decision relying on whether the alternative will make an organization realize profits. Managerial accounting takes a huge part in a company's budgeting process and facilitates this matter. Based on the book, Role of Management Accounting in Planning Process by (Mayeli, 2016), the accountant takes as a special and progressive asset of a company. Their decision-wise advice to the managers in dealing with the company’s budget was based on the data they gathered to the company’s latest or previous information about their inventory if the previous budget and plan was able to be accomplished throughout the given time, specifically the output and performance to the company (Taleizadeh et al., 2015). Through the knowledge of the managerial accountant, they know what the best way in will be making budget (Cokins, 2013. They know the system, particularly the income flows, the production costs, the demand and supply of production, the areas where the possible increase of budget is needed (Hilyard, 2016). The Role of Managerial Accountants in Strategic Planning and Budgeting The Role of Managerial Accountant in Business The role of management account is to give managers operational and financial accounting information that will help in partaking decisions (Brands, 2015). Management accountants serve as “taking part in strategic cost management for achieving long-term goals; implementing management and operational control for corporate performance measurement; planning for internal cost activity; and preparing financial statements “,(Brands, 2015). To achieve the role, the tools (analytic tool) used by the accountant upgrades to conduct prescriptive analysis to make a high-value decision (Tuarob, 2013). To take as an example, an optimization model can help a managerial accountant in a manufacturing company in picking the right raw material for vendors that could reduce cost and boost revenue (Taleizadeh et al., 2015). \ The Role of Managerial Accountants in Strategic Planning and Budgeting References Mowen, m., Hansen, d., &heitger, d. (2013). Cornerstones of managerial accounting. Nelson education. Porter. (1985). Competitive advantage: creating and sustaining superior performance. New York: Free Brock. DM., Barry. D., (2003). What if planning were really strategic? Exploring the strategy-planning relationship in multinationals. Int Bus Rev 2003;23:543-61. Rogers. PR., Bamford. CE., (2002). Information planning process and strategic orientation: the importance of fit in high-performing organization. J Bus Res 2002;55:205-15 Toivonen, M. (2020). Exploring Virtual Planning Talk. Case Study: Budgeting Under Remote Work and COVID-19 in Three Global Manufacturing Organizations. Arend, Richard J., Zhao, Y. L., Song, M., & Im, S. (2017). Strategic planning as a complex and enabling managerial tool. Strategic Management Journal, 38(8), 1741-1752. Palermo, T. (2018).Accounts of the future:a multiple-case study of scenarios in planning and management control processes. Qualitative research in accounting & management, pp. 15(1), 2-23 Kukec, S. K. (2012) the application of management accounting (controlling) instruments in small and medium size enterprises in Nord-Western Croatia Helle, L. (2017). Prospects and Pitfalls in Combining Eye-Tracking Data and Verbal Reports. Frontline Learning Research, 5(3), pp. 81–93. doi: 10.14786/flr.v5i3.254 The Role of Managerial Accountants in Strategic Planning and Budgeting Gail Hilyard (2016), “Strategic Planning and Budgeting”, http://dx.doi.org/10.5038/ 9780977674435.ch5 in G. Coulombe, M. O’Neill, M. Schuckers (Eds.) A Handbook for Directors of Quantitative and Mathematical Support Centers, Neck Quill Press, http://scholarcommons.usf.edu/qmasc_handbook. Cokins, G., 2013. Top 7 trends in management accounting. Strateg. Financ. 95 (6), 21– 30. Taleizadeh, A.A., Noori-daryan, M., Cárdenas-Barrón, L.E., 2015. Joint optimization of price, replenishment frequency, replenishment cycle and production rate in vendor managed inventory system with deteriorating items. Int. J. Prod. Econ. 159, 285–295. Tuarob, S., Tucker, Conrad S., 2013. Fad or here to stay: Predicting product market adoption and longevity using large scale, social media data. In: ASME 2013 International Design Engineering Technical Conferences and Computers and Information in Engineering Conference. American Society of Mechanical Engineers (pp. V02BT02A012-V02BT02A012). Read, S. J. and Miller, L. C. (1995). Stories are fundamental to meaning and memory: For social creatures could it be otherwise?, In Wyer, R. S. J. and Srull, T. K. (eds) Knowledge and Memory: the Real Story: Advances in Social Cognition, Volume VIII (Advances in Social Cognition Series). 1st edn. New York: Lawrence Erlbaum, pp. 139–152 Moorthy, M. K., Voon, O. O., Samsuri, C. A. S. B., Gopalan, M., & Yew, K. T. (20...
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Explanation & Answer

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Running head: ANALYSIS AND CONCLUSION SECTION

Analysis and Conclusion Section
Student’s Name
Institution Affiliation

1

ANALYSIS AND CONCLUSION SECTION

2

Analysis and Conclusion Section
Analysis Section
Organization control and decision
According to Mowen, Hansen, & Heitger (2013), decision-making refers to the procedure of
choosing between competing philosophies. The managers are the ones to make these decisions that
are in line with planning and controlling (Mowen, Hansen, & Heitger, 2013). For instance, creating
an effective plan in place and overseeing its implementation requires the managers to choose
between two or more competing ideas (Mowen, Hansen, & Heitger, 2013). For an organization to
experience effective decision-making, management accountants should emphasize much on
technology. Planning goes hand in hand with decision making, where a manager chooses among
competing objectives (Mowen, Hansen, & Heitger, 2013). Upon planning to organize, managerial
accountants decide on every day-to-day operation in an organization. For a managerial accountant
to control, they have to make wise decisions on the variance worth investigating (Mowen, Hansen,
& Heitger, 2013). For a wise decision, the managerial accountants follow five major steps to
decision making. First of all, identify a problem requiring administrative action, and then they
specify the objective or goal to be achieved (Mowen, Hansen, & Heitger, 2013). Managers then
list the possible alternative courses of action, gathering information about the consequences of
every alternative. Lastly, the managerial accountants decide by selecting one of the options
(Mowen, Hansen, & Heitger, 2013). The choice chosen will help achieve an organization's
objective or goal, and the consequences should be bearable to the organization (Mowen, Hansen,
& Heitger, 2013). The managerial accountants make a decision relying on whether the alternative
will make an organization realize profits.

ANALYSIS AND CONCLUSION SECTION

3

The most practical and exciting managerial accounting tool is Relevant decision analysis. The
company that has widely put relevant decision analysis tools into use is Navistar, Inc., a
manufacturer of components and electronics for many vehicles (Mowen, Hansen, & Heitger,
2013). The company applied the instrument since, at some point, it was faced with an important
decision-making exercise (Mowen, Hansen, & Heitger, 2013). When faced with long-term growth
issues, Navistar had to decide whether to produce the extra axles required in-house or outsource
the service to an outside company (Mowen, Hansen, & Heitger, 2013). In the end, the relevant
decision analysis helped the company to decide to outsource their extra axle production, which led
to the company saving costs of about 3 million per year. Therefore, with a proper application of
the relevant decision analysis tool, the company can profit, enhance better business-oriented
decisions, and promote its success.
Besides, managerial accountants play the role of controlling an organization. Managerial
accountants monitor, measure, evaluate, and correct actual results to ensure that an organization
achieves its strategic plans and budgets (Mowen, Hansen, & Heitger, 2013). The business achieves
its strategic budget and goals by using feedback, which is the correct step to implement a plan
(Mowen, Hansen, & Heitger,...


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