According to a Houston Chronicle article by Grant Houston, strategic management accounting is a form of business inquiry that combines the accounting criteria of an organization with external factors that influence the organization, such as industry trends in costing, pricing, market share and resources. The goal of strategic management accounting is to provide companies with a comprehensive means to analyze future business decisions. It is more complex than management accounting.Continue Reading
Houston explains that a company's strategic management accounting program rests on three primary elements, which are quality, cost and time, or QCT. Each company's QCT results vary based on the needs of its customers and the changing demands in the market. For example, one company's customer base may value quality over cost and time, while another company's customer base may prioritize cost savings over quality and time. These results help to guide a company's strategic initiatives so that it is able to better serve its customers and differentiate itself from competitors.
Strategic management accounting also amalgamates data from technical, behavioral and cultural measurements relating to a company's specific industry. When a company is able to identify its core asset base, it can better determine where to place its efforts and invest in growth. Without knowing where to evolve and how to compete with industry rivals, a company risks wasting its resources, notes Houston.Learn more about Accounting
The main advantages of an accounting information system are the increased speed of processing the numbers, efficient organization, and classification and safety of inputted data. This contrasts the manual evaluation of information, which involves writing out the data by hand and doing time consuming calculations.Full Answer >
A line item budget is an accounting method that lists all of an organization's expenditures based on the department or cost center. Each department's expenditures are given a separate line on the budget. This method helps officers of a company or organization to determine the exact source of their expenses.Full Answer >
Examples of resources for free answers to questions about accounting include Accounting Coach and Accounting-World, as of 2016. These resources provide a database of common questions and answers regarding various aspects of accounting.Full Answer >
Factors that impact pricing decisions include internal factors like the marketing objectives for the organization, and external factors such as the nature of the market, competition and demand. Marketing will determine a strategy for the product, which greatly impacts the proposed pricing for a product.Full Answer >