Management in Australia and New Zealand bank

Document Type:Thesis

Subject Area:Accounting

Document 1

Management accounting in many organizations plays a very crucial role in the running of these firms by the management. Majority of the companies from across all the sectors that make up the Australian economy do practice management accounting. Many industries such as the Banking sector of Australia plays a very important function in the Australian management accounting. In addition to the traditional financial accounting, these banks do offer, they also practice managerial accounting especially budgeting. All the activities that this bank gets involved in, they need to be planned and budgeted for so that they can be carried in the most effective and efficient manner which allows them to be performed without delay. ANZ despite being considered to be the global champion in real-time in management solutions such as budgeting.

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This makes ANZ to be recognized as the real leader in budgeting thus making them to be nominated and winning the top industry prize for budgeting innovation as well as program excellence over the years it has operated. According to the economic survey that was conducted by the market regulator, the operating environment of the budgeting technology in management remains bullish as well as opportunistic due to the fact that technology remains the most dynamic sector due to the continuous innovations making the world a real global village. With the invention and introduction of the Artificial Intelligence (AI) and Internet of Things (IoT) they are set to revolutionize every aspect of doing things in day to day engagements. The report also has looked at the various types of budgeting such as; sales budgeting, purchase budget, master budget, production plan budgeting as well planning that is needed in each type of budgeting.

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It is said that any business organization that carry out business activities without any kind of financial goals usually find it difficult and same time challenging in making proper decisions that will make the company to alter the way it operates. Business firms that operates with goals that are specific in the form of a budget is in a better control position since this one will help the firm to take control of the its cost by setting clear instruction on how to spend the money since they know that all the costs will be related with the amount that was budgeted. If costs surpass the cost that was budgeted, and description of the variance will be required to be given.

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A budget that is exceeded regularly usually tend to be helpful as it motivates the employee thus helping in setting of the budget. Any form of a budget that is complete, it is referred by the management of the firm as the master budget. This is so because, it is evidently related to the wider system that is used in planning as well as a control in the company. At any given time, planning will encompass the requirement of basis of the objectives that gives it direction in terms of it operation standings. This will involve; a. Setting of the objectives b. Making specification of the goals c. Therefore, this study report will cover the evolution of the management accounting and same time look at the changing responsibility of the management accountants that is in corresponding with the strategic management accounting developments.

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Characteristics of a Good Budget A good budget possesses a number of features. These features enables the budget to serve the business organization so as to ensure the targets and also the business objectives are meet with a counterchecking tool to control and monitor. These features of a good Budgeting are; i. Budgets can be articulated for the entire firm or for the sub units. b. Recording of the actual figures c. Comparing the budgeted figures against the actual figures with the aim of revising the performances that is exhibited by the different cost centers. d. Taking a remedial action in case the actual performance is a lesser amount compared to the budgeted standards. Budgeting can be ineffective and same time expensive, that is, it is unnecessary comprehensive and complex.

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