MAManagement Accounting 1- Assignment
1.(A)Why may financial information alone be insufficient for the ongoing informational needs of operators/workers, managers and executives?
Financial information’s are the measurement of the effectiveness and efficiency of operator’s actions, and it’s mainly for the use of external users. However financial information did not reflect the non-financial information such as performances of workers etc. But operators need direct measurement on variables of outputs and inputs resources so they can control the quality of their work. The variables include time requirement relevant process to produce the output. Hence it is important for the operators to enhance their quality, productivity, and time spending on their task. As a brief concluding, operators needs measurements of performance to achieve better efficiency and effectiveness of their existing operations, which financial information did not provides. For managers, financial information alone is insufficient for decision makings because it cannot assists in controlling and directing the operational activities of the firm manufacturing process. Controlling and processing the operational activities will ensure the long run and profitability of a firm. Also, budgeting and planning the work of a firm will motivate the managers to direct their subordinates for improvement of task. The manager of a firm must assure the appropriate use of its resource. . In contrast to financial information, the manager of an entity also need primarily looking forward information based on abstraction to support their makings of decisions.. It is to ensure that the resource of the company is fully utilized, and reduce the wastage to minimum level. Nowadays, competition among industries has reached an intensive stage, it’s crucial for manager to make effective decisions to survive the competition. As for executives, non financial information such as market information is important for retention...
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