Management Accounting Essay

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Technological Change
Technology has dramatically changed the way we live. Information technologies, transportation systems, food technology and medical and scientific discoveries affect the way we work, eat and play. For example, Internet. Many devices we use daily rely on micro-chips and software to operate correctly. Global positioning systems route you quickly to your destination. Companies can communicate internally with their members, suppliers and customers through devices such as the Internet, mobile phones and PDAs. Advanced technologies allow organizations to make better quality products more efficiently through automation and precise operations; to make firm’s products more reliable and safer; to make few mistakes, lower production costs significantly and to enable firms to deliver their products and services timely and reliably. These create customer value by taking higher quality products at lower prices in a more efficient way. As all the process can be done via Internet, and it will update the relevant company databases instantly. Manager can use this up-to-date information for planning purposes and monitoring the execution of their company’s strategy. This create organizational value which benefits received by various stakeholders from their investment in their firm. Globalization

Customer Preferences
Organizations must continually monitor technological change and global competition, but unless they identify and meet customer preferences. Firms fulfill customer desires is critical to the success of an organization to create customer value. Companies must continually seek to add value to customers by adapting to changing customer preferences. Value chain analysis is help to solve this problem. Value chain analysis is associated with both JIT and TQM. A typical value chain might be: Research and developmentDesign and engineeringProduction DistributionCustomer service

In addition, these activities are called value-added...
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