The role of management accountant Essay

The eurotunnel, the company that has been experiencing financial concerns was lately suspended through the London stock market after screwing up to meet the deadline for filing the account. They’ve been experiencing economic problems and it almost this past year when they had written off 3 billion sterling pounds. This business was active in the construction of underground tunnels connecting Uk and France. The British railway which has been facing numerous concerns from misappropriation of cash to poor performance acquired a live line together with the entry of the eurotunnel. The situation with the eurotunnel although how expensive have been said was rising of risks and there were more risks above generalisation and gratification.

Since the structure of the pound underground canal there has been poor performance and poor output on section of the company. There have been lack of efficiency, innovation and cost slicing strategies which will lead the corporation to superb heights. The management accountant played an important role in the success with the construction from the tunnel.

The roles this individual played incorporate; When environment the prices to get the products to get sold, the system per expense is considered. With regards to the market the unit selling price will be set over a unit price. However , in the event faced with stiff competition, the system price could be set at the break even point or slightly higher the break even level.

At that creation, the company will never be making any profit or losses. (Ask, U, Ax, C. and Johnson’s, 1996). In the case of Eurotunnel he participated in calculating the costs to become incurred and the breakeven point for the project. He also combined with finance manager estimated the future benefits that could accrue from the project. The management documentalist assisted in ensuring that wastages and loss were avoided, this is because of need for the business to have functional control. That wastage which cannot be attributed to any device of production were blend and re-calculated for the importance of one device was done by management documentalist.

The company experienced good planning and decision making process. They have budgets which are annual programs. They have capital investment ideas and other ideal plans.

Ahead of taking any decision, the organization took into mind budget ideas or five year plans. The budget intended for the company included the day to day functions of the business in terms of financial situation and prediction. The budget is usually short term but will have long term results on the permanent sustainability from the company. All this was the work of the supervision accountant For just about any company to attain production especially a company facing a competition by giants will likely need to strategically control and screen the overall performance of each device or cost centres. This company left the game to the management accountant.

He monitored operations through the use of price centres that they maintained. They may have monitored expense elements just like direct materials, variable expenses, fixed expenditure, direct pay and other costs. In acquiring form for a period which is normally every day, and by the end of the day the management curator produces information showing the charge incurred in production and just how much is due to each device (Ask, U, Ax, C. and Johnson’s 1996); The budgetary control of eurotunnel altered the behaviour of staff and their services delivery. While using method of cost cutting, the employees felt which the method of expense cutting was meant to lessen some of them from their jobs. Some employees ignored, others went work gradual.

Employees’ behavior in any business is paramount to the achievement of the company. With the latest huge financial obligations and a talk of cost reduction, employees have experienced demotivated as some of them believe they will be retrenched. The planning of the price range by the supervision accountant showing cost slashes that were needed led to persons having protecting behaviours. Others felt frustrated, some of the workers became aggressive, others started to be rational while some withdrew being a sign of giving up.

This kind of shows that this prepared by eurotunnel management scrivener was not satisfactory by the staff as it was seen as a way to kick these people out of their jobs. Behavior determines the motivation employees have and motivation is definitely measured by rewards provided by the company. Functionality measurement is essential in all agencies because the companies need to confirm the validity of the collection methods; additionally they need to do performance measurement to be able to improve output of the corporation. In the case of eurotunnel, performance measurement is vital so as to see the earnings and to decide whether it is feasible to continue auto financing the company. It also measured the potency of the administration of eurotunnel including the managing accountant.

Just as much as this may seem to be an important and key facet of management, continue to it has a many more difficulties associated with it. Some of the main factors that may make performance dimension to be more challenging are the dimension problems that produce it difficult the supervisors (those in control of the functionality measurement) to see the benjamin or subordinates that they are under the average criteria. In order for eurotunnel to do overall performance measurement very well, then they will need to carefully examine the job, methodically and medically, in order to decide the nature and characteristics of the job, knowledge, skills and experience required for the effective performance from the job. They must collect all the vital information related to the task.

They should then simply look at the certain individual responsibilities that comprise the job and qualifications important to do the job. This can be called job analysis that requires determining this content of the job in terms of the particular worker is definitely expected to carry out, methods and techniques used, and lastly, situations and expertise required for the work. Eurotunnel will performance measurement in order to determine whether a particular job is done according to the essential standards. It also helps the corporation to improve effectiveness due to better placement and frequently suggested strategies of improvement.

In addition, it assists supervision in proper allocation of authority and responsibility by describing tasks of each job and the inter-relationships among careers. This helps matching employer skills towards the job requirements. All this can facilitate work evaluation and performance appraisal which are necessary for income evaluation, checking on the working conditions and also it really is used as a basis intended for promotions and transfers.

In formation regarding the job is definitely gathered through interviews, findings, sampling and questionnaires. Therefore , the employees of eurotunnel should expect an incentive for improved productivity in order to have great result which reward system that is predicted for eurotunnel is the reward of congratulations and spirits building since the company dose not have enough resources to fit rewards. BIBLIOGRAPHY Ask, U, Ax, C. and Johnson’s (1996); price management in Sweden: coming from modern to post modern managing accounting Coves, N. J., Prentice-Hall. Wald J (2000) Biggs’s Price accounting.; The English Vocabulary Book World and MacDonald and Evans Ltd Greater london & Plymouth