MODERN ACCOUNTS TECHNIQUES

Modern Accounts Techniques

Introduction

Decision making is a comprehensive process that comprises with identifying the problem and decision criteria, allocating weights to those criteria, moves to developing, analyzing and selecting an alternative that can resolve the problem, implementing the alternative and ending with the evaluating the decisions effectiveness. Management accounting is concerned with the use of information in facilitating managers to make informed business decisions effectively. Management accounting is not required to conform to national accounting standards. This allows business owners to customize the management accounting techniques as per demand of the company. As a process of this customization, some advanced quantitative as well as number of qualitative techniques accompany with the traditional techniques, have been emerged to cater the information need in decision making (McGahan, 2004).

Changes in Accounts Management

The changes that will be necessary for management accounting to be useful in the 21st century are different from the changes that have occurred in the past. In the past, the focus has been on “how can we improve what we do?” The focus for the future should be “how can we make accounting information more useful for decision making?” From the previous years of accounting standards, businesses have focussed to take different decisions to value their profits and retain organizational reform structure. Many managers have learned that cherished ways of doing business do not work anymore and that major changes must be made in how organizations are managed and in how work gets done.

Accordingly a balance sheet account, other than cash, will increase as this revenue is recognized. Typically that balance sheet account is accounts receivable. It is important to keep this relationship in mind because unusual increase in accounts receivable commonly accompanies questionable revenue, whether due to uncertainties about the earnings process or about collectability.

Company Evaluation

AT&T has been ...