Business strategy must be supported by appropriate organizational factors such as managerial accounting. Managers of businesses use accounting information to set goals for their organization. The fundamental purpose of managerial accounting is to help an organization achieve its strategic objectives. International management accounting is the practical application of management techniques to control and report on the financial resources of the business entities. With increasing globalization of the marketplace, international investors need access to financial information based on harmonized accounting methods and procedures.
Keywords: Business-to-business strategy, service quality perceptions, managerial accounting and cost
Introduction
Every organization small, medium and large needs someone to be in charge of day to day activities who is going to be responsible for decision making, planning, controlling, directing personnel, outlining organization structure and will be responsible for taking strategies in competitive advantages. In today's business environment, cooperate organization need to take every advantage they can to remain competitive due to highly increasing competition in the market. i.e. electronics commerce ( e commerce) and introduction of new technology day by day. Customers need specialized products and service and accurate information convening product they purchasing, product availability, order status, delivering time. Shareholders expect greater value from their investment and accurate information of the financial status of the company.
This new competitive environment requires companies ability to create value for their customers and to differentiate themselves from their competitors through the formulation of clear business strategy .In today's business environment, knowledge is power so business strategy must be supported by appropriate organizational factors such as accounting information systems, organizational design and effective manufacturing process
Managerial Accounting deals with provision of information inside the company - that is, the process of identifying, measuring and forecasting, analyzing, interpreting, an communicating information for the pursuit of an organization's goals.
Literature Review
Business strategy must be supported by appropriate organizational factors such as managerial accounting. Managers of businesses use accounting information to set goals for their organization. The fundamental purpose of managerial accounting is to help an organization achieve its strategic objectives. International management accounting is the practical application of management techniques to control and report on the financial resources of the business entities. The purpose of this study was to develop a comprehensive framework for Managerial accounting, linking managerial managers and business environment. The proposed framework provides structure for managers to understand and assess the variety of managerial accounting tools that have been developed to date, with the intention of encouraging their adoption.
Generally, managerial accountants prepare a variety of reports. Such as reports that focus on how well managers or business units have performed, comparing actual results to planning ,forecasting and to bench-marks. Some reports provide timely, frequent updates on key indicators such as orders received, order 'slog, capacity utilization and raw material utilization, and sales. Other analytical reports are prepared as needed to investigate specific problems such as a decrease in the profit of a product line. Though other reports analyze a developing business situation or opportunity. But, on the contrary, financial accounting is set to specifically prescribe annual and quarterly financial statements in accordance with generally accepted accounting principles
Four areas that contribute to efficiency gains: 30-60 % reductions in quality rejects, decreased production time of 50-90%, reduction of capital expenditures of 25-30%; and significant decreases in inventory costs. Another possible benefit which may be realized is the discovery of problems inherent in the production process that may surface due to streamlining or to reduction of slack within the process .Hall (1989)
Methodology
Just in time (JIT) is a production strategy that strives to improve a business return on investment by reducing in-process inventory and associated carrying costs. To meet JIT objectives, the process relies on signals or Kanban between different points in the process, which tell production when to make the next part. Kanban are usually 'tickets' but can be simple visual signals, such as the presence or absence of a part on a shelf. Implemented correctly, JIT focuses on continuous improvement and can improve a manufacturing organization's return on investment, quality, and efficiency.
To achieve continuous improvement key areas of focus could be flow, employee involvement and quality. JIT can offer organizations a competitive advantage of offering consumers higher quality products than those offered by other competitors, or providing a superior means of production which gives the organization competitive advantage in efficiency or more productive, Lubben (1988) suggest three ways of JIT can assist management in obtaining a competitive advantage.
Integrating and optimizing: This involves reducing the operations and resources which do not facilitate production and Improving continuously :This involves continually trying to improve processes and systems.
Understanding the customer: This entails reducing the cost of products and satisfying consumer needs.
Grenzplankostenrechnung (GPK) is a German costing methodology, developed in the late 1940s and 1950s, designed to provide a consistent and accurate application of how managerial costs are calculated and assigned to a product or service. Grenzplankostenrechnung
(Marginal plan costing) Like direct costing, is based on the separation of variable and fixed costs, reflecting the dependence of costs on the output volume -used for short term planning as well as control purposes where linear cost functions and the principle of decision relevance play important roles(H.G Plaut)
Discussion
There are lot of benefits associated with the use of JIT.Though there are cons of JIT approach as well. However , in order to properly implement JIT within an organization, managers should be aware of the limitations and cons of JIT which may be applied in an organizations. Workers on JIT line must be multi skilled and flexible. Workers are often expected to operate all of the equipment on the JIT product flow line. Workers are expected to do minor repair and do maintenance work when they would otherwise be idle since (JIT) is continues improvement.
It improved working relationship between workers, stronger and more reliable working relations with suppliers, higher profits and improved customer satisfaction. More over the inadequate feature are reduced, resulting in less waste and greater customer satisfaction. However Cultural differences have been cited as a possible limitation of JIT. Problem might occur due to many intrinsic attached to JIT success which may be difficult to overcome or work around without changes in attitudes and worker philosophy.
Advantages and Limitation of GPK
GPK support management dynamically in decision making over which products/service to offer, how to price those products and services also how to plan and control operations, but still remains shortcomings if use it independently i.e. lack of information on indirect cost, if the cost of updated system is too high, and difficult appraise the capacity of resource in short time.
conclusion
Generally, In today’s business environment, companies need to take every advantage they can to remain competitive. Global competition, rapid innovation, entrepreneurial competitors, and increasingly demanding customers have altered the nature of competition in the market place. This new competitive environment requires companies’ ability to create value for their customers and to differentiate themselves from their competitors through the formulation of a clear business strategy. Business strategy must be supported by appropriate organizational factors such as accounting information systems, organizational design and effective manufacturing process with the two method and procedures discuss above.
