Friday, November 1, 2019

Does the Way in which Accounting Represents the World Facilitate the Essay

Does the Way in which Accounting Represents the World Facilitate the Control of Organizations - Essay Example As the discussion declares an organisation, first aims to control its internal activities through different mechanisms. One of the mechanisms which is considered very important when it comes to discuss the control of organisations is the use of accounting methodologies and practices. Various accounting control systems are considered very important to ensure the internal control of organisation and also to enhance the capability of organisations to fulfil its accountability towards the environment. In addition to the accounting control systems, organisations have also developed various other tools such as good human resource management practices, policies and rules and other mechanisms to ensure the control of organisation, however, it is generally believed that accounting is central to all kinds of mechanisms of control of organisations and it is the most effective mechanism to ensure the control of organisations. This paper explores that accounting plays a very significant role because it portrays the image of the company through various accounting methodologies and practices. How different accounting practices facilitate the control of organisation is directly linked with the areas of accounting that enhance the accountability of various aspects of businesses. Financial Accounting is the area of accounting in which the financial events and transactions of the company are identified, measured, recorded, classified, summarised, analysed, interpreted and communicated. Through this branch of accounting, the organisation seeks to keep the systematic records and communicates the financial performance of the company to the interest parties. Cost Accounting is the area of accounting which deals with the control of the cost of the product, process or operation. In this branch of accounting the costs are measured the information is used for decision making. Management accounting is the area of account ing which uses the accounting methodologies to provide the information that is important

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