Accounting TechnologyOctober 23, 2020
The U.S. Becoming more globalized will boost competition for firms in the nation, therefore making management franchisees more precious to companies. To comprehend what a rise in competition will do to U.S. Firms and their accountants, one has to first have a look at how firms from the U.S. See direction accountants compared to another nation. In a study article titled Management Accounting Practices in the U.S. And Japan: Comparative Survey Findings and also Research Implications by M. Shields and C. Chow, notes the distinction in goals set by the U.S. And Japanese accountants. The survey indicates that U.S. Accountants emphasize the use of standards to control manufacturing costs after the fact”, while contrasting Japanese accountants use practices that look towards the future.
This difference here lies inside the goals set by the firms. While firms in the U.S. Are looking at what they might do now to lower prices, Japanese companies are looking to the future to lower prices for products which may not exist yet. This line of thinking for U.S. Businesses is not acceptable, and the condition that firms are in now’s less than satisfactory since the present condition of direction accounting is in the wrong direction. Management accountants look to the future, they set up budgets, prediction, and steer companies in the right innovative direction. In increased competition, specifically for the U.S.
Businesses, business need managers which produce the best decisions for the good of the business. In an article by B. Pounder, How Globalization is Affecting U.S. Accounting “, Pounder states that one reason direction accounting is obscure in this state is because American supervisors are more inclined to make gut feeling decisions instead of making the decisions which will be good for the business in the long term. This might be tied back into the study survey from Shields Chow, looking at companies and their respective goals. It’s more common for companies in the U.S. To demonstrate action for personal gain more than it’s in Japan, and also in an age of globalization and increased competition, businesses can’t survive with that kind of state of mind and framework.