Accounting: Diving into the Wide Scope and its Relevance

In the accountancy, business, and management strand some basic accounting concepts were discussed, and as far as I remembered we have Fundamentals of Accounting and Business Management 1 and 2. What remained in my memory is that we have created the basics of financial statements like balance sheets, income statements, and other accounting theories. Those topics somewhat imparted analytical and practical knowledge to us learners which help us to prepare for the challenges of the fast-changing business world.

In relation to current lessons that were discussed in synchronous class, I learned various things that I did not know before as in the past what we tackled are just an overview or just the tip of the iceberg. With this subject, it digs deeper into more complicated and higher levels of accounting. 

Management Accounting, Cost Accounting, Cost Concepts, and Cost Behavior were just a few of the topics that were discussed on the first week of class and most of the terminologies were new to my ears and never heard before. I learned that management accounting and cost-accounting are branches of accounting wherein they have specific functions and the main purpose is to provide financial or non-financial information in order to come up with wise transactions or decisions for the betterment of the organization. In management accounting, it introduces the value of getting things done through people as it aims to support the management function of the organization and make the information available as well as understandable to the management. On the other hand, cost accounting serves as the bridge between financial and management accounting. From those, it generated different concepts related to costs and how their behavior impacts the process of accounting.

As a future human resource manager, these studies will be a contributing factor in order to meet the necessary obligations related to finances in an organization. It can help to be comfortable with numbers and interpreting performance measurements related to inventory, customer satisfaction, sales, and quality control. Moreover, giving importance to the relations between accounting and human resource is also in need as it will help to determine the financial success or failure of a company. For example, costs in providing training and development programs in an organization are expensive as it includes production materials, rent for the place, sounds systems, equipment, and other paraphernalia. If ever HR managers failed to analyze, interpret and communicate these various information including the costs to support the management function of the organization then, it can drastically affect its operation. Some resources might be wasted and thus, it is important to make wise as well as strategic planning or decisions on when, where, and how much money to spend based on the needs of the operation of the business.

Furthermore, the value of information and professional ethics in management accounting are the certain areas that have an impact on me. Even though there are a lot of terminologies discussed and I know that all of them are important in studying accounting, however, besides numbers or any computations, I am more interested in these theories as this can be a foundation in order to achieve accurate financial results. It is important first that the data from the financial reports, sales invoices, books of account, and other sources documents, financial or not financial must all have a basis on why they come up with those numbers. Information given must be precise as possible to avoid conflicts or errors during the actual computation of the costs and other data needed by the organization to determine the level of their success. Thus, ethical procedures must also be considered besides earning goals and achieving the profit of the business. It includes integrity, objectivity, competence and due care, confidentiality as well as professional behavior.