Report on Bexinco Company
Subject: Business, Management | Topics:

Executive Summary    

The transformation of Bexinco Company accounting system in the 1990s as a result of transition from a centrally-planned economy to a market-based system involves significant changes in the regulatory context and in accounting practice and education.  This paper presents the scope of application of management accounting concepts and methods in Bexinco Company covered by a questionnaire survey carried out by the author between in enterprises located in central and Bangladesh. The selected companies were interviewed by means of a postal survey; with inquire forms delivered in person in some cases.

The detailed analyses carried out in this paper and the conclusions presented there were also based on information obtained from documentary evidence kept by the enterprises and from direct interviews conducted in the course of work in teams engaged in analysis and assessment of cost accounting practices in a number of large and medium Bexinco company and in management accounting system designing in these company.


 Accounting and financial reporting practices differ from organization to organization, culture to culture and country to country. Accounting is often described as the “language of business: a means of communicating financial information. Accounting is thus presented to be way of interpreting, measuring and describing the financial outcomes of economic activities.

 Back ground of the study

Accounting is the system to record all the transaction in the company. So the select a company to create an assignment on the topic management accounting practice of small-scale industries in Bangladesh. Accounting practice is the responsible to speculate that has the potential to guide the development specific accounting in a company. Accounting would have to be the virtuous process for measuring, recording and reporting the financial outcomes to transaction.

Against such backdrops in the following paragraphs an attempt has been made to highlight the relevant of the accounting in a company system.


 Objective of the study

  The main objective of the study is to critical evaluating the accounting practices of the operating in Bangladesh. The following specific objectives were directed towards achieving these main objectives.

  1. To highlight the accounting system this should be followed by accounting system of Bangladesh.
  2. To critically evaluate the existing accounting practices in the small-scale of the Bangladesh.
  3. To identify the main system of the accounting of the Bexinco company.
  4. Modification of cost accounting systems and implementation of management accounting tools in  square company is brought about by many different factors, the most important being growth of competition and ownership changes in business entities.
  5.  Bexinco Company implements mostly the methods and techniques of operational management accounting.
  6.  Short-term budgeting for cost centers is the most widely used method of management accounting.


Function of the study

        The accounting has been prepared under the historical cost convention in accordance with International Accounting Standards as adopted in Bangladesh. The Company maintains its books of accounts as per requirements of the lease financing organizations. The leased-out assets are treated as the property of the Company till such time that all the installments are fully recovered from the lessees and recognized as the income of the company, with corresponding charges of interest on fund for acquisition of the leased as well as the depreciation of the leased out assets as well as on such assets as expenses against the rental income



Organ gram

 BEXINCO, with its progressive business outlook, believes and practices corporate work culture with a classic blend of efficiency and equity. BEXINCO believes in company growth by increasing efficiency level of employees and for that offering excellent environment and support for skill and knowledge upgradation. BEXINCO values productivity as the spontaneous contribution of Human Resources. Strategic Human Resource Development Programs are the energy sources for BEXINCO HR for running towards the zenith of success. Flow of clear and specific information and justification of queries play the vital role to ensure the market reputation of BEXINCO as the most trusted and transparent company and it enriches the motivation level of HR who are the real contributors and owners of his / her own jobs. At BEXINCO, HRD symbolizes the unique blending of professionalism as well as sharing the stress and success equally like a family where every member has deep concern, feelings and pride for their own company BEXINCO. HR ensures the strong supporting role to develop & implement HR policy guidelines for ensuring uninterrupted operation and spontaneous participation to achieve organizational objective as well as fulfillment of employee needs. HR is maintaining an effective way to deal with labor union and still no unrest has been recorded as dispute. Personnel working here are taking care of BEXINCO as if it is their own family. Employee-employer relation is cordial and supporting always.


Present snd future plan of the organigation

       We want to be the world class food products manufacturer in Bangladesh by ensuring intrinsic quality products and customer service with state of the art technology and motivated .

  Company Background

    BEXINCO CONSUMER PRODUCTS LTD. introduce itself as a member of BEXINCO Group of Companies, a leading corporate house in Bangladesh engaged in manufacturing and marketing of pharmaceuticals, toiletries, consumer goods, textiles, spinning, knitting, packaging, printing etc. Our Flagship Company SQUARE PHARMACEUTICALS LTD has already achieved an ISO 9001 certification and holding the top position among all national and multinational pharmaceuticals companies in Bangladesh.

Research Methodology

     A. The rational of the study:

The rational of the study is to fulfill the requirement of the syllabus of B.B.A course for 13th batch of Southeast University. Our study aims finding the comparision between central bank and commercial bank.

   B. Data Collection:

In order to make our report empirical, we have collective data from the following sources:

(a) Primary sources:

The primary sources of unfamiliar data collective for our study were (i) interview with a number of Bexinco Company in various sector. (ii) Our observation on various infrastructure facilities atmosphere, environment organizational structure and other relevant aspects of the company.


(b)Secondary sources:

The secondary source of information collective by

I. The website

 Data analysis technique

  The data collection by us was on ‘random sampling’ basis by means of survey made through a questions filled in by 20 (twenty) employees studying in various sectors. It includes the behavior of employees in administration.

We also elected commends of our target group about the company by relevant questions

      Having the answer of the employees and on the questionnaire, we made a generalization of the answers and on basis of that tried to arrive at a conclusion by putting the situation against our overall knowledge about the state of Management Accounting Practices of small-scale industries in Bangladesh.


 There are many major limitation of assaignment which is given below lack of classification of incomes and expenditure by nature lack of grouping of assests and libilities by statements. Absences of ratio analysis and also absence principles of foreign trade and other business in the world.

Findings and Data Analysis


  Decision making process

 Decision making is the cognitive process leading to the selection of a course of action among several alternatives. Every decision making process produces a final choice. It can be an action or an opinion. It begins when we need to do something but know not what. Therefore, decision making is a reasoning process which can be rational or irrational, can be based on explicit assumptions or tacit assumptions.Common examples include shopping, deciding what to eat, when to sleep, and deciding whom or what to vote for in an election or referendum.

Decision making is said to be a psychological construct. This means that although we can never “see” a decision, we can infer from observable behaviour that a decision has been made. Therefore, we conclude that a psychological event that we call “decision making” has occurred. It is a construction that imputes commitment to action. That is, based on observable actions, we assume that people have made a commitment to affect the action.

Structured rational decision making is an important part of all science-based professions, where specialists apply their knowledge in a given area to making informed decisions. For example, medical decision making often involves making a diagnosis and selecting an appropriate treatment. Some research using naturalistic methods shows, however, that in situations with higher time pressure, higher stakes, or increased ambiguities, experts use intuitive decision making rather than structured approaches, following a recognition primed decision approach to fit a set of indicators into the expert’s experience and immediately arrive at a satisfactory course of action without weighing alternatives. Also, recent robust decision efforts have formally integrated uncertainty into the decision making process.


Decision making style

According to behavioralist Isabel Briggs Myers, a person’s decision making process depends to a significant degree on their cognitive style.[1] Myers developed a set of four bi-polar dimensions, called the Myers-Briggs Type Indicator (MBTI). The terminal points on these dimensions are: thinking and feeling; extroversion and introversion; judgement and perception; and sensing and intuition. She claimed that a person’s decision making style is based largely on how they score on these four dimensions. For example, someone who scored near the thinking, extroversion, sensing, and judgement ends of the dimensions would tend to have a logical, analytical, objective, critical, and empirical decision making style.

Other studies suggest that these national or cross-cultural differences exist across entire societies. For example, Maris Martinsons has found that American, Japanese and Chinese business leaders each exhibit a distinctive national style of decision making.

   Cognitive and personal biases in decision making


Biases can creep into our decision making processes. Many different people have made a decision about the same question (e.g. “Should I have a doctor look at this troubling breast cancer symptom I’ve discovered.” “Why did I ignore the evidence that the project was going over budget?”) and then craft potential cognitive interventions aimed at improving decision making outcomes.

Below is a list of some of the more commonly debated cognitive biases.

Selective search for evidence (a.k.a Confirmation bias in psychology) (Plous, 1993) – We tend to be willing to gather facts that support certain conclusions but disregard other facts that support different conclusions.

Premature termination of search for evidence – We tend to accept the first alternative that looks like it might work.

•     Inertia – Unwillingness to change thought patterns that we have used in the past in the face of new circumstances.

•   Selective perception – We actively screen-out information that we do not think is salient.

•    Wishful thinking or optimism – We tend to want to see things in a positive light and this can distort our perception and thinking.

•   Choice-supportive bias occurs when we distort our memories of chosen and rejected options to make the chosen options seem relatively more attractive.

•   Recency – We tend to place more attention on more recent information and either ignore or forget more distant information. The opposite effect in the first set of data or other information is termed Primacy effect

•   Repetition bias – A willingness to believe what we have been told most often and by the greatest number of different of sources.

•   Anchoring and adjustment – Decisions are unduly influenced by initial information that shapes our view of subsequent information.

•    Group think – Peer pressure to conform to the opinions held by the group.

•  Source credibility bias – We reject something if we have a bias against the person, organization, or group to which the person belongs: We are inclined to accept a statement by someone we like. (See prejudice.)

•  Incremental decision making and escalating commitment – We look at a decision as a small step in a process and this tends to perpetuate a series of similar decisions. This can be contrasted with zero-based decision makin

•  Attribution asymmetry – We tend to attribute our success to our abilities and talents, but we attribute our failures to bad luck and external factors. We attribute other’s success to good luck, and their failures to their mistakes.

• Role fulfillment (Self Fulfilling Prophecy) – We conform to the decision making expectations that others have of someone in our position.

• Underestimating uncertainty and the illusion of control – We tend to underestimate future uncertainty because we tend to believe we have more control

•  Cognitive neuroscience of decision making

The anterior cingulate cortex (ACC) and orbitofrontal cortex are brain regions involved in decision making processes. A recent neuroimaging study, Interactions between decision making and performance monitoring within prefrontal cortex, found distinctive patterns of neural activation in these regions depending on whether decisions were made on the basis of personal volition or following directions from someone else.

Another recent study by found that lesions to the ACC in the macaque resulted in impaired decision making in the long run of reinforcement guided tasks suggesting that the ACC is responsible for evaluating past reinforcement information and guiding future action.

•  appears to aid the decision making process:

• Decision making often occurs in the face of uncertainty about whether one’s choices will lead to benefit or harm. The somatic-marker hypothesis is a neurobiological theory of how decisions are made in the face of uncertain outcome. This theory holds that such decisions are aided by emotions, in the form of bodily states, that are elicited during the deliberation of future consequences and that mark different options for behavior as being advantageous or disadvantageous. This process involves an interplay between neural systems that elicit emotional/bodily states and neural systems that map these emotional/bodily states. [2].


                                    Decision making in groups

In addition to the different processes involved in making decisions, group decision support systems (GDSS) may have different decision rules. A decision rule is the GDSS protocol a group uses to choose among scenario planning alternatives.

  •   Unanimity:– Unanimity is commonly used by juries in criminal trials in the United States. Unanimity requires everyone to agree on a given course of action, and thus imposes a high bar for action.
  •  Majority:– Majority requires support from more than 50% of the members of the group. Thus, the bar for action is lower than with unanimity and a group of “losers” is implicit to this rule.
  •   Range voting:— Range voting allows a group to select one option from a set by letting each member score one or more of the available options. The option with the highest average is chosen. This method has experimentally been shown to produce the lowest Bayesian regret among common voting methods, even when voters are strategic.
  • Gathering:— Gathering involves all participants acknowledging each other’s needs and opinions and tends towards a problem solving approach in which as many needs and opinions as possible can be satisfied. It allows for multiple outcomes and does not require agreement from some for others to act.
  • Sub-committee:— Sub-committee involves assigning responsibility for evaluation of a decision to a sub-set of a larger group, which then comes back to the larger group with recommendations for action. Using a sub-committee is more common in larger governance groups, such as a
  • legislature:— legislature Sometimes a sub-committee includes those individuals most affected by a decision, although at other times it is useful for the larger group to have a sub-committee that involves more neutral participants.
  • Plurality:– Plurality where the largest block in a group decides, even if it falls short of a majority.



The ethical principles of decision making vary considerably. Some common choices of principles and the methods which seem to match them include:

There are many decision making levels having a participation element. A common example is that of institutions making decisions that affect those for whom they provide. In such cases an understanding of what participation level is involved becomes crucial to understand the process and power structures dynamics.

Control-Ethics. When organisations/institutions make decisions it is important to find the balance between the parameters of control mechanisms and the ethical principles which ensure ‘best’ outcome for individuals and communities impacted on by the decision. Controls may be set by elements such as Legislation, historical precedents, available resources, Standards, policies, procedures and practices. Ethical elements may include equity, fairness, transparency, social justice, choice, least restrictive alternative, empowerment. Decision making in business and management

In general, business and management systems should be set up to allow decision making at the lowest possible level.

Several decision making models or practices for business include:

                                 Decision-makers and influencers

In the context of industrial goods marketing, there is much theory, and even more opinion, expressed about how the various ‘decision-makers’ and ‘influencers’ (those who can only influence, not decide, the final decision) interact. Decisions are frequently taken by groups, rather than individuals, and the official buyer often does not have authority to make the decision.

                                         Positional and combinational styles

Styles and methods of decision making were elaborated by the founder of Predispositioning Theory, Aron Katsenelinboigen. In his analysis on styles and methods Katsenelinboigen referred to the game of chess, saying that “chess does disclose various methods of operation, notably the creation of predisposition—methods which may be applicable to other, more complex systems.” In his book Katsenelinboigen states that apart from the methods (reactive and selective) and sub-methods (randomization, predispositioning, programming), there are two major styles – positional and combinational. Both styles are utilized in the game of chess. According to Katsenelinboigen, the two styles reflect two basic approaches to the uncertainty: deterministic (combinational style) and indeterministic (positional style). Katsenelinboigen’s definition of the two styles are the following.

The combinational style is characterized by

  • a very narrow, clearly defined, primarily material goal, and
  • a program that links the initial position with the final outcome.

In defining the combinational style in chess, Katsenelinboigen writes:

The combinational style features a clearly formulated limited objective, namely the capture of material (the main constituent element of a chess position). The objective is implemented via a well defined and in some cases in a unique sequence of moves aimed at reaching the set goal. As a rule, this sequence leaves no options for the opponent. Finding a combinational objective allows the player to focus all his energies on efficient execution, that is, the player’s analysis may be limited to the pieces directly partaking in the combination. This approach is the crux of the combination and the combinational style of play.

The positional style is distinguished by

  • a positional goal and
  • a formation of semi-complete linkages between the initial step and final outcome.

“Unlike the combinational player, the positional player is occupied, first and foremost, with the elaboration of the position that will allow him to develop in the unknown future. In playing the positional style, the player must evaluate relational and material parameters as independent variables. (… ) The positional style gives the player the opportunity to develop a position until it becomes pregnant with a combination. However, the combination is not the final goal of the positional player—it helps him to achieve the desirable, keeping in mind a predisposition for the future development. The Pyrrhic victory is the best example of one’s inability to think positionally.”

The positional style serves to

a) create a predisposition to the future development of the position;
b) induce the environment in a certain way;
c) absorb an unexpected outcome in one’s favor;
d) avoid the negative aspects of unexpected outcomes.

The positional style gives the player the opportunity to develop a position until it becomes pregnant with a combination. Katsenelinboigen writes:
“As the game progressed and defense became more sophisticated the combinational style of play declined. . . . The positional style of chess does not eliminate the combinational one with its attempt to see the entire program of action in advance. The positional style merely prepares the transformation to a combination when the latter becomes feasible.”[5

Accounting System

Accounts Receivable Concepts

The accounts receivable subsystem (A/R) maintains records on customers and customer invoicing and payments. It is designed to provide summary data to the FACCTS general ledger system and to accept billing information from one of several optional billing subsystems. All detailed backup of the accounts receivable control account in general ledger comes from the A/R subsystem, along with customer histories, aged trial balance, etc.

 Customer Records

The focal point of the A/R subsystem is the customer file; this contains standard information about each customer, such as name and address. This file also maintains the highest amount ever owed by the customer and the date on which this occurred. A salesman may be associated with each customer, and the customer file also carries the total business year-to-date and total business.

Customers are references by a 6-character code referred to as the “customer number” by the system; since letters are allowed as well as numbers; we suggest a coding scheme based on the customer name rather than a sequential numbering scheme.

You may also use the TARGET BACK OFFICE MENU, choice #51 ADD PROSPECT TO A/R to enter a prospect already in the system into the Accounts Receivable system. Just fill in the appropriate fields.

Customer information may be printed in proofreading form or on Rolodex™ cards as desired. The address information stored here is available to the billing subsystems for automatic addressing of invoices.

 Invoice Records

Invoice Records are normally done by the Billing System, each customer invoice is maintained in the A/R database in detail; each line item of the invoice carries the description, dollar amount, and general ledger account number for revenue distribution. The dollar amount in any given line can be a plus indicating a debit to the customer account or a minus indicating a credit to the customer account.

Also associated with each invoice is a “header” which carries the invoice date, total amount, balance, and a general description. Each invoice may also carry an indication of the responsible salesman, who may differ from the salesman assigned to the customer.

Invoice entry may be via the A/R subsystem function or may be accomplished by one of the optional billing subsystems available with FACCTS. The operation of the A/R subsystem is the same no matter what the source of a given invoice record.

 Credit Records

In FACCTS, credits are identical to invoices except for the sign of the total amount; a credit invoice might actually contain debit line items: the mixing of these types is completely general. The numbering scheme for credits is up to the user; we suggest that a unified numbering scheme for invoices and credits be adopted as a control, but a dual numbering system is acceptable as long as the same number is not used more than once.

Payment Records

Payments are also stored in detail in FACCTS; associated with each customer check is a “header” with such information as the check number, date and total amount. For each invoice against which the check is used as a payment (“applied”) there is a detail record which carries the invoice number and amount applied to this invoice. This information is used to produce the customer history and also to deal with returned (NSF) checks.

Application of Payments

The normal procedure for entering a customer payment includes specifying the application of the payment to invoices. In some cases this may not be convenient or possible; in these cases, the check may be left unapplied either in whole or in part when it is entered. There is a separate procedure to be used to apply a payment left unapplied when entered; cash should not be left unapplied longer than necessary.

To aid in isolating and applying unapplied cash, FACCTS provides a report showing all unapplied cash in the database. This report should be run periodically, and cash applied as possible. Unapplied cash also shows on the aged trial balance report.

Posting to General Ledger

The data stored in the A/R subsystem database is independent of data stored in the general ledger system. The connection between the subsystems is the posting process in accounts receivable which summarizes all changes in A/R position to G/L. Invoices are posted to the ledger based on the transaction date specified when the invoice was booked; for each unique transaction date with data to be posted, a ledger entry is constructed with one line item for each revenue account and one for the A/R control account. The report produced by this process should be filed with the other journal entry aprons as part of the audit trail.

Cash receipts are posted to general ledger based on the date specified by the user at the time the posting is run; this date is used so that the G/L date can match the actual deposit date as an aid to reconciliation. This implies that the posting should be run at least every time a deposit is made, if not every day.

 Sales Journal

The sales journal (called “invoice register” in some systems) lists all invoices issued during the selected period. This provides a cross reference to filing systems which file invoices by customers, and also gives sales activity for the selected period. If desired, a sales journal may be requested for a single salesman.

In conjunction with the cash journal, the sales journal can be used as an audit check on the change in position in the A/R control account balance.

Cash Journal

The cash journal shows all cash receipts during the selected period. This is used as a control on the bank deposits during the period.

Aged Trial Balance

The aged trial balance details all open receivables invoices by customer. It serves as a backup to the balance in the A/R control account in the ledger and also as a collection tool. The totals for each aging category may be helpful in planning cash flow.

Invoice Aprons

Invoices booked via the A/R subsystem will not have any system-generated backup similar to that produced by the billing subsystems. For this reason, A/R can produce an entry apron after the fact to be used as the backup document, showing the amounts, descriptions, and revenue distribution. These should be filed with the invoice copies.


Income Journal

The income journal shows the details of all entries to the revenue accounts in general ledger coming from A/R. The detail consists of the actual line items from the invoices hitting each revenue account, along with customer and invoice identity.

Customer History

The customer history shows all transactions against the customer account. The transactions are shown in invoice sequence, with any payment against the invoice shown with it. It is important to note that if a check was received in payment of several invoices, the check will be shown in pieces corresponding to the amounts paid on the various invoices.

Unapplied Cash Report

The unapplied cash report gives a listing of all unapplied cash being held in the A/R subsystem. Since unapplied cash may distort the view of a customer payment history, statements, etc it is important to run this report periodically and apply cash as soon as possible.

Customer Statements

The customer statements produced by the system are in a form suitable for mailing in window envelopes if printed on letterhead; the statement shows each open invoice, with date, invoice number, description, and amount due. Invoices against which partial payments have been made will be shown net of the payment. Note that unapplied cash may distort the statement of account, so it is important to run the unapplied cash report before producing statements.

If statements are to be printed on blank paper, the appropriate heading information may be specified in CONTROL MAINTENANCE.

Revision control (also known as version control (system) (VCS), source control or (source) code management (SCM)) is the management of multiple revisions of the same unit of information. It is most commonly used in engineering and software development to manage ongoing development of digital documents like application source code, art resources such as blueprints or electronic models, and other critical information that may be worked on by a team of people. Changes to these documents are identified by incrementing an associated number or letter code, termed the “revision number”, “revision level”, or simply “revision” and associated historically with the person making the change. A simple form of revision control, for example, has the initial issue of a drawing assigned the revision number “1”. When the first change is made, the revision number is incremented to “2” and so on.

Standalone version control systems mostly come from the software engineering industry, but revision control is also embedded in various types of software like word processors spreadsheets (e.g. OOcalc), in various content management systems. Integrated revision control is a key feature of packages such as, revision control allows for the ability to revert a page to a previous revision, which is critical for defending a public wiki against vandalism and spam, to allow legitimate users to correct their mistakes, and to allow groups of editors to track each other’s edits.


Most revision control software can use delta compression, which retains only the differences between successive versions of files. This allows more efficient storage of many different versions of files.


Version merging

Most version control systems, such as CVS, allow multiple developers to be editing the same file at the same time. The first developer to “check in” changes to the central repository always succeeds. The system provides facilities to merge changes into the central repository, so the changes from the first developer are preserved when the other developers check in.

The concept of a reserved edit can provide an optional means to explicitly lock a file for exclusive write access, even though a merging capability exists.

Distributed revision control

Distributed revision control (DRCS) takes a peer-to-peer approach, as opposed to the client-server approach of centralized systems. Rather than a single, central repository on which clients synchronize, each peer’s working copy of the codebase is a bona-fide repository. Synchronization is conducted by exchanging patches (change-sets) from peer to peer. This results in some striking differences from a centralized system:

  • No canonical, reference copy of the codebase exists by default; only working copies.
  • Common operations such as commits, viewing history, and reverting changes are fast, because there is no need to communicate with a central server.
  • Each working copy is effectively a remoted backup of the codebase and change history, providing natural security against data loss.

There are two types of distributed systems: open and closed. Open systems are tuned more to open-source development, and closed systems to traditional, single baseline, development.


Open systems

An open system of distributed revision control is characterized by its support for independent branches, and its heavy reliance on merge operations. Its general characteristics are:

  • Every working copy is effectively a branch.
  • Each branch is actually implemented as a working copy, with merges conducted by ordinary patch exchange, from branch to branch.
  • Code forking is therefore easier to accomplish, where desired, because every working copy is a potential fork. (By the same token, undesirable forks are easier to mend because, if the dispute can be resolved, re-merging the code is easy.)
  • It may be possible to “cherry-pick” single changes, selectively pulling them from peer to peer.
  • New peers can freely join, without applying for access to a server.

Closed systems

A closed system of distributed revision control is based on a replicated database. A check-in is equivalent to a distributed commit. Successful commits create a single baseline. An example of a closed distributed system is Code Co-op.


Management accounting application

      The management accounting of yesterday has lost its relevance in the business world of today. Management accounting has tended to focus on its decision making influence and its ability to determine constraint optimization. Workers were not considered to be creative forces in the business. They were almost looked at as being part of the equipment and machinery. Businesses of today are heading in a different direction. Management accounting must take a new direction to be applicable in today’s business environment. The new focuses are as follows:


1. A behavior influence.

2. Market-driven management.

3. A dynamic approach.

4. A team-oriented approach.

  Behavior Influencing Focus


The primary purpose of this focus is to influence employees to perform the desired actions. The system does not necessarily reflect accurate information, but puts twists on the information to paint the desired picture. Accounting systems are being used to motivate employees to act in accordance with the company’s strategies and achieve the goals.


Market-driven Management


Under this focus, the accounting system focuses on the market or customer demands instead of the technological limitations. In order to implement this thinking successfully, management and employees must stay close to their customers in order to stay aware of the market demands. Successful implementation of the focus by the Japanese has involved focusing on the cost that would still allow a profit and then to design a method for achieving that cost.

                                                                    Dynamic Approach


Performance is judged over time without focusing on the individual performance at a specific point in time. Traditional management accounting systems have become accustomed to judging performance for specific time periods. This new system of management accounting stresses the improvement of performance over a period of time, helping the organization learn and improve.

Team-Oriented Approach


Specialization is not necessarily the key to achieving optimal success. Management accountants should focus on communicating information to all levels within the organization. Non-financial goals should also be used to measure success. When people within an organization become too specialized, there is often too much passing of responsibilities. People tend to only function within their specifications and no nothing of what others are doing within the organization.


Control management

Control  managementfocuses on the use of  accounting, financial, and other types of information by managers of organizations. Managers of all organizations, whether in manufacturing, wholesale, service, e-commerce, non-profit or government, must make decisions in an increasingly complex and changing environment. Information is used by managers to assess the relative merits of alternative courses of action for any given decision. Management accounting involves generating and using this information.

Based upon feedback from students and faculty, this Fourth Edition has been reorganized to present the material in a framework that reflects the use of management accounting by managers. Part One, Management Accounting, Information and Decisions, describes how managers make decisions. The relationship between management accounting and other business fields is discussed so students understand the subject within the context of the field of management education. Part One also deals with the generation of management accounting information used by managers, and covers various cost classifications and cost systems that managers use to generate information. A common objective of this information is to indicate the effect of a decision on the organization’s profits or goals. Without a firm understanding of the costs, a manager is unable to fully understand and evaluate the impact of alternative courses of action. Part Two, Management Decisions, considers marketing and production decisions that are common to many organizations. In addition, it considers decisions that have long-term strategic implications and require more significant capital investments. These decisions require an understanding of management issues that are covered in other subject areas. However, students are provided with sufficient information to use management accounting information to make a decision in a real-world context. These chapters focus on making decisions that will maximize shareholder value. Part Three,

Management Accounting for Planning and Control

It recognizes that a potential conflict exists between the goals of managers and the organizations’ shareholders. To assess the performance of an organization and its managers, planning and control systems are needed to establish plans and goals and to reward successful performance. Part Four,


                                  Financial Statement Analysis

It considers the use of financial information that is reported to external shareholders. This part does not deal with the preparation of this information but rather its use by decision-makers such as analysts, creditors, and investors. The four parts can be covered in sequence. However, some may prefer an alternative sequence and this book has been written to accommodate this flexibility by reorganizing the parts as modules of the subject of management accounting.

The four parts are presented as segments to the book, but they are interrelated. Part one helps managers use the information generated by various techniques and systems within the decision process outlined. Part Two provides students an opportunity to make decisions that enhance the value of the organization. Part Three provides various means of assessing the success of these decisions and of rewarding managers. Part Four considers the impact on external shareholders when organizations successfully use management accounting information and decision processes, as outlined throughout this book.

                 Management Function of Coordinating / Controlling

Basically, organizational coordination and control is taking a systematic approach to figuring out if you’re doing what you wanted to be doing or not. It’s the part of planning after you’ve decided what you wanted to be doing.

New, more “organic” forms or organizations (self-organizing organizations, self-managed teams, network organizations, etc.) allow organizations to be more responsive and adaptable in today’s rapidly changing world. These forms also cultivate empowerment among employees, much more than the hierarchical, rigidly structured organizations of the past.

Many people assert that as the nature of organizations has changed so must the nature of management control. Some people go so far as to claim that management shouldn’t exercise any form of control whatsoever. They claim that management should exist to support employee’s efforts to be fully productive members of organizations and communities — therefore, any form of control is completely counterproductive to management and employees.

Some people even react strongly against the phrase “management control”. The word itself can have a negative connotation, e.g., it can sound dominating, coercive and heavy-handed. It seems that writers of management literature now prefer use of the term “coordinating” rather than “controlling”.

Regardless of the negative connotation of the word “control”, it must exist or there is no organization at all. In its most basic form, an organization is two or more people working together to reach a goal. Whether an organization is highly bureaucratic or changing and self-organizing, the organization must exist for some reason, some purpose, some mission (implicit or explicit) — or it isn’t an organization at all. The organization must have some goal. Identifying this goal requires some form of planning, informal or formal. Reaching the goal means identifying some strategies, formal or informal. These strategies are agreed upon by members of the organization through some form of communication, formal or informal. Then members set about to act in accordance with what they agreed to do. They may change their minds, fine. But they need to recognize and acknowledge that they’re changing their minds.

This form of ongoing communication to reach a goal, tracking activities toward the goal and then subsequent decisions about what to do is the essence of management coordination. It needs to exist in some manner — formal or informal.

The following are rather typical methods of coordination in organizations. They are used as means to communicate direction and guide behaviors in that direction. The function of the following methods is not to “control”, but rather to guide. If, from ongoing communications among management and employees, the direction changes, then fine. The following methods are changed accordingly.

Note that many of the following methods are so common that we often don’t think of them as having anything to do with coordination at all. No matter what one calls the following methods — coordination or control — they’re important to the success of any organization.



                                             Various Administrative Controls

Organizations often use standardized documents to ensure complete and consistent information is gathered. Documents include titles and dates to detect different versions of the document. Computers have revolutionized administrative controls through use of integrated management information systems, project management software, human resource information systems, office automation software, etc. Organizations typically require a wide range of reports, e.g., financial reports, status reports, project reports, etc. to monitor what’s being done, by when and how.

Delegation is an approach to get things done, in conjunction with other employees. Delegation is often viewed as a major means of influence and therefore is categorized as an activity in leading (rather than controlling/coordinating). Delegation generally includes assigning responsibility to an employee to complete a task, granting the employee sufficient authority to gain the resources to do the task and letting the employee decide how that task will be carried out. Typically, the person assigning the task shares accountability with the employee for ensuring the task is completed.

Evaluation is carefully collecting and analyzing information in order to make decisions. There are many types of evaluations in organizations, for example, evaluation of marketing efforts, evaluation of employee performance, program evaluations, etc. Evaluations can focus on many aspects of an organization and its processes, for example, its goals, processes, outcomes, etc.

 Financial Statements (particularly budget management)

Once the organization has establish goals and associated strategies (or ways to reach the goals), funds are set aside for the resources and labor to the accomplish goals and tasks. As the money is spent, statements are changed to reflect what was spent, how it was spent and what it obtained. Review of financial statements is one of the more common methods to monitor the progress of programs and plans. The most common financial statements include the balance sheet, income statement and cash flow statement. Financial audits are regularly conducted to ensure that financial management practices follow generally accepted standards, as well.

Performance Management (particularly observation and feedback phases

 Performance management focuses on the performance of the total organization, including its processes, critical subsystems (departments, programs, projects, etc.) and employees. Most of us have some basic impression of employee performance management, including the role of performance reviews. Performance reviews provide an opportunity for supervisors and their employees to regularly communicate about goals, how well those goals should be met, how well the goals are being met and what must be done to continue to meet (or change) those goals. The employee is rewarded in some form for meeting performance standards, or embarks on a development plan with the supervisor in order to improve performance.


Policies and Procedures (to guide behaviors in the workplace)
Policies help ensure that behaviors in the workplace conform to federal and state laws, and also to expectations of the organization. Often, policies are applied to specified situations in the form of procedures. Personnel policies and procedures help ensure that employee laws are followed (e.g., laws such as the Americans with Disabilities Act, Occupational Health and Safety Act, etc.) and minimize the likelihood of costly litigation. A procedure is a step-by-step list of activities required to conduct a certain task. Procedures ensure that routine tasks are carried out in an effective and efficient fashion.

QualityControlan operations Management
The concept of quality control have received a great deal of attention over the past twenty years. Many people recognize phrases such as “do it right the first time, “zero defects”, “Total Quality Management”, etc. Very broadly, quality includes specifying a performance standard (often by benchmarking, or comparing to a well-accepted standard), monitoring and measuring results, comparing the results to the standard and then making adjusts as necessary. Recently, the concept of quality management has expanded to include organization-wide programs, such as Total Quality Management, ISO9000, Balanced Scorecard, etc. Operations management includes the overall activities involved in developing, producing and distributing products and services.

Risk, Safety and Liabilities
For a variety of reasons (including the increasing number of lawsuits), organizations are focusing a great deal of attention to activities that minimize risk, avoid liabilities and ensure safety of employees. Several decades ago, it was rare to hear of an organization undertaking contingency planning, disaster recovery planning or critical incident analysis. Now those activities are becoming commonplace.


From the above decision it can be said that accounting practice operation in Bangladesh is applicable for the company. The important according concepts namely historical cost, going concern, consistency, money measurement presently followed by the company law in the accounting system.


  1. Employees should undertake educational and training programs at the factory campus enabling the workers to take appropriate steps to promote their health and make better use of the facilities.
  2. Women workers need to be trained to be fit for the better salaries sections
  3. Importance and available special transport facilities and hostel for them
  4. To give health insurance for he worker, educational facilities and medical facilities for the workers.
  5. For the economic development in the country, it must be taken some step to improve the condition of the economy.














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