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The assessments for this subject are descnbed below. The description includes the type of assessment. its purpose, weighting, due date and submission requirements, the topic of the assessment, details of the task and detailed marking criteria, including a marking rubric for essays. reports and presentations. Supplementary assessment information and assistance can be found in Moodie. 
KOI expects students to submit their own original work in both assignments and exams. or the original work of their group in the case of group assignments. 

Challenges in the Accounting Sector

Performance of accountants at Caltex can be influenced by many things and concept and theories are some of the many ways. Managerial performance is the measurement of managers productivity in a company, through the evaluation of the quality and quantity of the fulfillment of the goals that were set by the budget, effectiveness of the practices conducted by the accountants, and finally the total number of innovations or new ideas generated by the managers. Measurement of managers performance is based on a various standard which is mainly set by budgets. Usually, the standards of measuring managerial performance are based on managers both efficiency and effectiveness (Shearon and Frucot, 1991).

Challenges are a drawing back aspect in the accounting sector which comes from within the sector or from outside forces. Organizational policies and cultures in many at times dictate this sector behavior which in many cases tries to cover transactions in the favor of the involved individuals (Covaleski, Evans, Luft and Shields, 2003). Apart from the policies and culture, the accounting sector is prone to issues that are directly linked to the service provision to the citizens. A lot of the accuracy issues in the accounting sector are associated with reputation facilitation that involves transactions extending to the levels of finances thus being affected by the monetary policies and also acts as an avenue for managers to seek benefits from the transactions (Oluwalope and Sunday, 2017). Therefore, this paper will try and identify the relationship between budgeting and the performance of managers in Caltex and connect the various issues experienced with the four accounting concepts that are mainly used in the sector.

  1. Transaction Concept Theory

In a differentiated Accounting sector of Caltex, the transaction that goes in and out of the different offices is liable to vacillations in financial strength. This makes vulnerability for financial administrators with regards to the estimation of the expenditures in connection to monetary changes. Nonstop variances in the outside trade business sector could mean changes in the budgetary framework in expenditure as former arranged which may hinder transparency due cross border transactions. On the off chance that one requires a portion of your financing for activities in developing economies where one directs their transactions, fluctuating economy can subject Business Sectors to fluctuating loan fees which can act to benefit few individuals proceeds unnoticed in the departments (Stedry, 1964).

Supervisors need to screen the monetary procedures nearly for suitable rates that advantage the wellbeing of the sector and guarantee that one is in accordance with the financial planning an all truth disclosed (Parry, 2007). This can be a test while doing buys in a nation where these foundations have impact, since they prompt banks in such nations to abstain from testing waters in the more hazardous markets in its basic change programs threatening transparency in transactions (Chong and Chong, 2001).

Impact of Budgeting on Managerial Performance

This in many cases means that the Accounting sector budget is prone to the variations that take place in the monetary institution where they do the purchases for the financial facilities. Initially when setting up the transactional standards the rules and regulations favoring but during the implementation a change occurs (Brownell and Mclnnes, 1986). These changes may affect the laid standards of transactions either positive or negatively depending on what is implemented. When the variation happens altering the budget to the negative it means that a reset of the financial plan is done costing time and resources from the financial sector with a call of attention in the management given priority to handle the situation giving them a chance to hide the transactions that were not were known by other managers thus committing monetary offences.

  1. Accounting period Concept

Accounting administrators perform obligations of administering workers who make spending plans and get ready reports, explanations, and conjectures identified with the financial sector budgetary plans. While spending plan experts might concentrate fundamentally on charges and credits, money related directors must have a comprehension of the dealings all in all and have the capacity to peruse patterns, gauge challenges, and explore enactment relating to the various business sector (Mohamed, Evans and Tirimba, 2015). All this are roles and responsibilities of the key stakeholders in the financial management and the budget implementation process.

It doesn’t mean that with all the duties and responsibilities state, all the expected returns will be arrived at with ease and their disclosure being the best when it comes the knowledge of all that is happening. There are drawbacks that actually happen due to the fact that this is a team and not all the individual who have the same performance capabilities and the objectives towards the activities of the accounting sector aiming to do the duties without violating the transparency rule and concept (Ronen and Livingstone, 1975). Various challenges are encountered in the process but not all are addressed since they happen in a way that is not widely clear to the department heads and the budgetary implementers. Therefore, there found the need to get deep in the understanding of this various and unrevealed transparency challenges to enlighten the Public accounting Sector and also come up with suggestions that can be very vital to act as remedies to the transparency challenges acting as guideline for effective and improved operations and performances of accountants (Amirul, Mail and Ripain, 2017). This to a larger portion determines and defines the accounting period of an accounting project.

  1. Full Disclosure Concept

Performance of Accounting Administrators

As observed, many organizations and businesses like Caltex are trying to maximize the overall productivity by focusing on employees and other strategic units in relation to disclosure of financial/ accounting undertakings. Approaches to increasing the performance of accountants in an organization are very low (Otely, 1978). One of the approaches to increasing the performance of accountants in Caltex is through their participation in budgeting. Further research needs to be conducted to add more explanations on the relationship between budgeting and managerial performance for the realization of full disclosure concept. Stedry (1964) argues that “as long as participants participate, the effects will be beneficial”. He states that involvement is mostly impacted by environmental aspects and character. According to Stedry, studies have produced unlike results from the inferences made in accounting activities. The results indicated that participation of accountants in budgeting unreliably enhanced morale, but participation did not affect efficiency.

  1. Realization Concept

Across the world, the different organization is working different ways of increasing the performance of accountants at their respective departments in an organization or a business similar to Caltex. There has been conflicting in trying to understand the relationship between managerial performance and accounting participation. Many workers, stakeholders, and accountants have been found to the most people affected by budgets (Kren, 1992). Budgeting is very important because of the nature of competition between different organizations or businesses.

Caltex among other companies need to analyze the impact of accounting on the level of commitment of the manager in their respective strategic units in an organization for the realization concept to be fully utilized. The performance of accountants in Caltex influences the overall productivity and performance of the whole organization or business. There have been fewer studies based on the performance of managers in an organization. Many studies focus on the performance of other employee leaving alone the performance of managers in Caltex (Becker and Green, 1962). Any mistake done by a single accountant affects the whole organization, and the best approach to monitor and control the performance of managers is through proper accounting implementation. Therefore, it is worth investigating the impact of accounting on the performance of managers in Caltex in order to achieve the goals of the organization.

Conclusion

For the success of each and every business or organization like Caltex, accounting is very important. In accounting management, budgeting is the most researched field and these studies have been based on four main concept theories. The four main concept theories include; realization concept, Full Disclosure concept, Transaction concept and Accounting period concept. Therefore, accounting offers many opportunities for studies that chose between the challenging theories from economics, psychology, and social perspectives or merges well-matched theories from different viewpoints, to develop whole and valid explanations of the causes and effects of practices of accountants. There is a relationship between budgeting and responsibility accounting, compensation, cost accounting, and performance measurement. One of the areas where a vast amount of studies has been conducted is the relationship between budgeting and the performance of accountants and workers in Caltex. The literature reviews already done have explored the impacts of accounting on the performance of organizations. Also, the effects of accounting concepts on managerial performance has been analyzed which shows that they interrelate. Different opinions from different researchers and scholars will be considered which are based on the relationship between managerial performance and budgeting. The studies have revealed that accounting through the participation of stakeholders increases the performance of accountants thereby increasing the overall productivity of the Caltex Company.

References

Amirul, S. M., Mail, R., & Ripain, N. (2017). Employees’ Budget Participation and Its Effect on Departmental Performance in Sabah Local Authority. Indian Journal of Science and Technology, 10(13), 1-7.

Becker, S., & Green, D. (1962). Budgeting and Employee Behavior. The Journal of Business, 35(4), 392-402.

Brownell, P., & Mclnnes, M. (1986). Budgetary Participation, Motivation, and Managerial Performance. The Accounting Review, 61(4), 587-600.

Chong, V. K., & Chong, K. M. (2002). Budget Goal Commitment and Informational Effects of Budget Participation on Performance: A Structural Equation Modeling Approach. Behavioral Research In Accounting, 14, 65-86.

Covaleski, M. A., Evans, J. H., Luft, J. L., & Shields, M. D. (2003). Budgeting Research: Three Theoretical Perspectives and Criteria for Selective Integration. JOURNAL OF MANAGEMENT ACCOUNTING RESEARCH, 15, 3-49.

Kren, L. (1992). Budgetary Participation and Managerial Performance: The Impact of Information and Environmental Volatility. The Accounting Review, 67(3), 511-526.

Mohamed, I. A., Evans, K., & Tirimba, O. I. (2015). Analysis of the Effectiveness of Budgetary Control Techniques on Organizational Performance at Dara-salaam Bank Headquarters in Hargeisa Somaliland. International Journal of Business Management and Economic Research, 6(6), 327-340.

Oluwalope, A. A., & Sunday, O. (2017). Impact of Budgetary Participation and Organizational Commitment on Managerial Performance in Nigeria. Accounting and Finance Research, 6(3), 48-55.

Otely, D. T. (1978). Budget Use and Managerial Performance. Journal of Accounting Research, 16(1), 122-149.

Parry, T.R. (2007). The role of fiscal transparency in sustaining growth and stability in Latin America (No. 07/220). International Monetary Fund.

Ronen, J., & Livingstone, J. L. (1975). An Expectancy Theory Approach to the Motivational Impacts of Budgets. The Accounting Review, 50(4), 671-685.

Shearon, W. T., & Frucot, V. (1991). Budgetary Participation, Locus of Control, and Mexican Managerial Performance and Job Satisfaction. The Accounting Review, 66(1), 80-99.

Stedry, A. C. (1964).Budgeting And Employee Behavior: A REPLY. The Journal of Business, 37(2), 195-202.

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My Assignment Help. 'Budgeting's Impact On Managerial Performance In Caltex: An Essay.' (My Assignment Help, 2021) <https://myassignmenthelp.com/free-samples/acc706-accounting-issues-and-theories/budgeting-research.html> accessed 05 March 2024.

My Assignment Help. Budgeting's Impact On Managerial Performance In Caltex: An Essay. [Internet]. My Assignment Help. 2021 [cited 05 March 2024]. Available from: https://myassignmenthelp.com/free-samples/acc706-accounting-issues-and-theories/budgeting-research.html.

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