Write a Reflective essay on the Personal Development Plan.
Management accounting is an important module that helps an individual to understand the difference between the financial and management accounting (Horngren and Horngren 2012). Therefore, Management accounting has helped me in the process of making a decision regarding any commercial activities that take place in my current workplace. It helps the managers by providing information. As I am an employee in an organization, the management accounting also provides me with various data and information that contribute to understanding the resources of the organization and also to use them effectively and efficiently for the betterment of the firm. Finally, it can also be said that the management accounting helps in increasing the revenue and size of an organization (Seal, Garrison and Noreen 2012). In this assignment the method by which I learn the module of management accounting, my prior perception about the subject, my present awareness, the familiarity of the primary concepts and themes of the module and my area of interest have been analyzed in detail. In addition to this, the processes by which I implement the managerial and financial accounting concepts in my present workplace for doing my work in an easy way have also been discussed.
Personal Development Plan Analysis
Prior and Current Knowledge
Previously I did not have a clear conception about the management accounting and financial accounting, but now I have a clear understanding of both the topics and I also know the key difference between the two. The Financial Accounting deals with the past and present information, whereas the management accounting deals with the future situation of an organization and supplies financial reporting which help a firm in planning and making proper decisions (Horngren, Harrison and Oliver 2012). The importance and the implementation of the management accounting were previously unknown to me, but now these are familiar to me. So I can implement it and can understand the financial situation of a firm to suggest any decision for the betterment of the organization. The topics like – break-even analysis, margin analysis, constraint analysis, inventory evaluation, target costing and ratio and trend analysis of managerial accounting are the most interesting area to me. On the other hand, the topics like – balance sheet preparation, other financial statement preparations, taxation, acquiring knowledge about the financial accounting standards board, financial audits and preparation of financial reports of financial accounting are the most interested topics to me.
Experience of Module’s Key Concepts and Themes
The module’s key concepts and themes include – learning about the process or method by which the managerial accounting information can help a firm to use its resources effectively and efficiently and the process of making important decisions for the company (Epstein and Lee 2012). This module also helped me in gaining knowledge about the role of the managerial accounting in increasing the size and the revenue of the firm. I also learned that the proper implementation of managerial accounting within an organization helps it to earn a higher amount of profit as the income of the company increases. Personal development plan (PDP) involves managing the human resource capital of a particular company. Along with managing the financial aspects of a company, management must look after the satisfaction level of their employee because if employees leave an organization, then human capital is also said to be moving. I have applied the studied concepts and theories of the coursework in my workplace, and this has helped me to fulfill my job responsibilities within the workplace quickly. Moreover, the studied concepts of the managerial and financial accounting will also help me in my personal investment and also in my future business as I can distinguish well between the managerial and financial accounting information and I can also understand the basic concepts of these accountings.
Area of Interest
My area of interest in this module of management accounting is the process of implementing the concepts of managerial accounting to increase the revenue of the firm. This process has created a curiosity within me, and thus I collect and use the data of various organizations to analyze its financial condition. Also, I check on the efficiency and productivity of the employees, and if any problem is faced by the employees, then proper training and incentives for good performance are given to them then to cope up with the changing needs of the corporate culture.
Previous Personal Biases and Assumptions about Key Module Topics
Previously I did not know the various importance and implementations of the managerial accounting within a firm. But now I have learned from this module the process of implementing the managerial accounting within an organization. I have also learned the process of making the decision regarding the financial condition of a firm based on the financial analysis. Previously I did not focus on the motivational factors of which may be either internal or external. However, now I understand that for implementing the organizational objectives successfully, employees' motivation is a major factor. Internal motivation comes from the inside biases of an individual which cannot be influenced by external sources whereas the positive effect on external motivation can be implemented by proper remuneration, benefits, and incentives to employees.
Change in Conception about Key Module Topics
Earlier I did not have any clear or distinct idea and conception about the subject. However, this module has provided me with a clear conception and understanding on managerial accounting. More research and study on the particular module and topic have helped me to change my previous conception and has also raised interest within me about the subject. Previously good remuneration and incentives used to motive the employees but with the changing needs job security, behavior and frequent policy changes of the management also affects the accretion rate of the employees. As the change in the conception took place after studying the coursework, I applied the studied theories and concepts in my workplace. The systematic method of calculation and application of the concepts have made my job role easier.
Current Practices Related to Key Module Topics
The current key module includes various topics, and I have founded that most of the topics are useful for me as I implement them in my workplace for making the job easier. Firstly, the knowledge of comparing between the financial accounting data and the management accounting information systems helps me to differentiate the type of information that I gathered within my workplace (Drury 2012). Secondly, the knowledge of critical evaluation of the importance of cost structures, differences between various types of cost structures, various types of costing systems and cost structures help me in managing the resources of the particular workplace. Thirdly, the features of variable and fixed costs also help me in my workplace. Fourthly, the break-even point and operating gearing calculations also guide me in my job role, and critical evaluation of the advantages and drawbacks of the CVP analysis and break-even analysis also help me personally in doing my job. Fifthly, an in-depth knowledge of the intellectual capital is an essential factor for doing my job successfully.
Personal Development Strategies
I have planned to start my own business after few years when I can implement all my theoretical knowledge of this coursework. This business will help me to learn and distinguish between the theoretical knowledge and practical knowledge (Brewer, Garrison and Noreen 2013). Thus, the knowledge that I gained from the coursework and the experience that I am recently gaining by doing the job will help me in future in all respect i.e. in calculating and understanding both the financial and managerial accounting.
Therefore, it can be concluded that the particular module of management accounting plays a vital role in my personal life. This knowledge helps me in doing my current job and also guides me in personal finances. This module helped me to have a clear idea and perception regarding the subject. Previously I had many wrong perceptions regarding the implementation and usage of the managerial accounting. But this course has helped me to develop my perceptions and understanding regarding this subject and thus it helps me in fulfilling my responsibilities in my workplace. In addition to this, the particular module of managerial accounting has changed my conception about the practical application of the theories and concepts of financial and managerial accounting.
Brewer, P., Garrison, R. and Noreen, E. 2013. Introduction to managerial accounting. New York: McGraw-Hill/Irwin.
Drury, C. 2012. Management and cost accounting. Andover: Cengage Learning.
Epstein, M. and Lee, J. 2012. Advances in management accounting. Bingley: Emerald.
Horngren, C. and Horngren, C. 2012. Management accounting. Toronto: Pearson Canada.
Horngren, C., Harrison, W. and Oliver, M. 2012. Accounting. Upper Saddle River, N.J.: Pearson Prentice Hall.
Seal, W., Garrison, R. and Noreen, E. 2012. Management accounting. London: McGraw-Hill Higher Education.