Subject
As a part of the management accounting system and function, managerial risk accounting has the following two main purposes:
- decision-facilitating or decisions-making
- decision-influencing or stewardship
These purposes are achieved by providing respectively relevant information to improve the ability and willingness of the employees to achieve the organisations’s goals and objectives. For the purpose of decision facilitation, decision makers should be provided with an accounting representation of the state-act-outcome set of the decision. Especially, it is necessary to provide statements concerning the likelihood or probability of states and outcomes. For the purpose of stewardship, it is necessary to provide information on the risks taken and their relation to the risk bearing capability of organisation as well as their relationship to the return generated.
Read more about this topic: Managerial Risk Accounting
Famous quotes containing the word subject:
“This letter will be delivered to you by my child,—the child of my adoption,—my affection! Unblest with one natural friend, she merits a thousand. I send her to you innocent as an angel, and artless as purity itself; and I send you with her the heart of your friend, the only hope he has on earth, the subject of his tenderest thoughts, and the object of his latest cares.”
—Frances Burney (1752–1840)
“At first I intended to become a student of the Senate rules and I did learn much about them, but I soon found that the Senate had but one fixed rule, subject to exceptions of course, which was to the effect that the Senate would do anything it wanted to do whenever it wanted to do it.”
—Calvin Coolidge (1872–1933)
“When a subject is highly controversial ... one cannot hope to tell the truth. One can only show how one came to hold whatever opinion one does hold. One can only give one’s audience the chance of drawing their own conclusions as they observe the limitations, the prejudices, the idiosyncrasies of the speaker.”
—Virginia Woolf (1882–1941)