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:
“The insidiousness of science lies in its claim to be not a subject, but a method. You could ignore a subject; no subject is all-inclusive. But a method can plausibly be applied to anything within the field of consciousness.”
—Katharine Fullerton Gerould (1879–1944)
“I assure you that in our next class we will concern ourselves solely with the history of Egypt, and not with the more lurid and non-curricular subject of living mummies.”
—Griffin Jay, and Reginald LeBorg. Prof. Norman (Frank Reicher)
“I know no subject more elevating, more amazing, more ready to the poetical enthusiasm, the philosophical reflection, and the moral sentiment than the works of nature. Where can we meet such variety, such beauty, such magnificence?”
—James Thomson (1700–1748)