Social Construction of Accounting Profession †MyAssignmenthelp.com

Question: Discuss about the Social Construction of Accounting Profession. Answer: Introduction: Accounting is a methodical process of identifying the financial information than recording it into the books of the company further measuring the financial information and classifying it into the various categories, more, verifying it, summarizing it, interpreting the information and communicating the financial information with the user of the reports. These reports reveal the performance, position and profitability state of the company. Further, it explains about the financial strength and various other positions of the company (Hk et al, 2012). This accounting process helps the company to manage the financial and accounting data of the company so that the performance and the position of the company could be evaluated and controls could be implemented over the financial stability of the company. Further, the advantages and disadvantages of the accounting have been analyzed. The main advantages of the accounting are its quick decision process. This process reveals the financial information to the business. It helps the investors to make a better decision about the investment into the business (Lee, 2006). Additionally, the disadvantages of this accounting system are its high cost which is especially for the long business. There are also timing issues in the accounting system as the different accounting methods take the concern of the various timing. It is also riskier for the business to choose the best accounting methods. Managerial decision making: The given statement depict about the various business decision making steps. It depict that it is not an easy task for the managers to identify and evaluate the best strategy for the business. This statement depict that the process of decision making starts from the identification of various decision alternatives. Further, the qualitative and quantities research is done over all the alternatives to identify the best one. Qualitative issues of each alternatives are identified through this process to analyze the further issues and the problems which could be arisen through the alternative decisions (Brealey, Myers and Marcus, 2007). More, the findings are analyzed to evaluate the best of the alternatives. For analyzing the best result, qualitative and quantities factors are also analyzed and the best alternative has been chose. This process depict that a manager is required to be extra attentive at every step of the decision making process to make the performance and position of the company more profitable. Further, it depict that the managers are required to have knowledge about the research and they must also aware about the internal and external position of the business so that an effective result could be got (Davies and Crawford, 2011). A manager must look over the various position and the factors of each decision alternative and must evaluate all the alternatives on the basis of the standards so that it becomes easy for them to evaluate the position of the company. Thus it has been analyzed that it is an important and crucial process for the managers as well as the business to evaluate the alternatives and make a better decision for the betterment of the business. References: Brealey, R., Myers, S.C. and Marcus, A.J., 2007. FundamentalsofCorporate Finance. Mc Graw Hill, New York. CORREIA, 2013. Financial Management. 7th Edition. Cape Town: Juta andCompany Ltd.2. Davies, T. and Crawford, I., 2011. Business accounting and finance. Pearson. FIRER, 2012. Fundamentals of Corporate Finance. 5th Edition.Berkshire.McGraw-Hill Companies, Inc. Hk, T., Moldan, B., and Dahl, A. L. (Eds.)., 2012. Sustainability indicators: a scientific assessment (Vol. 67). Island Press. Hines, R.D., 2011. Financial accounting knowledge, conceptual framework projects and the social construction of the accounting profession. Accounting, Auditing Accountability Journal, 2(2). Lee, T.A., 2006. The FASB and accounting for economic reality. Accounting and the Public Interest, 6(1), pp.1-21.