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Introduction:
To better understand differences between many similar types of terms in accounting such as management accounting and financial accounting, management control and financial control and strategic management accounting we will explore the case study of TNT and how the company has been able to implement these important concepts practically in this case.
Firstly, we will see how the management and financial controls were used in order to achieve what Taylor say’s is Critical Mass. We will also see how efficient and effective Taylor was in utilizing his resources given the limited number of employees and the outsourcing of his production to save underutilization costs.
Secondly, we will examine the spreadsheet which was flexible enough to alter according to the changing needs, of which Taylor had made good use of, by making a model which has all the elements programmed in it, which assisted Taylor in decision making and forecasting sales, which resulted into preplanning for the future.
Lastly, we will see in the later part of the report, that there are many other situations where TNT has made good use of the models such as Porter’s five forces and Value chain analysis.
“Management control is plan of organization, methods and procedures adopted by management to ensure that its goals are met whereas financial control involves management of a firm's costs and expenses in relation to budgeted.
Management controls include processes for planning, organizing, directing, and controlling program operations. Financial Control include comparison of what you have actually achieved with what you have planned in your budget and as such it is one business function amongst ma ...