Definition of Management

 Definition of Management

It is very difficult to give a precise definition of the term ‘management’. Different scholars from different disciplines view and interpret management from their own angles. The economists consider management as a resource like land, labor, capital and organization. The bureaucrats look upon it as a system of authority to achieve business goals. The sociologists consider managers as a part of the class elite in the society.

The definitions by some of the leading management thinkers and practitioners are given below:

Management is the art of knowing what you want to do and then seeing that it is done in the best and cheapest way. —F.W. Taylor

To manage is to forecast and to plan, to organize to command, to coordinate and to control.       —Henry Fayol

Management is guiding human and physical resources into dynamic organizational units which attain their objectives to the satisfaction of those served and with a high degree of morale and sense of attainment on the part of those rendering service. —American Management Association


Management is a multipurpose organ that manages a business and manages Managers and manages Workers and work. —Peter Drucker

Lastly we can say that, Management is a distinct process consisting of planning, organizing, actuating and controlling performed to determine and accomplish the objectives by the use of people and resources.

Definition of Leadership

 Definition of Leadership

In a short Leadership can be defined as a group of abilities, attributes and qualities that assist individuals in moving forward to achieve a shared vision.

According to Peter Drucker-"The only definition of a leader is someone who has followers."

According to John C Maxwell-"leadership is influence – nothing more, nothing less."

According to Robert Taylor-“Leadership is the ability to get a group of persons to achieve what they cannot do individually.”

Lastly we can say that- Leadership is the ability engage, inspire, and motivate others towards accomplishing shared visions and goals.

Objectives of Management Accounting

 Objectives of Management Accounting

Posted by Muhammad Jakirul Haque Talukder on |

A. The base objectives of management accounting are to assist the management in carrying out its duties efficiently. The objectives of Management Accounting are: -
• The computation of plans and budgets covering all aspects of the business. Example: production, selling, distribution, research and finance.
• The systematic allocation of responsibilities for implementation of plans and budgets.
• The organization for providing opportunities and facilities for performing responsibilities.
• The analysis of all transactions, financial and physical, to enable effective comparison to be made between the forecasts and actual performance.
• The presentations of up to date information, at frequent intervals, to management in the form of operating statements.
• The statistical interpretation of such statements in a manner which will be of utmost assistance to management in planning future policy and operation.

B. The fundamental objectives of management accounting is to enable the management to maximize profits or minimize losses. The evolution of management accounting has given an approach to the function of accounting. The main objectives of management accounting are as follows:

1. Planning and policy formulation:
Planning involves forecasting on the basis of available information, setting goals; framing polices determining the alternative courses of action and deciding on the program of activities. Management accounting can help greatly in this direction. It facilitates the preparation of statements in the light of past results and gives estimation for the future.

2. Interpretation process:
Management accounting is to present financial information to the management. Financial information is technical in nature. Therefore, it must be presented in such away that it is easily understood. It presents accounting information with the help of statistical devices like charts, diagrams, graphs, etc.8

3. Assists in Decision-making process:
With the help of various modern techniques management accounting makes decision-making process more scientific. Data relating to cost, price, profit and savings for each of the available alternatives are collected and analyzed and provides a base for taking sound decisions.

4. Controlling:
Management accounting is a useful for managerial control. Management accounting tools like standard costing and budgetary control are helpful in controlling performance. Cost control is affected through the use of standard costing and departmental control is made possible through the use of budgets. Performance of each and every individual is controlled with the help of management accounting.

5. Reporting:
Management accounting keeps the management fully informed about the latest position of the concern through reporting. It helps management to take proper and quick decisions. The performance of various departments is regularly reported to the top management.

6. Facilitates Organizing:
“Return on Capital Employed” is one of the tools of management accounting. Since management accounting stresses more on Responsibility Centers with a view to control costs and responsibilities, it also facilitates decentralization to a greater extent. Thus, it is helpful in setting up effective and efficiently organization framework.

7. Facilitates Coordination of Operations:
Management accounting provides tools for overall control and coordination of business operations. Budgets are important means of coordination.

Who are the external users of Accounting?

 Who are the external users of Accounting?



Accounting information helps users to make better financial decisions. Users of financial information may be both internal and external to the organization.

External users of accounting information include the following:

    Creditor: for determining the credit worthiness of the organization. Terms of credit are set according to the assessment of their customers' financial health. Creditors include suppliers as well as lenders of finance such as banks.
    Tax Authourities: for determining the credibility of the tax returns filed on behalf of the company.
    Investors: for analyzing the feasibility of investing in the company. Investors want to make sure they can earn a reasonable return on their investment before they commit any financial resources to the company.
    Customers: for assessing the financial position of its supplier which is necessary for a stable source of supply in the long term.
    Regulatory Authorities: for ensuring that the company's disclosure of accounting information is in accordance with the rules and regulations set in order to protect the interests of the stakeholders who rely on such information in forming their decisions.


External users are communicated accounting information usually in the form of financial statements. The purpose of financial statements is to cater for the needs of such diverse users of accounting information in order to assist them in making sound financial decisions.

Define Management accounting.

 Define Management accounting.

Management accounting is concerned with the provisions and use of accounting information to managers within organizations, to provide them with the basis in making informed business decisions that would allow them to be better equipped in their management and control functions. Unlike financial accountancy information, management accounting information is used within an organization “typically for decision-making” and is usually confidential and its access available only to a select few.

According to the Chartered Institute of Management Accountants (CIMA)
“Management Accounting is the process of identification, measurement, accumulation, analysis, preparation, interpretation and communication of information used by management to plan, evaluate and control within an entity and to assure appropriate use of and accountability for its resources. Management accounting also comprises the preparation of financial reports for non-management groups such as shareholders, creditors, regulatory agencies and tax authorities.

The American Institute of Certified Public Accountants (AICPA) states that management accounting practice extends to the following three areas:
• Strategic Management— advancing the role of the management accountant as a strategic partner in the organization.
• Performance Management— developing the practice of business decision-making and managing the performance of the organization.
• Variable costing— contributing to frameworks and practices for identifying, measuring, managing and reporting risks to the achievement of the objectives of the organization.

The Institute of Certified Management Accountants (ICMA) states -"A management accountant applies his or her professional knowledge and skill in the preparation and presentation of financial and other decision oriented information in such a way as to assist management in the formulation of policies and in the planning and control of the operation of the undertaking."

Management Accountants therefore are seen as the - "value-creators" amongst the accountants. Management accounting knowledge and experience can therefore be obtained from varied field sand functions within an organization, such as information management, treasury, efficiency auditing, marketing, valuation, pricing, logistics, etc.

Cash Prizes for Securing the Highest Marks

 Cash Prizes for Securing the Highest Marks

The cash prizes will be awarded to the candidates for securing the highest marks in individual subjects and completing the JAIBB and DAIBB Examination, as the case may be as indicated below : -

	Name of Banks	Amounts of prizes	Subjects and passing of JAIBB or DAIBB Examination
(i)	Janata Bank Ltd	Three prizes of   Tk.6,000.00                Tk. 10,000.00       Tk. 10,000.00	for securing highest marks in                (i) Law & Practice of Banking (JAIBB)       (ii) Management of Financial Institutions (DAIBB) (iii) Lending Operation & Risk Management (DAIBB)
(ii)	Agrani Bank Ltd	Two prizes of Tk. 6,000.00       Tk. 10,000.00	for securing highest marks in                          (i) Accounting for Financial Services (JAIBB)     (ii) Central Banking & Monetary Policy (DAIBB)
(iii)	Rupali Bank Ltd.	One prize of Tk. 10,000.00	for securing highest marks in        International Trade and Foreign Exchange (DAIBB)
(iv)	Bangladesh Krishi Bank	One prize of  Tk. 10,000.00	for securing highest marks in Agriculture & Micro finance (DAIBB)
(v)	Bangladesh Shilpa Bank	One prize of Tk. 10,000.00	for securing highest marks in SME & Consumer Banking (DAIBB)
(vi)	Pubali Bank Ltd.	One prize of  Tk. 10,000.00	for securing highest marks in Treasury Management (DAIBB)
(vii)	Uttara Bank Ltd.	One prize of  Tk. 10,000.00	for securing highest marks in  Management Accounting (DAIBB)
(viii)	Arab Bangladesh Bank Ltd.	One prize of   Tk. 6,000.00	for securing highest marks in  Principles Economics & Bangladesh Economy (JAIBB)
(ix)	Jamuna Bank Ltd.	One prize of  Tk. 6,000.00	for securing highest marks in Marketing of Financial Services (JAIBB)
(x)	National Bank Ltd.	One prize of    Tk. 6,000.00	for securing highest marks in  Business Communication (JAIBB)
(xi)	Standard Chartered Bank	One prize of   Tk. 6,000.00	for securing highest marks in Information Technology in Financial Services (DAIBB)
(xii)	BASIC Bank Ltd.	One prize of Tk. 6,000.00	for securing highest marks in  Principles of Management (JAIBB)
(xiii)	Investment Corporation of Bangladesh	One prize of  Tk. 10,000.00	for securing highest marks in Investment Banking (DAIBB)
(xiv)	Al-Arafah Islami Bank Ltd.	One prize of Tk. 10,000.00	for securing highest marks in Islamic Banking (DAIBB)

The minimum qualifying marks for award of cash prizes for standing first in individual subjects and passing the examination (JAIBB or DAIBB, as the case may be) are 60%.

Short Note

 Short Note

1. Gold Standard

Gold Standard monetary system in which a country's government allows its currency unit to be freely converted into fixed amounts of gold and vice versa. The exchange rate under the gold standard monetary system is determined by the economic difference for an ounce of gold between two currencies. The gold standard was mainly used from 1875 to 1914 and also during the interwar years.


The use of the gold standard would mark the first use of formalized exchange rates in history. However, the system was flawed because countries needed to hold large gold reserves in order to keep up with the volatile nature of supply and demand for currency. After World War II, a modified version of the gold standard monetary system, the Bretton Woods monetary system created as its successor. This successor system was initially successful, but because it also depended heavily on gold reserves, it was abandoned in 1971 when U.S President Nixon "closed the gold window."

2.  SWIFT and SWIFT Code

SWIFT

Society for Worldwide Interbank Financial Telecommunications. Global communication network that facilitates 24-hour secure international exchange of payment instructions between banks, central banks, multinational corporations, and major securities firms. A member owned cooperative organized in 1977 under Belgium law, it now includes over 6,500 participating members from more than 180 countries which together process in excess of a billion messages every year (about 300 million messages every day).

SWIFT Code

Society for Worldwide Interbank Financial Telecommunication code. An internationally-recognized identification code for banks around the world. SWIFT codes are most commonly used for international wire transfers and are comprised of 8 or 11 alphanumeric characters. The International Organization of Standardization (IOS) was the authoritative body that approved the creation of SWIFT codes.

3.  Bill of Entry

A bill of entry is a formal declaration describing goods which are being imported or exported. The bill of entry is examined by customs officials to confirm that the contents of a shipment conform with the law, and to determine which taxes, tariffs, and restrictions may apply to the shipment. This document must be prepared by the importer or exporter, with many companies hiring a clerk specifically to handle the process of preparing bills of entry.


A typical bill of entry includes a description of the goods in the shipment, including details and the quantity of the goods, along with an estimate of their value. Customs officials reserve the right to inspect the shipment to determine whether or not it is consistent with the bill of entry, and discrepancies can be grounds for legal proceedings. Once a bill of entry has been reviewed and the shipment has been inspected, it can be cleared for sale or transfer. If there is a problem, customs may opt to confiscate the goods.

Many nations have specific laws about how bills of entry should be formatted and presented. It is important to have accurate documentation, or goods can be held up in customs. This can cause an inconvenience in some cases, and spoilage or destruction of the goods in others; a shipment of fruit, for example, will not hold up through a lengthy retention by customs while details of the shipment are worked out.


4. Definition of Foreign Direct Investment

Foreign Direct Investment refers to the investment done by a foreign individual or corporation in a country with the purpose of having an influence over the development of a firm’s long term strategy. This type of investment may also be referred as productive investment, as it is done in companies that are part of productive sectors of a country, be it industrial, financial or services.

According to the International Monetary Fund, “direct investment reflects the aim of obtaining a lasting interest by a resident entity of one economy (direct investor) in an enterprise that is resident in another economy (the direct investment enterprise). The “lasting interest” implies the existences of a long-term relationship between the direct investor and the direct investment enterprise and a significant degree of influence on the management of the latter”.