Uncertainty and management accounting: opportunity, profit opportunity and profit / Akira Nishimura
This paper considers the concept of profit in the management cycle, from uncertainty through probability of profit to realization of profit, and reexamines the meanings of profit and risk management in management accounting. As the business management environment becomes more changeable, complicated...
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| Format: | Article |
| Language: | English |
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Accounting Research Institute (ARI)
2011
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| Online Access: | https://ir.uitm.edu.my/id/eprint/10807/1/10807.pdf |
| _version_ | 1796899630166835200 |
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| author | Akira, Nishimura |
| author_facet | Akira, Nishimura |
| author_sort | Akira, Nishimura |
| collection | UITM |
| description | This paper considers the concept of profit in the management cycle, from uncertainty through probability of profit to realization of profit, and reexamines the meanings of profit and risk management in management accounting. As the business management environment becomes more changeable, complicated, and difficult to predict, top leaders in business organizations must more accurately forecast opportunities and risks. Accounting profit tends to be far removed from real-world opportunity. Thus, management accounting that relies on accounting profit can become irrelevant to real business management. This paper reviews the literature on the relationship between uncertainty and profit management with the goal of clarifying the meaning of profit opportunity, which cannot exist without opportunity forecasting and the objective understanding and control of the organizational structure. At the same time, the paper focuses on the importance of continuously paying attention to uncertainty in the business management cycle and the ability of people to perceive risk. The management cycle from opportunity through profit opportunity to realization of profit is presented as a circular model with feed-forward and feedback controls. |
| first_indexed | 2024-03-06T01:23:48Z |
| format | Article |
| id | oai:ir.uitm.edu.my:10807 |
| institution | Universiti Teknologi MARA |
| language | English |
| last_indexed | 2024-03-06T01:23:48Z |
| publishDate | 2011 |
| publisher | Accounting Research Institute (ARI) |
| record_format | dspace |
| spelling | oai:ir.uitm.edu.my:108072022-07-05T02:36:56Z https://ir.uitm.edu.my/id/eprint/10807/ Uncertainty and management accounting: opportunity, profit opportunity and profit / Akira Nishimura apmaj Akira, Nishimura Managerial accounting Profits. Corporate profits This paper considers the concept of profit in the management cycle, from uncertainty through probability of profit to realization of profit, and reexamines the meanings of profit and risk management in management accounting. As the business management environment becomes more changeable, complicated, and difficult to predict, top leaders in business organizations must more accurately forecast opportunities and risks. Accounting profit tends to be far removed from real-world opportunity. Thus, management accounting that relies on accounting profit can become irrelevant to real business management. This paper reviews the literature on the relationship between uncertainty and profit management with the goal of clarifying the meaning of profit opportunity, which cannot exist without opportunity forecasting and the objective understanding and control of the organizational structure. At the same time, the paper focuses on the importance of continuously paying attention to uncertainty in the business management cycle and the ability of people to perceive risk. The management cycle from opportunity through profit opportunity to realization of profit is presented as a circular model with feed-forward and feedback controls. Accounting Research Institute (ARI) 2011-06 Article PeerReviewed text en https://ir.uitm.edu.my/id/eprint/10807/1/10807.pdf Uncertainty and management accounting: opportunity, profit opportunity and profit / Akira Nishimura. (2011) Asia-Pacific Management Accounting Journal <https://ir.uitm.edu.my/view/publication/Asia-Pacific_Management_Accounting_Journal/>, 6 (1). pp. 81-101. ISSN 1675-3194 https://apmaj.uitm.edu.my/index.php/archive |
| spellingShingle | Managerial accounting Profits. Corporate profits Akira, Nishimura Uncertainty and management accounting: opportunity, profit opportunity and profit / Akira Nishimura |
| title | Uncertainty and management accounting: opportunity, profit opportunity and profit / Akira Nishimura |
| title_full | Uncertainty and management accounting: opportunity, profit opportunity and profit / Akira Nishimura |
| title_fullStr | Uncertainty and management accounting: opportunity, profit opportunity and profit / Akira Nishimura |
| title_full_unstemmed | Uncertainty and management accounting: opportunity, profit opportunity and profit / Akira Nishimura |
| title_short | Uncertainty and management accounting: opportunity, profit opportunity and profit / Akira Nishimura |
| title_sort | uncertainty and management accounting opportunity profit opportunity and profit akira nishimura |
| topic | Managerial accounting Profits. Corporate profits |
| url | https://ir.uitm.edu.my/id/eprint/10807/1/10807.pdf |
| work_keys_str_mv | AT akiranishimura uncertaintyandmanagementaccountingopportunityprofitopportunityandprofitakiranishimura |