Accounting, Behavior, and Organisations Essay Sample
This essay sample on Accounting, Behavior, and Organisations for Singapore students. Here we will discuss What is accounting behavior and Organisation?, Influence of accounting information on the behavior, Types of accounting information, Ethics in accounting behavior, etc.
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Introduction- Accounting, Behavior, and Organisations Essay
Accounting behavior and Organisations, this is a quite important as well we relatively new discipline in the field of accounting. But you must be asking how is accounting related to behavior? Good question, we shall be answering this question in this sample essay. Moreover, we shall be providing all the necessary information related to the topic.
As it is an important topic for the students, we shall try to provide the clearest picture possible. For the same reason, we shall be dividing the sample essay into different sections. This will help the reader understand the topic better and easier.
Furthermore, we shall be starting with a definition of accounting behavior and organization. Reason being that it is important to understand before moving any further. Regardless, we shall be discussing all the other aspects later on in the essay, So without further adieu:
Main body- Accounting, Behavior, and Organisations Essay
What is accounting behavior and Organisation?
The term “Accounting behavior” refers to a branch of accounting that works in close relation to behavioral science or social sciences. It is more commonly referred to as Behavioral accounting. This means that it applies aspects of social science to certain functions of accounting. For instance, Budgeting, control, decision-making, reporting, among others.
Moreover, it aims to improve the conventional accounting approaches where human elements such as perceptions, values, ethics, attitudes, are neglected. This sub-discipline is a fairly new concept in contrast to its parent field. The main focus of this field of study is the “human element” in accounting practices. The reason being that Accounting practices in an organizational setting are highly influenced by human behavior. We will look into this statement later on.
Moving on, we shall be looking at how accounting information influences a person’s behavior, in the next section of the sample essay.
Influence of accounting information on the behavior
Accounting is considered to be the most formal source of information in the realm of industrial organization. In addition, this information is used by all levels of management for decision-making processes.
Accounting information mainly affects the decision-making processes. Furthermore, there are three types of people who make a decision using this information. These are, as mentioned below:
- The top management of an organization prepares financial reports. These people are also responsible for managing the accounting systems as well as the presentation of financial reports.
- Decision-makers who manage activities but do not concern with financial reporting. They do not concern directly with the financial system or reporting.
- People who are not part of the firm but for a reason or another influence the environment of the firm indirectly.
Types of accounting information
Due to the vast and complex nature of accounting, there are different types of accounting information. Accounting information can be of two types. These are:
- Financial accounting information
- Non-financial accounting information
Moreover, financial information is quantitative, whereas its counterpart includes both quantitative as well as qualitative information. In addition to this, the latter plays an important role in structural decision-making. In contrast to this, nonfinancial information is more useful in unstructured decisions.
Ethics in accounting behavior
Here, we shall be looking at the ethics in accounting behavior. Usually, terms like ethics do not sound familiar in the field of accounting. However, accounting behavior concerns the human elements in accounting, and human decision-making requires ethical values.
These are, as mentioned below:
- Ethical sensitivity
- Judgment based on ethical values
- Ethical intention
- Behavioral ethics
In this essay, we have explored the different aspects and looked at how accounting information influences behaviour in organisations. The level of influence will depend on various factors such as type of accounting information used and its ethical implications etc. As a student, it is important to understand these principles so that you can make informed decisions when studying or working with accounting materials in your future career. Accounting behavior is one aspect which every organisation needs to consider before making any decision because they affect all areas of an organization’s operations from finances to human resources management etc.
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