As the negative impact of economic crisis, many countries experienced a hardship during these years. On October 1, 2013, the United States federal government entered a government shutdown, forcing furloughs of 800,000 workers and suspension of services not exempted by the Anti-deficiency Act.
Actually, this is not the first time that the U.S. government had shutdown. Moreover, the reason for it is essentially similar—- the government budget balance, especially its financial deficit. As a management of a country, it should pay large attention to its management accounting. Specifically, management accounting is concerned with the provisions and use of accounting information to managers within organizations, to provide them with the basis to make informed business decisions that will allow them to be better equipped in their management and control functions. It focuses on the future. Also, it predicts the future and helps with making decisions and improving the performance of the organization based on logical statistics. Thus, if U.S. government had done well in management accounting, they would forecast what would happen in the future and avoid the government shutdown which leads to a huge loss of taxpayers and the negative impact on the whole society.
To conclude, management accounting is of crucial importance for organization. A organization, especially the one as big as U.S. government, cannot run well without it.
Reference
- United States federal government shutdown of 2013. From Wikipedia, the free encyclopedia.
http://en.wikipedia.org/wiki/United_States_federal_government_shutdown_of_2013
- Management accounting. From Wikipedia, the free encyclopedia.
http://en.wikipedia.org/wiki/Management_accounting