Managment Accounting Essay Example | Topics and Well Written Essays - 2000 words

Managment Accounting - Essay Example It can be viewed that the business models adopted in the visual arts sector in the nation are relatively inefficient due to inadequate financial support. In this regard, almost every visual arts sector is seemed to be undercapitalized. The arts sector is facing ample challenges to retain a sustainable performance in this competitive business environment. In this context, the major challenges that face by arts sector in England include cultural aspects, free entry strategy and inability in tackling factors that are accountable for under performance. The sector has been facing the aforementioned challenges mainly due to limited investment of funds and inappropriate allocation of financial resources (Royce, 2011). In relation to the arts sector of England, it can be viewed there is a lack of income which is generated from the entry tickets due to the provisions of free entry. Free entry of visitors in relation to this sector is often regarded as a blessing for public, but this practical implication has led towards inadequate public funding. In this respect, these organisations are more inclined towards incompetency and inefficient performance in the present competitive business environment. Consequently, inadequate availability of public funding has restricted the organisations associated with arts sector in allocating funds for development, maintenance and repair. It can be affirmed that the implication of free entry will be effective in attracting a huge number of customers, but will not facilitate the organisations to obtain adequate funds for complying with future requirements and making greater development. Respectively, the organisations, with inadequate revenues will be unable to meet the requirements of the business costs. Moreover, the... This paper descusses from the above discussion, it can be affirmed that the present business scenario is incessantly changing due to gaining momentum of globalisation and prevalence of extreme business market competition. In this changing business market conditions, organisations are required to develop appropriate strategies and plans in order to maintain sustainable growth and performance. The arts sector in England is surrounded with certain threats that include operational inefficiency and ineffective allocation of financial resources within the context of competitive business environment. In this regard, this sector should adopt efficient business models with the objectives of performing in a sustainable way. In relation to the arts sector of England, it can be viewed there is a lack of income which is generated from the entry tickets due to the provisions of free entry. Free entry of visitors in relation to this sector is often regarded as a blessing for public, but this practical implication has led towards inadequate public funding. In this respect, these organisations are more inclined towards incompetency and inefficient performance in the present competitive business environment. This report makes a conclusion that management accounting is often viewed to be an important business tool which helps organisations in making better decisions and suitably maintaining financial resources at large. Specially mentioning, the statement of Royce can be identified to hold positive viewpoints about the formation of efficient business models for better management of the arts sector. On the other hand, Taylor holds opposing viewpoints about the need of forming effective business models, as this might increase the complexity of business operations and procedures by a certain degree.