The sources and uses cash are similar those the statement cash flows
Reflective Journal
During the tenure of my course, the first topic focussed on the understanding of the Performance Control Systems and how they can be applied in an organisation. It also bridged the relation between the Performance Control System and the effective applicability of Internal Controls in an organisation. I learned about various aspects of Management Control System and how it operates through Responsibility Management. A responsibility center is an organizational unit whose manager has been assigned the responsibility of managing a portion of the organization’s resources. The responsibility centers are controlled by the management and they set goals for the same so as to achieve the ultimate organization’s objectives. In a hotel business, the Responsibility Centers are responsible for carrying out the tasks as per their jurisdiction such as special skills, customer management, catering etc. I also learned that there are basically two types of accountings are done: Management Accounting and Responsibility Accounting. According to Needles, Powers and Crosson (2011, p. 1021), ‘responsibility accounting is an information system that classifies data according to areas of responsibility and reports each area’s activities by including only the revenue, cost, and resource categories that the assigned manager can control.’ According to Needles, Powers and Crosson (2011, p. 1021), Management accounting deals with information primarily for the use of people inside the organization. Further I learnt, that the Management accounting uses the Cost Accounting and Management Control for effective utilization of the resources in the business.
Rationalization is when an individual thinks they are justified because they are underpaid, or it’s for their family, or they need it now but they’ll pay it back before anyone notices. The individual justifies the crime in a way that makes it an acceptable or justifiable act.
Opportunity is created when there are weaknesses in controls. Individuals think they won't get caught because nobody is reviewing their work.
Conclusion: The whole study made me learn more about the hotel business, its vital and core areas to focus on and how the management of resources can lead to good results. This reflection is the summary of the experiences I had while studying and the learnings I had from the classes.
