Sunday, February 9, 2020

Describe the perceived roles and involvements of management accounting Essay

Describe the perceived roles and involvements of management accounting in supporting the decision process within the Union Carbide Pesticide Plant prior to the disaster; - Essay Example Such was the extent too great that when a week after that more than 8000 other people died with gas related ailments which were also attributed to the disaster in the same period (Ingrid 2001). Some of the main management accounting issues that can be learnt from this prior to the disaster happening can mainly be attributed the fact that the courts found the management of the UCIL(Union Carbide India Limited), the parent company responsible to be liable for negligence. This lead to their ligation and consequently finding the ex-employees liable for negligence fining them $2000 each (BBC News,2010). There were a number of cost management issues that could be identified prior to the disaster. Ingrid (2005) notes that prior to the happening of the disaster, the demand for pesticides that are made from the gas had fallen. This is said to have attributed to the build up of the gas within the firm as there was reduced use of the gas for the pesticides’ manufacure. However, the firm could not reduce the amount they were manufacturing could be mainly be associated with the break even cost of the manufacturing. Manufacturing less as per the requirement at that time could have to increased cost and thus the company decided to continue producing at that that higher rate even when less of the gas was required. Ingrid (2006) says that prior to the disaster, there had been two trade unions who had been quoted to have been complaining about the pollution within the plant. This means that the plan had not put in place a proper waste and anti pollution policies within the plan. The result had been a worker losing life after the employee was splashed with phosgene while at work. Pollution management within any organization should be planned for and costed for by the management within the organization. While it is a cost that many organizations may

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