Transaction Cost Economics and Evolutionary Theories. Compare and Essay

Transaction Cost Economics and Evolutionary Theories. Compare and Contrast. (See Assignment Criteria) - Essay ExampleManagement accounting is concerned in identification and prep of financial and economic in doation to managers within the governing body to enable them make proper decisions, maintain control over business operations, monitor budgets and profit writ of execution and direct the organisation to success in the future.1Management accounting is crucial for planning and the process of problem solving such as determining the intimately cost effective method of performance, it is too important in that it involves the development of budgets that help in the forecasting on future production cost and levels of production and profits.Management accounting involves the preparation of budgets that aid in planning, coordination of the activities of various departments, budgets provide a means of communicating the organisations goals and plans, they act as motivation tools and t hey act as a tool of control where actual and activities are compared with the budget and any deviations are investigated and corrective actions undertaken.Transaction cost economics studies organisations in a musical mode that different institutional arrangements are considered alternative ways of organising economic activities.3Transaction cost economics explains why certain transactions are associated with a certain form of organisation whereas other transactions are associated with other forms of organisation specific institutional arrangements are chosen to govern specific transactions because they offer apparent sets of control devices which other forms do not offer, therefore institutional forms differ in their ability to solve problems and the form of control they offer.4Evolutionary theory also referred to as the old institutional economics as Foss (1994) defined it, this theory tends to investigate the possibility of transforming the already existing structures of organi sations, therefore the evolutionary theory observes organisation forms as having emerged from the already existing