Decision Making in Managerial Accounting Essay - 2639 Words

Managerial accountants need to use accounting information in seeing to it that they are able to plan, evaluate the company performance, manage risks and control the business operations in a manner that is deemed beneficial to the business as a whole (Caplan, n. d). This can be achieved through: having high standards of ethics in all situations; employing the techniques of management reports, budgetary control, and analysis of fund flows and financial statements; making prudent capital investment decisions; and maintaining continuous quality control systems. The Definition of Managerial Accounting Managerial accounting which is a synonym for management accounting refers to the provision of accounting information to the managerial†¦show more content†¦In the area of operational control, the managers should for instance be able to know the various inputs required at various production stage. This enables them to help the line managers to identify and eliminate any constraint that might come-by thus ensuring a flaw-less production process. Maksoud (2011) asserts that management accounting involve strategic, performance and risk management. The managerial accountant should be a strategic partner within the organization helping in devising strategic plans for the organization. He or she should also see to it that there are frameworks to identify, measure, manage and repot all risks attached to endeavors directed at realizing the goals of the organization. Managerial accountants also prepare financial report for non-management groups such as the shareholders, and regulatory agencies. Ethical Issues in Management Accounting Ethics refers to the moral principles that govern the conduct of human beings (Mcphail, 2010). They draw the difference between what is right and wrong. In the corporate world, maintaining a high level of moral competence is very vital especially when it comes to management accounting. Management accountant achieve ethical competence though formal training in educational institutions, observing theShow MoreRelatedDecision Making With Managerial Accounting1563 Words   |  7 PagesDecision Making with Managerial Accounting Accounting is the process charged with the identification, measurement and the communication of economic information in the aim of allowing the desired users in making the correct decisions and judgments. Accounting has two branches depending on the users. Managerial accounting isuseful to core users unlike financial accounting which is more essential to exterior users. Management accounting is, therefore, the identification, analysis, recordRead MoreDecision Making Techniques in Managerial Accounting876 Words   |  4 PagesManagerial accounting comprises all the financial information needed to help managers make educated decisions and do their job duties efficiently. A typical manager’s responsibilities with managerial accounting include interpreting finance reports and projections and using those to make financial decisions that will affect the company. Since managers have to make routine decisions and finalize reports periodically, it is vital that they a re able to conduct healthy decision making processes andRead MoreTraining And Managerial Accounting For Decision Making801 Words   |  4 PagesIntroduction Many of the lessons learned in FIN 301 (Corporate Finance) and ACCTG 211 (Financial and Managerial Accounting for Decision Making) are evident in everyday life as well as within my internship at Farmers Insurance. This journal entry will focus on two areas where my internship corresponds to the concepts learned in these courses. The first area is the financial services Farmers offers its customers and the second is the financial situation of Farmers Insurance. Financial Services FarmersRead MoreEthical Decision Making on Various Managerial Accounting Issues6054 Words   |  25 PagesJAMAR Vol. 2  · Number 2  · 2004 Ethical Decision Making on Various Managerial Accounting Issues Arnold Schneider* Abstract This study examines five managerial accounting issues that have ethical implications. These issues are based on situations described in managerial accounting textbooks. To induce truthful responses, an approach called the randomized response technique is used. With this technique, estimates are obtained for responses to sensitive questions relating to the five issues. ResultsRead MoreManagerial Accounting1152 Words   |  5 PagesManagerial Accounting 12/3/15 Managerial Accounting Accounting is a crucial part in running a business. There are various forms of accounting that can be used, it is very important to know which technique is best to use for what companies. Once you figure out a particular technique to use, it is important to keep an open mind if there are any changes that need to take place in the business. By keeping an open mind helps the business adjust and be able to make the right decisions. Every businessRead MoreDifference between Financial and Managerial Accounting 637 Words   |  3 PagesThe primary difference between financial and managerial accounting is that financial accounting is used for external members of the company; they do not control or run the businesses’ operations. An example of external members would be customers and shareholders of the business. On the other hand, managerial accounting is used for internal members in the company such as managers and officers. The internal members use managerial accounting to increas e efficiency and effectiveness within their companyRead MoreFinancial Accounting And Managerial Accounting1613 Words   |  7 PagesIntroduction: Both financial accounting and managerial accounting provide important information about the business process. On the one hand, financial accounting provides only financial information to its internal users and external users. On the other hand, managerial accounting basically communicates about financial and non-financial information with internal users such as managers, employees and owners of the company. In other words, managerial accounting provides information to managers who directRead MoreSignificance of Managerial Accounting776 Words   |  3 PagesManagerial accounting and its significance Introduction In the professional education of today, which is inclusive of management accounting education, the universities and colleges are finding problems. The learning institutions have limited resources and also have incapability in making sure students graduate with the necessary knowledge and skill. These two elements are fundamental for the graduates future career decisions. The title managerial accounting has much to do with nurturing accountantsRead MoreBUS 630 Final Paper1617 Words   |  7 PagesDecision Making with Managerial Accounting Managerial accounting is essential for decision making. Making the best choice depends on the managers goals, the anticipated results from each alternative, and the information available when the decision is made (Schneider, 2012). The different techniques associated with managerial accounting are very helpful in the decisions that need to be made. In order to truly understand decision making with managerial accounting one must first discern exactlyRead MoreEssay On The Most Valuable Things Learned1018 Words   |  5 Pagesdata regarding the financial issues of the firm (Vogel, 2014). Making Managerial Accounting decisions In making managerial accounting decisions relevant or applicable to a matter; apposite majority of the data that is urgent on making decisions concerning managers include; data regarding those plans. This fiscal plan of a firm indicates the future financial arrangement of the firm. Plans are vital previously, managerial accounting choices since they in deciding zones in the firm that will make