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Finance & Accounting
Pages 6 (1506 words)
Management Accounting Name Institution Management Accounting Managers, nowadays require information for most of the managerial functions in a company. This information comes from a number of sources, for example, economic analysts, financial analysts, sales and marketing persons and the company’s accounting system.
The decisions also help in reducing cost that a company incurs in day to day activities. The second one is by assisting the management in controlling and directing the operations of the company. A company that has well organised activities achieves efficient use of resources, (Chandler, 1977). The third one is that the information motivates employees and managers to achieve the targets set. The targets are set in a participatory manner and, therefore, every worker has their views taken into consideration. The fourth one is by measuring the performance of every aspect in the business, for example, employees, managers and departments. The last one is that the competitive position of the company is gauged. This ensures measures can be taken to increase the company’s long-run competitiveness over others in that particular industry. The business thus controls a large portion of the customer share which ensures high profits. Management via accounting is so crucial today because managerial accountants are important members of any management team. Managerial accountants play an important role of providing strategic decisions as well as day to day decisions. The decision making process is complex and requires specialists from management accounting as well as other financial disciplines. ...
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