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Managerial and Cost Accounting - Assignment Example

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Finance & Accounting
Pages 9 (2259 words)


Author: Instructor: Date: Managerial and Cost Accounting Introduction Managerial accounting is the identification, collection, classification and reporting of financial and non-financial information, which is useful to internal users in planning, controlling and decision making (Rich and Jones 667)…

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Managerial and Cost Accounting

This is because managerial accounting provides information and reports that may be used by organizations to identify areas within the organization that need additional investigation and examination. Managers use information provided by managerial accounting such as budgets to make decisions and plans. The information provided by managerial accounting can be used by managers to solve problems. Therefore, managers can use such information to develop alternatives to issues arising from budgets and production changes. Managerial accounting information is used by managers to make estimations of product and service costs and profitability. In addition, managers understand customer orientation through managerial accounting. Managers are able to evaluate the business from cross functional perspective by use of managerial accounting information. Managerial accounting also provides information that is useful in improving total quality by an organization (Rich and Jones 667). Through managerial accounting, managers can formulate and implement an organization’s strategy activities. It also enables managers to do their work efficiently and effectively, adding value to the organization. This is because managerial accounting creates organizational alignment throughout the organization and facilitates continuous learning and improvement (Davis and Davis 4). ...
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