Accounting Data in Productivity Measurement and Strategic Decision-Making

Managerial accounting focuses on the needs of internal users (managers) and on data relevant for decision making.

Hilton, R. (2011). Managerial accounting: Creating value in a dynamic business environment (9th Ed.). McGraw-Hill. Hardcover ISBN: 9780073526928.

Folk, M., J., Garrsion, H., R., & Noreen, W., E., (2002). Introduction to Managerial Accounting. New York, NY: McGraw-Hill/Irwin.

S., & Hassan, M. K. (2012). The domination of financial accounting on managerial Commerce & Management, 22(4), 306-327. doi:10.1108/10569211211284502

The structure of an organization will affect its financial management. Generally financial accounting is for outside use so they emphasize external reporting; which means they report to third parties such as; Medicare, Medicaid and other government entities and health plan payers. Managerial accounting is considered to be prospective as well as retrospective. It is of the upmost importance that the accountant must follow the guidelines principles and ethical standards of planning, controlling, organizing and directing, and decision making if they want to be successful at their job.

Garrison, R., Noreen, E., & Brewer, P. (2015). Managerial accounting (Fifteenth ed.). New York, NY: McGraw-Hill Education.

Managerial accounting underlines on future choices and it is not an obligatory practice. It gives data to the association's insiders in connection with performance assessment, inspiration, course and control. The opportuneness of report is a noteworthy prerequisite and accentuation are set on the significance of things in choice making (Needles, Powers and Crosson, 2010). Administrative bookkeeping gives a report on clients, items, workers and divisions. Also, it is not an absolute necessity for administrative bookkeeping to take the proper accounting rules.

Accountants might give information to an open accountant, who goes about as an advisor, reviewer and duty administration proficient. Partnerships, charities, associations and governments use administration accountants to record and examine money related data of the organizations in which they are utilized. They for the most part prompt organization officials, lenders, stockholders, administrative offices and expense work force. Accountants might likewise work with government authorities who are looking at and keeping up the money related records of the private business for which an accountant is utilized, regarding tax collection and government

Managerial Accounting reports are primarily used by supervisors, line managers, process owners, as well as executives, to gain a better understanding of the current financial and operational health of the organization. (Internal)

Bromwich draws on economic theories. He stated that we need to release “management accounting from the factory floor” to assist it to meet the global challenges in product markets, and to allow management accountants to focus on the firm’s value-added relative to competitors. There are two key themes captured in this paper.

In determining who to carry out which activities and who to carry them, managers use managerial accounting records for organizing the business. The report allows managers to prepare internal reports for better organization structuring after evaluating the existing organization structures. This is after determination of responsibilities and lines of authority of the business. Managerial accounting seeks to design and implement the accounting system to strengthen the connections between the authority, experts, and their responsibilities to ensure performance achievement. It, therefore, identifies the most relevant and essential elements of an organization and suggests ways of improvements (IOANA-DIANA, 2013).

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 business wants to make a profit; accounting is an important part in helping understand how profits and expense amounts are derived. One form of accounting I will focus on is managerial accounting or also known as management accounting. Managerial

Management accountant is less likely to take decision but rather provides data which is aids management in decision making. Management accountant deals with future outcome. It helps in planning the future – because decisions are always taken for the future course of action. Many theories have been developed to management accounting, among them which this study seeks to address is the contingency

In the traditional way, the role of management accountant is to provide information and control financial part, however the changes and development in organizations also change the role of management accountant to be a consultant in organization. The relationship between management and management accountant are closely tied because management accountant like a partner to the management of the organization. This change gives challenges to management accountant which are they need to learn more knowledge that cover accountancy, financial, economy, technology and social relationship.

In Management accounting or managerial accounting, managers use the provisions of accounting information in order to better inform themselves before they decide matters within their organizations, which aids their management and performance of control functions.