Accounting Data in Productivity Measurement and Strategic Decision-Making

4025 Words May 1st, 2013 17 Pages
Table of content:
Page number
Executive Summary---------------------------------------------------- 2
Introduction ----------------------------------------------------- 3
What is Cost Accounting? -------------------------------------------- 5
Importance of data collection ---------------------------------------- 6
Accounting data for productivity measurement ----------------- 7
Accounting data for decision making ------------------------------- 9
Identifying profitable segment’s using accounting--------------- 11
Managerial Accounting changes-------------------------------------- 13
Conclusion ---------------------------------------------------------------- 14
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Managerial accountants therefore are seen as the value-creators amongst the accountants. They are much more interested in forward looking and taking decisions that will affect the future of the organization, than in the historical recording and compliance aspects of the profession. Managerial accounting knowledge and experience can therefore be obtained from varied fields and functions within an organization, such as information management, treasury, efficiency auditing, marketing, valuation, pricing, logistics, etc. (Managerial Accounting,2011, para:1-2)

Importance of Managerial accounting for firms in general
Managerial accountants record financial information for their companies that is used by the organization’s management team to aid in the decision-making process. Managerial accountants develop budgets, perform asset and cost management, and create important reports used by the management team. Managers depend greatly on the information provided by managerial accountants to develop effective business strategies. Small business owners make most of the decisions within their company. The information presented by managerial accountants affects
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