Decision Making With Managerial Accounting

1563 Words Jan 31st, 2016 7 Pages
Decision 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, record keeping and presentation of financial and non-financial information for internal use in planning, decision-making, and control. The managerial system not only offers past financial information on transactions, but it also enables the management to generate forecasting and predicting information (Kidane, 2012).
The role of managerial accounting and the management accountant in a business in an organization Managerial accounting aids managers in their role of leadership in an efficient way in the many functions in the management process. In the planning process, managerial accounting helps to establish the plans for the future in providing information for making decisions. On both short term and long terms, the managerial accounting contributes to determining which products should be sold, the markets to sell them, their price and the evaluation of proposals for spending the available capital. It provides data on the previous performances of the entity as a model for…
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