Decision Making in Managerial Accounting Essay

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Managerial accountants need to use accounting information in seeing to it that they are able to plan, evaluate the company performance, manage risks and control the business operations in a manner that is deemed beneficial to the business as a whole (Caplan, n. d). This can be achieved through: having high standards of ethics in all situations; employing the techniques of management reports, budgetary control, and analysis of fund flows and financial statements; making prudent capital investment decisions; and maintaining continuous quality control systems.
The Definition of Managerial Accounting
Managerial accounting which is a synonym for management accounting refers to the provision of accounting information to the managerial
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In the area of operational control, the managers should for instance be able to know the various inputs required at various production stage. This enables them to help the line managers to identify and eliminate any constraint that might come-by thus ensuring a flaw-less production process.
Maksoud (2011) asserts that management accounting involve strategic, performance and risk management. The managerial accountant should be a strategic partner within the organization helping in devising strategic plans for the organization. He or she should also see to it that there are frameworks to identify, measure, manage and repot all risks attached to endeavors directed at realizing the goals of the organization. Managerial accountants also prepare financial report for non-management groups such as the shareholders, and regulatory agencies.
Ethical Issues in Management Accounting
Ethics refers to the moral principles that govern the conduct of human beings (Mcphail, 2010). They draw the difference between what is right and wrong. In the corporate world, maintaining a high level of moral competence is very vital especially when it comes to management accounting. Management accountant achieve ethical competence though formal training in educational institutions, observing the
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