Role Of Accountants As Members Of A Management Team

1528 Words Dec 3rd, 2015 7 Pages
Role of Accountants as Members of a Management Team
Managerial accounting is an integral part of a company’s management team. Managerial accountants gather and report internal financial information that assist managers in running a company efficiently and effectively. They do this by breaking down revenues and costs of various facets of business such as individual products, departments, or branches, going so far as to determine the materials cost, labor cost, and overhead cost associated with each product. With this information, the accountant can minimize a company’s costs while maximizing profits. This process involves planning a budget and comparing it to actual, determining optimal prices for products and services, and reducing overhead costs without negatively impacting the company’s sales.
Functions of Management
In order to better understand the role of a managerial accountant, it is important to first understand the role a manager has in a company. A manager’s role is broken down into three main functions: planning, directing, and controlling (Weygandt, Kimmel, & Kieso, 2015).
Planning
Planning is a function of management that involves looking to the future of the business and determining how to proceed by setting objectives (Weygandt, Kimmel, & Kieso, 2015). It involves comparing the company’s current situation to its desired future situation and establishing what needs to be done in order to meet that desired future. Short-term goals and long-term goals should both…
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