Chapter 18, Problem 1DQ

To determine

Managerial accounting:

Managerial accounting is a process of analyzing, evaluating and interpreting the financial data to achieve the objective of a business.

Describe the managerial accountant's role in business planning, control, and decision making.

Answer to Problem 1DQ

Solution:

Managerial accountant's play vital role in analyzing and evaluating the financial information which is prerequisite in business planning, control and decision making.

Explanation of Solution

The management of business has to make lots of decisions regarding the future expansion and growth of the business which is impossible to do without understanding the circumstances and consequences of a future action. A managerial accountant gathers such financial data and analyzes an alternative's pros and cons to assist in making a logical and optimal decision from the perspective of achieving the goals of a business organization.

Conclusion

Managerial accountant aims at depicting the outcomes of various alternatives available based on historical financial data.