Decision Making With Managerial Accounting - 1563 Words

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†¦show more content†¦It determines budgetary procedures and prepares a timeline for the business to ensure the harmonization of all plans. In determining who to carry out which activities and who to carry them, managers use managerial accounting records for organizing the business. The report allows managers to prepare internal reports for better organization structuring after evaluating the existing organization structures. This is after determination of responsibilities and lines of authority of the business. Managerial accounting seeks to design and implement the accounting system to strengthen the connections between the authority, experts, and their responsibilities to ensure performance achievement. It, therefore, identifies the most relevant and essential elements of an organization and suggests ways of improvements (IOANA-DIANA, 2013). Managerial accounting helps in the motivation of staff. The reports indicating the performance of the organization influences the behavior of the staff in embracing the organization goals and making decisions aligning with the goals. The reports also have the intention to motiva te the managers in fulfilling the objectives of the business. If individuals do not perform by the set targets, the report motivates them to achieve the goal in the next report, and if the goals are achieved, they make them adjust the goals upwards to perform even better. The areas dwindling in performance are identified with the staff