Understanding of Management Accounting

Management accounting provides information to support management’s decision making. Decision-making by accountants is integral to a company’s decision-making strategy. Accountants do cost analysis. Information obtained from cost analysis is used by company management to determine the appropriate products to sell and the sales process. A management accountant can distinguish alternatives for promoting a particular product and include the product or service in the company’s operations (Dosch). Determining the market the company will reach may be aided by a management accountant’s analysis. Activity cost techniques the company could determine the procedures to be incorporated in the production and service lines. Customer’s costs are contained in the information hence enabling the company to decide on the most profitable market. Provision of manufacturing based information is made possible with the use management accounting information. Buy analysis is an essential tool that is used to assist the top management to decide what item they should purchase for manufacturing of the main products. With the completion of the make and buy analysis the company could determine the most profitable choice (Dosch). Management accountants also aid in the development of the company goals, they go through researchers, and current information of the company and hence are eligible to the decision making process of the formation of company goals.

Management accounting information is essential since it provides data based pieces of evidence for the best decisions the company should undertake. Management accounting information is inclusive of financial statements, budgeting, scorecards and projections that the company requires projecting the best future of the company. Managers focusing on this information aids the company to have consistent and advanced improvement.

Work Cited

Dosch, Jennifer. “Today’s Management Accountant Skills, Responsibilities and Roles In Today’s Global Economy.” CMA Metropolitan State University n. pag. Print.