management accounting and decision making
According to Burger (2008) “Accounting is the language of business. A lot of people think it 's just numbers, but it 's really a lot more than that. There are a lot of areas outside of numbers that need to be looked at, processes and procedures, what the tone of the company is. Accounting will take you in just about any direction in a company." ~ Wade Becker, CPA, Beard, Miller Co.
The job description of many professions is changing nowadays. The skills to perform a certain job require more skills to perform a particular job. If an example of Information Technology is to be taken then it is realized that once they were left to do IT related jobs or make computers work however, in today’s world IT professionals are now moving into higher level management positions which require them to perform many other tasks which may not be directly related to the their profession. Therefore, a stereotypical role of an accountant was once considered a “number person” but today’s era demands accounting professional to own and use interactive and communication skills to help with the decision making process across all areas of a business. In a managerial accounting world all professionals must communicate their ideas to other companies using ways which are tactful and effective. Siegel (2000) states that “Management accountants should be great communicators.”
Durry C (1992) believes that management accounting is “concerned with providing information to managers –that is people inside an organization who direct and control the operations.” In the 19th Century financial accounting was considered to be the need of a society which later evolved to Management accounting. Management accounting became a prerequisite for more detailed information for stock control, product costing and decisions affecting the future. Accounting is facing numerous challenges, as Elkington (1998) states “business people must increasingly recognise that the challenge now is to help to deliver
The job description of many professions is changing nowadays. The skills to perform a certain job require more skills to perform a particular job. If an example of Information Technology is to be taken then it is realized that once they were left to do IT related jobs or make computers work however, in today’s world IT professionals are now moving into higher level management positions which require them to perform many other tasks which may not be directly related to the their profession. Therefore, a stereotypical role of an accountant was once considered a “number person” but today’s era demands accounting professional to own and use interactive and communication skills to help with the decision making process across all areas of a business. In a managerial accounting world all professionals must communicate their ideas to other companies using ways which are tactful and effective. Siegel (2000) states that “Management accountants should be great communicators.”
Durry C (1992) believes that management accounting is “concerned with providing information to managers –that is people inside an organization who direct and control the operations.” In the 19th Century financial accounting was considered to be the need of a society which later evolved to Management accounting. Management accounting became a prerequisite for more detailed information for stock control, product costing and decisions affecting the future. Accounting is facing numerous challenges, as Elkington (1998) states “business people must increasingly recognise that the challenge now is to help to deliver
References: Cokins, G. and D. Hicks (2007). Where Does ABC Fit Amongst the Clutter of Managerial Accounting? Cost Management, March/April, 21-28. Cooper, R. & Kaplan, R. (1988a). How Cost Accounting Distorts Product Costs. Management Accounting, April, 20-27. Cooper, R. & Kaplan, R. (1988b). Measure Costs Right: Make Decisions Right. Harvard Business Review, September-October, 96-103. Siegel G “management accountants: the great communicators” All business accessed 25th October 2013 www.allbusiness.com/accounting-reporting/managerial-accounting/696208-1.html 1st december 2000 Durry C, (1992) Management and Cost Accounting, 3rd edition, London:Chapman and Hall. Kaplan, R.S and Norton,D.P (1996), “using the balance scorecard as a strategic management system”, Harvard Business Review. Kaplan, R.S (1994) Management Accounting 1984-1994) development of new theory and practice, Management Accounting research, 5 (3/4): 113-156