Manager
-]How Managerial Accounting Adds Value to the Organization
(See related pages)
| | | Managers need information for all of the managerial activities described in the preceding section. That information comes from a variety of sources, including economists, financial experts, marketing and production personnel, and the organization’s managerial accounting system.Objectives of Managerial Accounting Activity
List and describe five objectives of managerial accounting activity. |
Managerial accountants add value to an organization by pursuing five major objectives: 1. Providing information for decision making and planning, and proactively participating as part of the management team in the decision-making and planning processes. 2. Assisting managers in directing and controlling operational activities. 3. Motivating managers and other employees toward the organization’s goals. 4. Measuring the performance of activities, subunits, managers, and other employees within the organization. 5. Assessing the organization’s competitive position, and working with other managers to ensure the organization’s long-run competitiveness in its industry. “In five years [we will become] even more strategic. Really understanding the ins and outs of all the organizations, and really trying to be visionary—understanding what is happening to our business.” (1c)Hewlett-Packard |
Nowadays managerial accounting analysis is considered so crucial in managing an enterprise that in most cases managerial accountants are integral members of the management team. Far from playing a passive role as information providers, managerial accountants take a proactive role in both the strategic and day-to-day decisions that confront an enterprise.Although much of the information provided by the managerial accounting system is financial, there is a strong trend toward the presentation of substantial nonfinancial data as well. Managerial accountants supply all kinds of information to management
(See related pages)
| | | Managers need information for all of the managerial activities described in the preceding section. That information comes from a variety of sources, including economists, financial experts, marketing and production personnel, and the organization’s managerial accounting system.Objectives of Managerial Accounting Activity
List and describe five objectives of managerial accounting activity. |
Managerial accountants add value to an organization by pursuing five major objectives: 1. Providing information for decision making and planning, and proactively participating as part of the management team in the decision-making and planning processes. 2. Assisting managers in directing and controlling operational activities. 3. Motivating managers and other employees toward the organization’s goals. 4. Measuring the performance of activities, subunits, managers, and other employees within the organization. 5. Assessing the organization’s competitive position, and working with other managers to ensure the organization’s long-run competitiveness in its industry. “In five years [we will become] even more strategic. Really understanding the ins and outs of all the organizations, and really trying to be visionary—understanding what is happening to our business.” (1c)Hewlett-Packard |
Nowadays managerial accounting analysis is considered so crucial in managing an enterprise that in most cases managerial accountants are integral members of the management team. Far from playing a passive role as information providers, managerial accountants take a proactive role in both the strategic and day-to-day decisions that confront an enterprise.Although much of the information provided by the managerial accounting system is financial, there is a strong trend toward the presentation of substantial nonfinancial data as well. Managerial accountants supply all kinds of information to management