Please find the attached doc and respond
Write 300 words on the topic and respond to three articles with 150 words each
1) Write 300-350 words with 3 peer reviewed references in APA format
Discuss the importance of managerial accounting as “decision-making tool” in your organization.
2) Respond to 1st article with 150 words
A Managerial accounting is a system in which managers identify, analyze, interpret, and communicate information to managers to help them make decisions and achieve business goals. The information collected covers all aspects of accounting that inform the Managerial of activities related to the cost of goods or services purchased by the company. Managing accounting ants use budgets to determine work plans. (Sprinkle, 2006) Performance reports are used to determine deviations from actual results compared to budgets.
“Managerial accounting and supervision to assist management in the development of Managerial accounting, decision-making, planning, and product Managerial systems and in developing and executing the company’s strategy.” We use the existing Managerial accounting framework to manage, integrate, and evaluate existing experimental Managerial accounting research. Managerial accounting refers to the performance of tracking internal costs for any business process, which helps the company, company, or individual make decisions about the product, operations, and investments in the market. (“Managerial,” n.d.). Companies need a Managerial accounting to know their budget, their value, and then allocate resources in production, sales, and investment. The role of Managerial accounting is very important for the well-being of the company. Its role and responsibility are so great that misunderstanding or neglecting any work plan by the managing accounting ant can also hurt the company’s future.
Thompson et al. (2009) note that the Managerial accounting develops ideas for manufacturing and service organizations. Therefore, Managerial accounting techniques can provide strategies for efficiency and cost-effectiveness, which can be used primarily as a competitive tool for growth and profitability in the banking sector. Durand (2003) argues that Managerial reporting is often not used as a powerful mechanism for competitive advantage. Frank (1990) considers the preparation of Managerial and non-Managerial reports for Managerial and accounting reports for non-governmental groups such as shareholders, creditors, regulatory agencies, and the tax office. The Managerial Accounting provides this experience as an experience that encompasses the following three areas:
a) Strategic: Raising the role of Managerial accounting as a strategic partner in the organization;
b) Outcome Management: Developing business decision-making and organizational Managerial experience;
c) Risk Managementa: Support the framework and practices for identifying, measuring, managing and reporting risks to the organization’s goals.
Hilton (2008) argues that Managerial accounting ants play a leading role in their teams and provide valuable information that guides the company in achieving its strategic goals. In addition, the division of liability centers may depend on the objectives and methodology of Managerial accounting and analysis, as liability centers may be commercial banking units, corporations, representatives, or departments. Demand centers for retail, corporate, and others can be built based on a commercial bank or banking sector in which the bank operates. Therefore, the construction of the liability center depends on the profitability of any bank. In addition to the traditional services offered by a commercial bank for Managerial purposes, a new assortment of services offered by a Managerial institution can be created by grouping operations into a single system operating system. The relationship between transaction accounting for Managerial accounting and analysis needs to be tightly defined, resulting in the commercial bank being limited to its liability centers, properly determining its revenues and expenses, and creating favorable Managerial proposals.
The following are objectives and requirements:
· Determining revenues, expenses, and results for each department;
· Results of banking operations and services;
· Budgeting revenues and expenses for departments and operations;
· Tracking and monitoring performance to obtain results and information needed for Managerial.
Issues to be solved by using a Managerial accounting include: creating the most suitable process for planning and budgeting for the bank; Profitability control over various products, work areas, departments, and subsidiaries; Control over the structure and timing of assets and liabilities; Monitoring risk levels and capital efficiency; Making Managerial decisions based on factual information about specific transactions and circumstances in the bank; Modeling the results of some activities, analytical results; Improving decision-making processes in banking products; Optimization relationships with customers by assessing customer performance and customer quality; Other expenses; Creating an efficient system of managerial accounting ability for results.
3) Respond to 2nd article with 150 words
Managerial accounting refers to a kind of accounting that offers financial information to company decision-makers. Managerial accounting helps to plan, forecast, and budget company operations. This process helps to establish the direction of the organization over a period, either for months or years. A capital budget for the organization is vital since it details an investment’s cost to be undertaken in the future. The budget also outlines projections and costs of acquisitions and equipment. Secondly, managerial accounting helps to guide decisions on project management (Tarver, 2019). Such choices as capital, cash outlays, and debt to finance the project is possible via the use of managerial accounting. Thus, managerial accounting helps to deliver a project within the budget and at the desired time with a focus on its profitability. Besides, managerial accounting is vital to performance tracking. Real-time decisions are possible since the executive has data for a project. Therefore, they can measure performance against budget and forecasts. This move is crucial since the organization will avoid cost overrun. Hence, it maintains a competitive advantage.
Additionally, managerial accounting utilizes data provided. Financial and budgeting projections alongside balanced scorecards guide the management concerning the future of the organization (Freedman, 2019). A focus of this information by managers is critical since they make decisions for continuous improvement, which are justifiable because of the intelligent breakdown of the organization’s data. Lastly, managerial accounting helps to establish costing techniques based on the activities the organization should undertake. Activity-based costing techniques help to determine the actions necessary for producing and servicing a product line. Also, these techniques help the producer to advertise their product to the desired customer with a more significant potential to bring profit to the company.
4) Respond to 3rd article with 150 words
A management accounting department is considered as one of the essential units of a company. Few entrepreneurs do not understand it due to its under the radar style of work. Management accountants guide the overall business strategy by creating internal analyses and are considered as insiders. Their job description details the job as to prepare internal financial reports, accounts to help the manager’s decision-making process, and records. In simple terms, we can say their job is complex financial data, which they turn into actionable insights (Contributor and Contributor, 2020).
Below are a few of the reasons why management is considered as important in decision making in an organization.
Relevant Cost Analysis: The information used by the company management is provided by the managerial accounting to determine what should be sold and how to sell it. To do this and evaluate this decision, an accounting manager will examine the costs that might differ between each product’s advertising alternatives and ignoring common costs. This entire process is called relevant cost analysis (Contributor and Contributor, 2020).
Activity-based costing techniques: After relevant cost analysis, the company has determined what products they need to sell. The business will plan to determine to whom they should sell those products. With the help of activity-based costing techniques, small business management can take advantage to determine the activities that are required to produce and service a product line. By doing this, the company will have an advantage in deciding which customers are more or less profitable and intern it will allow businesses to focus more on advertising toward those customers who are the most profitable (Why Management Accounting Is Important in Decision-Making, 2020).
Make or buy analysis: The main use of managerial accounting information is to provide all the necessary information used in manufacturing. With the completion of making or buy analysis, the company can determine which choice is profitable as the owner can consider whether to make or buy a component needed to manufacture the first product of the company (Why Management Accounting Is Important in Decision-Making, 2020).