Running head: MANAGERIAL ACCOUNTING 1

Managerial Accounting

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January 18, 2021

MANAGERIAL ACCOUNTING 2

Managerial Accounting

Management Accounting as techniques and procedures focusing on implementing

corporate tools and operations and projects to enable managers to produce shareholder value.

Management Accounting supports the formation and implementation of an organization's

strategy, strengthens the competitive benefits of an organization, and supports managers'

interests in strategic and organizational decisions. Through its provision of sustainability

knowledge, management accounting will prove to an entity of importance for decision-making

on financial results. Management accountants can evaluate different incidents and operating

measures so that data can be included in the decision-making process of management invaluable

detail. It aims to provide comprehensive information on the organization's activities by

evaluating each product category, process, service, etc.[ CITATION ÜÇM16 \l 1033 ].

Management Accounting helps to enhance companies' future success and mostly aims at

supplying information to company managers so that they can prepare, analyze, and monitor

operations. In short-term and long-term decisions about a company's financial stability,

management accounts can be used. Managers' accounting aids managers make organizational

decisions to improve operational productivity in the business while also contributing to making

long-term investments. According to Proctor, management accounts have three roles:

 Focusing on accounting facts to create plans and resolutions.

 Hold the score to discern resolutions achievements.

 Resolutions that do not function as planned to fix problems [ CITATION And18 \l

1033 ].
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Therefore, the use of management accounting tools in providing sustainability knowledge

that can help enhance the financial results and sustainability can be relevant for many

organizations, whether listed as an exchange and not listed. Although management accountants

have historically been known as numerological crunchers, many companies employ these

techniques not to gather data but to interpret evidence and create knowledge. It has enabled

management accountants to become leaders in decision support and managerial decision-making

system facilitators. Consequently, management accounts may be considered essential for

delivering decision-making sustainability knowledge impacting financial results. Management

Accounting blends finance, accounting, and management with advanced mechanisms to guide a

profitable business[ CITATION Mit17 \l 1033 ].

References

Andrei, G., Gâlmeanu, R., & Florin, R. (2018). Managerial accounting - an essential component

of the information system. Valahian Journal of Economic Studies, 9(23), 109-114.

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Retrieved from

https://www.researchgate.net/publication/331524965_Managerial_Accounting_-

_an_Essential_Component_of_the_Information_System

Mitter, C., & Hiebl, M. R. (2017). The role of management accounting in international

entrepreneurship. Journal of Accounting & Organizational Change, 13(3), 381-409.

Retrieved from

https://www.researchgate.net/publication/313442393_The_role_of_management_account

ing_in_international_entrepreneurship

ÜÇ, M., & KASA, E. (2016). The use of managerial accounting as a tool for decision making by

manufacturing companies in albania. Journal of Accounting, Finance and Auditing

Studies, 2(1), 44-52. Retrieved from https://jafas.org/articles/2016-2-

1/3_Albania_FULL_TEXT.pdf