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Management Accounting

Name of the Student

Department

BUS 5112 Management Accounting

Name of professor

Due April 14, 2022

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Management Accounting

Management accounting refers to the practice of analyzing and communicating financial

data to managers who use the provided information in their decision-making (Berkau, 2020).

This is meant to improve the capability of the company as it prepares its business performance.

In my previous company, I was the managerial accountant and here I was working under three

principles that were my guide to many managerial decisions. The first one is planning,

controlling, and lastly Evaluating.

To begin with, planning is crucial for any business as it is the first taken by the managers

on deciding the course of action to reach a certain desired result. Planning allows for thoughtful

consideration of financial realities before a final decision is reached (Apostolides, 2016). At

times, planning is considered the creation of a mission statement that is broad enough to contain

future growth and changes related to the company. For instance, a company might decide to have

a five-year plan of selling its products for 10 percent more than it operates. This plan might

include selling offshores thus it requires a lot like the growth of the company depends on the

final decision under this case.

Secondly, the controlling principle comes in to ensure and determine whether the plans

are meeting the projected goals or objectives. It involves the monitoring of the planned

objectives. For instance, if a company decides to curb shoplifting and a plan is put in place to

monitor the customers, then controlling this includes installing cameras and antitheft tags.

According to (Adler, 2013) control in management involves helping to coordinate day-to-day

activities of the business which leads to meeting the company's set goals and objectives.
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Lastly, it's the evaluating principle that involves the comparison of actual results against

the expected outcomes on department levels. This is done by the managers to determine whether

the company met the goals it initially set during the planning stage. Here, managers are allowed

to discuss and make decisions on how to move forward and whether to modify certain aspects or

not. This includes both quantitative and financial measures that have to be inspected to determine

the way forward for the company or business.

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References

Adler, R. (2013). Management Accounting. Routledge.

Apostolides, N. (2016). Management Accounting for Beginners. Routledge.
Berkau, P. C. (2020). Management Accounting: International Syllabus. UVK Verlag.

Word Count: 406 words