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Beneficial Learnings from Managerial Accounting Course

Student’s Name

Bachelor of Science in Business Administration, University of the People

BUS 3304: Managerial Accounting

Lecturer’s Name

July 06, 20XX

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Beneficial Learnings from Managerial Accounting Course

Managerial accounting tools provide a way to establish insights that can be used to

communicate with stakeholders about the state of a company. Regardless of the type of

organization, providing the appropriate financial accounting reports and analysis enables the

business to fulfill its objectives more effectively. Internal stakeholders depend on managerial

accounting to provide comprehensive financial and non-financial information to aid in decision-

making, strategy development, and control (Heisinger & Hoyle, n.d.). As a result, it is critical for

policymakers and line managers to understand accounting information in all operational aspects

of an enterprise, as well as the benefits provided by accounting structures.

This learning journal will discuss the knowledge gained in this course and outline at least

three valuable tools to help achieve personal and professional objectives.

Self-disclosure and External Experiences

Throughout my years of professional career, I have gained various management

accounting experiences from informal training and collaboration projects with the professional

services industry. As a sales manager for an organization, I understand the importance of

management accounting as I have learned deeper from this course. Accounting data is mostly

used to aid managers like me in making decisions (Horngren et al., 2014). Each day, department

managers face dynamic decision-making processes, some of which rely on accounting facts to

ensure effective and coordinated operations. It is critical for decision-makers to examine the

impact of their actions on expenditure and revenue at all times (Horngren et al., 2014). The first

tool I can relate to, which has been beneficial to my personal and professional goals, is the

capital budgeting analytical techniques. These are critical considerations for management, as one

must comprehend the time value of money or the difference between what a dollar is worth now
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and what it will be worth in the future (Heisinger & Hoyle, n.d.). In this instance, I will be able

to use net present value (NPV), internal rate of return (IRR), and payback method to anticipate

expenditures for the next years and find cost-cutting options consistent with technological

developments that may be considered in my organization's information systems strategic plan

(ISSP), to make sound long-term financial decisions.

Course and External Readings

The supplied course and external readings have allowed me better to understand linked

production costs and other operational expenditures. It gave useful references and examples for

learning cost accounting tools and procedures. Cost accounting tools, as the second most

beneficial to my goals, provides vital accounting information to understand an in-depth look at

manufacturing processes for three major cost components necessary to complete production:

direct materials, direct labor, and manufacturing overhead (Walther & Skousen, 2009). Managers

may utilize cost-volume-profit (CVP) analysis to evaluate the sales level at which they break

even or balance their revenue and expenditures to adapt to the ever-changing business

environment (Franklin et al., 2019). Understanding management and cost accounting tools such

as CVP, break-even, and contribution margin can assist me in evaluating financial reports,

utilizing the techniques covered in this course. A break-even analysis determines the income

required to cover all expenditures at a given price (Walther & Skousen, 2009). Also, from these

course readings, I've learned that business is not just about financial gain or profit; some choices

place a higher premium on qualitative factors, particularly regarding workers’ lives. Qualitative

elements may take precedence over financial facts, especially in service sector organizations, in

order to deliver excellent and quality services.

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Course Objectives and Discussion Forum

The discussion forum excerpts expound on the fundamental contrasts between different

types of industries and expose their accounting processes. The service sector, for instance,

mainly relies on its workers' expertise, implying productivity and overhead expenses take

primacy (Shim et al., 2011). Although service organizations' financial operations increasingly

resemble those of manufacturing firms, they still use direct labor costs or direct labor hours as

the cost driver for overhead applications (Horngen et al., 2014). This leads me to my third most

important financial tool learned from this course, the financial ratios. These financial analysis

measures may be useful to evaluate service sector performance in relation to course objectives.

Management or analysts may utilize accounting trend analysis to forecast future financial

statements. Additionally, if in the future I will be engaged in consulting or personal business

activities or investment initiatives, the typical size income statement may provide insights into

gross profit and operating margins. Another objective may be to evaluate income statements and

balance sheets to ascertain which areas of the business we plan to invest in are doing well or

poorly. An organization's balance sheet and income statement can be used to do quantitative

analysis to determine its profitability, margins, liquidity, leverage, growth, rates of return, and

market value, among other things.

Conclusion

Financial tools provide good indicative insights into financial development and economic

health as long as the business is aware of the data's limits. Management accounting’s

fundamental objective of supporting companies in planning and managing their operations

(Horngren et al., 2014) provides a supplementary measure for performance management

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evaluation. Although plans define how an organization can accomplish its goals, controls carry

out plans and determine how it functions.

For my personal and professional advancement, determining the value or impact a cost

will have, ensures an efficient contribution to enhancing public services.

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References

Franklin, M., Graybeal, P., & Cooper, D. (2019). Principles of Accounting: Managerial
Accounting (Vol. 2). Rice University, OpenStax.

Heisinger, K., & Hoyle, J. B. (n.d.). Accounting for Managers. https://2012books.lardbucket.org/

books/accounting-for-managers/index.html

Horngren, C., Sundem, G., & Schatzberg, J. (2014). Introduction to Management Accounting
(16th ed.). Pearson Education, Inc.

Shim, J. K., Siegel, J. G., & Shim, A. (2011). Budgeting Basics and Beyond (4th ed.). Wiley.

Walther, L. M. & Skousen, C.J. (2009). Managerial and cost accounting. https://library.ku.ac.ke/wp-
content/downloads/2011/08/Bookboon/Accounting/managerial-and-cost-accounting.pdf