HOW MANAGERIAL ACCOUNTING ADDS VALUE TO ORGANIZATION
1. INTRODUCTION
Management accounting provides accounting and related information to support the management of an organization in its internal decision-making. It includes product costing, relevant costing, cost-volume-profit analysis, capital budgeting, and operational, tactical, and strategic planning. A major activity included in the management accounting is the measurement of costs of processes that create value.
Management accounting is performed inside organizations. It is the internal business-building role of accounting and finance professionals, who design, implement, and manage internal systems that support effective decision support, planning, and control over the organization's value-creating operations. Management accounting and finance professionals directly support an organization's strategic goals. Management accounting focuses on the real internal economics of the enterprise ? creating new business, optimizing existing business processes, and analyzing customer value ? that create long-term, sustainable value.
Management accounting is changing rapidly with technology, new analytical tools, and the pressure of increasing competitive challenges reshaping organizational information systems.
2. WHO ARE MANAGEMENT ACCOUNTANTS
Management accountants are strategic financial management professionals who integrate accounting expertise with advanced management skills to drive business performance inside organizations. They serve as trusted partners to executives in all areas of an organization, offering the expertise and analysis necessary for sound business decisions, planning, and support.
Management ...