The Role of Managerial accounting in port shipping organization
Managerial accounting is concerned with providing information to managers—that is, to those who are inside an organization and who direct and control its operations. Managerial accounting can be contrasted with financial accounting, which is concerned with providing information to stockholders, creditors, and others who are outside an organization. Managerial accounting provides the essential data with which organizations are actually run. Financial accounting provides the scorecard by which a company’s past performance is judged.
problem
Why there is not managerial accounting
As we saw in introduction the role of managerial accounting in organization is very important , so why in p.s.o hasn’t consider until now?
The P.S.O like all organizations have goals and have informational needs in the financial personnel , environmenteal and legal areas.Then managerial accounting provides some of this information
as we see the chart of pso, there is not management accounting department
Objectives of Managerial Accounting can effects
Providing information for decision making and planning: Virtually all major decisions by internal users (i.e., managers) rely largely on managerial accounting information.
Assisting in directing and controlling: Directing and controlling day-to-dayoperations requires a variety of data about the process of providing a good or service.
Directing operational activities: The management team needs data about the cost of providing goods or services in order to set fees and prices.
Controlling operations: Management compares actual costs incurred with those specified in the budget (e.g., analyzing and comparing actu ...