Managerial Accounting

CHAPTER 1

1.0 INTRODUCTION

Today, managerial accounting plays an important role in many organizations. Managerial accounting is an alternative term for management accounting which defined as the procedure of preparing management accounts that provide precise and timely key financial and statistical information to make day-to-day and short term decisions by the managers in the organizations (BusinessDictionary.com, 2015). A crucial role of managerial accounting is to deliver economic and financial information for managers and other internal users in making decisions as well as add value to an organization. (Siegel, 2015) states that adding value to organization means assisting managers operate the business by providing significant information for business decisions, explaining how the information affects the decision, and participating in the decision making process. In other words, the question on how managerial accounting add value to an organization can be refer to on how does by making management accounts can help managers run the business mainly during the decision making process. The managerial accounting help managers by providing useful information and guidelines for making decision. There are five (5) fundamental processes for successfully carrying out business

The purpose of management accounting in the organization is to assist managers making decision by collecting, processing, and communicating. Managerial accounting data, such as daily sales reports are often used in decision making. Management accounting collects data from cost database which includes both financial and non-financial data, and prepare reports for the manager. The systems professionals will process information in useful formats which will helps management in planning, controlling, organizing, directing as well as