Question 1
The types of information that Murphy needs to run his business more effectively are management accounting information. Management accounting information is the continuous improvement process of planning, designing, measuring and operating the both non-financial information systems and financial information systems that can helps to decide the management action, provide the type of information that should be generated for managers and creates the cultural values to achieve organization’s and operation objectives. The main role of management information is to support strategic, operational and control management decision making. Management accounting information is important for the managers. Information that provides an overview of the organizations in needed by the senior managers while the detailed information about the area of responsibilities is needed by the middle managers. Information to help to manage their operation day to day basis is needed by the operational managers. It is a main source of information for decision making improvement and control in organizations. Internal decisions makers which are referred as management usually create and use management accounting information not only for the use inside the organization but also to share with the external decision makers such as the suppliers. In order to meet the production schedule, the manager may design an accounting information system for suppliers so that they can help the producer to meet its objectives. It can provide estimates of the costs of the organization output too, so that the managers can make the best operational decisions. Considerable value to today’s organizations by providing accurate information about the activities requires for their success can be created by effective management accounting system.
Question 2
I don’t agree with Murphy’s accountant. Most