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Managerial Accounting

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Managerial accounting, “is an activity that provides financial and nonfinancial information to an organization’s managers and other internal decision makers” (Wild & Shaw, 2012, p.4). Being that I am a senior level manager in a large company, there are several types of accounting information that my staff and myself should consider when making decisions. The types of information I feel would be important are budgets, and cost-allocations (Vitez, 2011). Budgets are formal statements of a company’s plans for the future. Being that mostly all of a company’s future plans are related to financial or economic details, a budget would be of utmost importance (Wild & Shaw, 2012).
The second thing that would be important to my staff and me would be cost-allocations. Management uses this data to be certain that all of the goods and services that are being bought by the company are being priced correctly for the consumers; thus making sure that the company is making a profit. Cost allocation is another one of the most important pieces of accounting information for a company to think about. Management puts together financial reports that show the amount of capital that is being put out for all of the company’s resources. Some of the most common cost-allocations are job costing, process costing, throughput costing, and activity-based costing (Vitez, 2011).
Information Technology is a very essential part of communication between managers and their workers. This sort of technology can be introduced into a place of business in the form of fax machines, email, and computer/teleconferences. Information technology can be used by managerial accountants to set up internal networks such as intranet, which is a network for employees to use only. This intranet system would be a great way for employees to voice their concerns/complaints (Fenell, n.d.).
References
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