Purpose of Managerial Accounting

In: Business and Management

Submitted By yluvnow
Words 831
Pages 4
Purpose of Managerial Accounting
Colorado Technical University Online
August 26, 2014

Purpose of Managerial Accounting

The purpose of this presentation is to convey the importance and purpose of managerial accounting, how the managerial accountants support the strategic decisions, ways strategies can be implemented by management and strategy implementation steps that managers can take. As the Board of Directors you will be charged with interpretation of information provided by the accountants. As a board using the financial and managerial accountants’ reports and feedback will assist with the planning and execution of decision that will strategically allow all employees from management down to the front line to operate efficiently.

The purpose of managerial accounting is to take historical information, such as financial statements, budgets and operations reports to create a plan focus inwardly within the company. Managerial accounting is a system of providing and measuring financial and operational information. The system is designed to motivate behaviors, guides managerial action, and support and create necessary cultural values needed to achieve an organization’s strategic objectives (Geense, 2005).

Managerial accounting is comprised of 4 ideas that are the key to its definition. The ideas capture the purpose, scope, attributes and nature of managerial accounting. Cost and operational information, including some financial information define the scope. Reaching the key strategic objectives is managerial accounting's purpose. Managerial accounting by nature is a measurement process. The best managerial accounting information has three attributes its technical, behavioral and cultural (Ansari, Bell, Klammer, & Lawrence, 2012).

Managerial accounting supports strategic decisions through the three attributes. The technical attribute enhances…...

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