Accounting Practices as Part of a Large Information Set for Managers

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Date Submitted: 11/24/2012 06:27 AM

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Information management use can be found from a variety of sources in many different forms. The information required will depend on the task that it is being used for. Different sources of information will be suitable for different situations and information will need to be presented in a format which will maximise the benefit that can be extracted from it. Accounting information is just one of many types of information that management will use to help with their decision making process. In this essay I will discuss the usefulness of accounting information and also the other types of information management may use instead or alongside the accounting information. I will conclude that accounting information is of value to management as it helps give a vital element to their decision making but it should not be used in isolation. Instead management should use information from a variety of sources in order to make the most informed choices possible.

McKinnon and Bruns (1992) discuss how managers can get valuable information from a variety of sources. Firstly, observation where the managers informally source information in a hands on way by literally watching what is going on around them. This information can then be used to help them make judgements and manage responsibilities. The actual work managers carry out on a day to day basis also provides them with information. For example, when they are in meetings or completing orders all these things are generating new information. The people management work with are another source of information for them. The building of relationships is vital as it not only means management know they can trust the information they are receiving but also means they will know exactly where to go to find a bit of information they need. Finally, management place a lot of value on informal reports which they will often receive on a regular basis. These reports allow managers to make decisions and changes before mistakes are formally...