Managerial Accounting

Managerial Accounting

Ashford University

Managerial Accounting – BUS630

May 2013

Managerial Accounting

Managerial accounting constitutes a large portion of the managerial functions within an organization or corporation, allowing managers to verify, direct, and control the business in a manner that will product the best outcome overall. While accounting does deal with finances, in this case managerial accounting does concern itself with finances that are ties to stocks, stockholders or and other entity outside of the organization or corporation. Managerial accounting allows the managers to make key decisions on which affect how the organization is run in a manner that allows for the products to developed and processed in a manner that generates revenue for the business and how long it can/could or will be sustained in the current and future market environments.

Managerial accounting is considered a process of identifying, measuring, and analyzing financial information needed by management to execute the planning evaluations and controls of the organization or corporation in order to make it successful for the future. Communicating this information in a manner that gives pertinent and relevant financial information facts to the managers to insure that they are making the best evaluated financial choices for the business overall. Thorough accounting provides detailed information that allows for internal planning and control of business assets for the internal planning process to assist with leading and managing the organization over the coming quarters.

Quality accounting at the managerial level is vital to profitability of the organization of its day to day operations and determining the most feasible courses of action in the planning and execution of operations to eliminate waste in processes and actions by analyzing where costs are spent in those operations. This allows managers to predict profitability in the future and eliminate or restructure...