The authors (2018) provide the definition of managerial accounting in their own ways while making connections between
Question:
The authors (2018) provide the definition of managerial accounting in their own ways while making connections between management decision-making and managerial accounting. The article was sectioned into seven parts. Section one was the introduction. In this section, the author emphasizes that managerial accounting helps managers to develop an optimal method on how resources in an organization are used to obtained targeted objectives as well as analysis of how the distribution of resources are utilized for obtaining the targeted objectives. One important role of managerial accounting that were discussed in the article under this section was cost calculations. It was mentioned that managerial accounting deals with cost calculations in the support of decision making.
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The second section of this article elaborated on the theoretical background of the research. The authors (2018) argued that managerial accounting is essential for strategic decision-making within an organization. It was further argued that managerial accounting must include the elements of general accounting, special accounting, management accounting, and control accounting. The authors (2018) mentioned that these elements are needed for proper functioning systems that guide the strategic decision-making process within an entity.
The third section of the article describes the research methodology. The research methodology was based on quantitative, opinion-based, observational analysis.
The fourth section of the article was based on the importance of managerial accounting within an entity. The authors (2018) reiterated that strategic decision marketing process is essential for organizational success. They (2018) further argued that managerial accounting provides management with information that are necessary to understand how processes are developed at certain period of time, and how the information helps to make the most suitable decision to improve organizational activities.
The sixth section of the article elaborated on the processes of decision making and how these processes influence the management of an entity. In this section, the authors (2018) further revealed that managerial accounting provides management teams with information that are needed for quality decision making within an organization.
The last and concluding section of the article revealed that managerial accounting provide a strong guideline on information that it transmits, thus influencing strategic decisions, and affecting the entity's structure and performance of its system.
Reaction/Reflective to the article
I believe that the authors formulated a strong research article on managerial accounting and decision making. There was a strong link between managerial accounting and managerial decision-making. I learned from the authors that managerial accounting is one of the essential tools that aid managers in formulating strategic decisions for an entity. Reading this article has made me realize that managerial accounting is not only about a numbergame but also about the processes and information that guide decision-making.
Despite the strong argument presented in this article, I still believe that there were some limitations to the research. First, the research was opinion-based and observational study. There were no supporting data and other scholarly articles that were provided in support of the claims made by the authors. Second, the authors did not provide examples of how managerial accounting has guided management teams to achieve decision results. For example, the authors would have provided a name of a business entity that has successfully implemented managerial accounting in their decision-making process and results that were gained from the implementation of managerial accounting. Leaving out these two supporting concepts from the research thus limit the argument of the authors.
Please JUSTIFY or agree/disagree with the writer or answer the following. And please mention if you are justifying, agreeing, disagreeing or answering the above.
International Marketing And Export Management
ISBN: 9781292016924
8th Edition
Authors: Gerald Albaum , Alexander Josiassen , Edwin Duerr