show numerical example using the managerial accounting example

Managerial accounting is the source of so much information of various assets, resources and capabilities of an organization. Its employees are also a resource for an organization with regards to which the management has to take decisions.

Managerial accounting gives an HR manager the information regarding number of emloyees or workers required for the job and number actually employed, cost of employing, hiring and related costs, training and education cost, other allowances and perquisites etc. These information are needed to HR Manager for determining how much more employes should he/she hire or lay off. Types and amounts of costs involved in hiring, retaining and laying off the employees.

Managerial accounting gives hard core numbers to HR manager based on which he/she can make various decisions including hiring.

Example:

Suppose amazon or facebook needs to hire different classof employees for different job profiles at various levels of organization. HR manager should know the costs involved because it will directly affect the profitability of the organization. Hiring decisions can be based on various managerial accounting data.

Like,

If it want a bottom level employee for general administration, what should be his salary, what perks should be offered, duration and amount of increaments, how much is the employee expected to contribute to the organization, expected efficiency level for the offered salary and perks, how much hiring cost will be justifiable for that class of employee. Geneal administrative employee can be hired from anywhere who has basic knowledge. Company does not need to go to management schools for campus placements or organize a job event for that. It can be hired fom referals by their own existing employees, too.

On the other hand, if they need a technical person for handling their servers, their codings, their quality check or service development, they need some brilliance who can put his mind, body and soul into the work he/she is assigned to. Because they are core business areas of the company, they cannot compromise even by a milimeter in excellence and desired qualities of the new employee. That's why the costs of going to highly reputed institutes for campus placements world wide is justifiable. If the right candidate is sort listed, they can offer enormous pay to him/her because they have calculated estimate of how much that person can contribute is expected to contribute which is far more than what is offered as pay.