1)How are managerial accounting concepts useful for a decision-maker at any level in an organization? Make sure to include different levels of decision-makers in your reply.
2)In what ways can management accountants enhance the performance evaluation procedures in organizations? Should performance evaluation be based on numerical values or qualitative data?
3)What do you see as the major impediments to effective budgeting in organizations? Why?
4)How relevant should allocated costs be in product-costing decisions? Why?
5)What are the major benefits of using transfer pricing in organizations? What are the disadvantages?
1. These concepts are useful because they provide specifics of information without all the details that are used to assess and inform the report writers. The information is usually not for public consumption. It refers to processes that help make decisions for future strategic planning rather than offering information about past performance. These reports are used at all levels because they are forward considerations rather than historical. The information gives most needed decision-making information for all managers, not just the senior staff. The managerial accounting also uses models that are abstract and what ifs rather than using specific projects and specific cases for the business.
2. Accountants work with numbers. By helping to understand the productivity of an employee, per units completed or dollars earned compared with salary, a company can set benchmarks for personal and company goals. These goals can be modified based on company overall totals.
For most people, the accomplishment of a personal goal is important. However, incentive programs need some tangible proof of goal completions and this is where the accounting department makes a difference. Evaluating the person and ...
Managerial accounting for decision-makers at any level are examined.