Decision - making, Managerial Accounting

Decision Making

2468_decision making.png

Some managers appear to have an intuitive sense of good decision making. The reality is that good decision making is hardly ever done by intuition. Consistently excellent decisions can only result from diligent accumulation and evaluation of the information. This is where managerial accounting comes in action

-- providing the information required to fuel the decision making process. Managerial decisions can be categorized according to the three interrelated business processes: planning, controlling directing are very important. Accurate execution of each of these activities culminates in the creation of business value. Conversely, failure to plan, control or direct is a roadmap to business failure.

The core theme to focus on is this:

 (1) business value results from good management decisions,
(2) decisions should occur across a spectrum of activities (planning, controlling and directing), and (3) quality decision making can only consistently happen by reliance on information.
Thus, it implores you to see the relevance of the managerial accounting to your success as a business manager. Let's now take a nearer look at the components of planning, controlling and directing.

Posted Date: 7/21/2012 3:03:09 AM | Location : United States







Related Discussions:- Decision - making, Assignment Help, Ask Question on Decision - making, Get Answer, Expert's Help, Decision - making Discussions

Write discussion on Decision - making
Your posts are moderated
Related Questions
Archie Ltd manufactures a product called Gizmo. It uses the following direct inputs: Price Quantity Cost per unit of output Direct materials $4 per gram 10 grams per unit $40 per

Number of Operating Cycles: The number of operating cycles in a period is determined by dividing the number of days in a year i.e.365 by the length of net operating cycle. Express

Markov Chains: Markov Chains are named after the Russian statistician A.A Markov who developed probabilistic models that are often applicable to decision making problems in bu

Advantages of activity based costing 1) It helps understanding the behavior of overhead costs and their relations ship to products services customers and market segments. 2)

accepted#Regarding the Overhead costs, these are allocated based on Direct Labor;

Conceptual understanding: defining in identifying relevant information Business application - Dave burgers is in the fast food restaurant business. One component of it's market

GRAPHICAL METHOD Graphical methods can be used in games with no saddle points and having pay off m X 2 or 2 X n matrix. The aim is to substitute a much simpler 2 X 2 matrix for


What is Production cost It begins with the supplying of materials, labour and services and ends with the primary packing of the product. Therefore, it includes the cost of d

Difficulties in cost reduction 1) Resistance by employees to pressure to reduce cost usually because the nature and purpose of the campaign has not been properly explained to t