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
Capital gearing ratio  The term capital gearing is used to describe the relation ship between equity share capital including reserves and surplus to preference share capital a

Game Theory Game theory was developed for the purpose of analyzing competitive situation involving conflicting interests. In game theory, there are assumed to be two or more pe

Planning Planning is the fundamental function of the management by means of which the managers decide: What goals are to be accomplished How they will be accomplished.

What is kaizen Kaizen is the Japanese term for continuous improvement. The kaizen concept was pioneered by in Japan by Toyota as daily challenge to all its to improve their pro

What is Activity ratio Funds are invested in several assets in business to make sales and earn profits. The efficiency with which assets are managed directly affects the volume

Credit Limit A credit restriction is the maximum amount of credit that the firm will extend at a point of time. This indicates the extent of risk taken through the firm through

The Rohr Company’s old equipment for making subassemblies is worn out. The company is considering two courses of action: (a) Completely replacing the old equipment with new equipme

Important steps of budgetary control There are certain steps which are essential for the successful implementation of a budgetary control system. They are as follows: 1) Or

In this section we have discussed the motives for conducting cash balances. In addition, we have discussed cash deficit or surplus situation and how it can be contained by the use

Advantages of Simulation 1) It can be used in areas where analytical techniques are not available or would be too complex. 2) Constructing the model inevitably must involve