Managerial accounting is a job beyond doing the taxes and the books. In my case, I provide the manager economic and financial information on the different operations of the company needed in making decisions on how the activities of the company will be administered. Information that provided by managerial accountants are costs of the products of the company, budgets, performance reports and other information needed by the manager in planning and controlling the activities of the company (http://www.managerialaccounting.org/).
Information on the costs of products includes the cost of the inputs used in producing the products of the company, in the case of Claire’s Antiques it is oak wood that is the primary input for their products. This information can be used by the manager in deciding the prices in selling their products. It could also help the manager budget the company’s resources.
Currently, Claire’s Antiques is reproducing three types of products: clocks, dinette sets, and bedroom suites. As managerial accountant, I have to make financial statements on the profits and sales on these three products to aid the manager on deciding how much to produce for each product to maximize profits for the company.
Economic information on demand of their products on different regions will help the manager decide which regions to establish businesses and expand.
So, you see managerial accounting is not as boring as other people think. It is not just a job on doing taxes and ‘the books’, but a challenging job for accountants. Furthermore, work of managerial accountants plays an integral part in decision-making done by the managers of the company.
Salzman, Mary. (2007). Managerial Accounting. Accounting Site. Retrieved January 10, 2007, from http://www.bellaonline.com/articles/art41958.asp