management accounting

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In 3 to 4 sentences reply to the statement below about management accounting

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  • Management accounting is the utilization of accounting information systems to help make informed business decisions to reach company objectives. There are three important principles that govern accounting management. The first principle is using accounting systems to decide who makes company decisions over the assets they own. In essence all individuals have a certain amount of decision making ability which they are given in some way like their job description. The second principle is that accounting information that is created from the accounting system supports the plan and decision making. It is crucial to have accurate information as well as the proper resources to move forward with a decision. I have seen on several occasions where my company has utilized benchmarking as another means of gathering information to see how other companies operate and cost associated. The final principle is accounting reports helps to monitor, evaluate, and rewards performance. Managers are going to try and make the best decisions with assets they are giving however those assets belong to the company in which for this reason they must be monitored to see if they are effectively being used. It is important to evaluate all of these principles and make changes where necessary to help the company reach its goals.
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