Service Marketing Report, Discussions and Responses-

Discussion 1: Importance of Managerial Accounting

Discuss the importance of managerial accounting as "decision-making tool" in your organization.(350)

Instructions

Read a selection of your colleagues' postings. Respond to at least 3 of your classmates’ posts.

Discussion: 1

Introduction: Shilpa Kunreddy -

Managerial Accounting helps in making decisions with the usage of the provision of accounting information and keeps them also updated about the status of various aspects running within the organization. This also helps managers in taking control of the situation using better acumen; it also helps in better performance using the control functions (Hint et al., 2018). It also helps in taking both short-term and long term decisions related to the financial position of the company.

Discussion

Managers being able to make operational decisions which have long term impact on the performance of the organization as it better decision making increases the efficiency of the managers and help them in making accurate predictions about the events with balanced approach (Hint et al., 2018). Some of the crucial aspects related to managerial accounting are making a forecast, measuring the actual results and then controlling the situations.

They can make quite good decisions related to cost-benefit analysis of the upcoming projects, about the project which involves capital expenditure or outflow of cash for setting up of capital intensive units; also they can make decisions about the operational aspects of running the current production, about maintaining the inventory etc. It also involves them in keeping the liquidity of the company to run current operations (Eker and Aytaç, 2017). Apart from this, it also helps in making the related debt decisions within the company, which basically impacts the profitability of the company.

Conclusion

As the decisions are made in the real-time basis, it helps managers use their acumen which is gained with the help of working on the practical aspects of the managerial accounting. This better decision making with the help they seek insights about the high-level plans, forecasts and also about the budgets which remain at the centre of the better managerial skills for a manager in any organizations which wants to minimize the costs and increase the operational efficiency

Discussion-2

 Manoj Kumar Muthoji 

 

           Managerial accounting makes use of some of the tools that will help organizations in developing an analytical approach and arriving at a conclusion that will help them in a better understanding of the situations. This kind of understanding is very much essential for organizations to help them in the process of decision making. In my organization accounting information helps us in understanding the important issues relating to the budget allocation for a project, performing the process of business analysis, and understanding the cost volume profit analysis. Our organization makes use of managerial accounting as an important decision-making tool to ensure that they do not fall into risk easily. Managerial accounting applications will help in providing organizations with quantities analysis for different types of decision opportunities. 

      This application also helps in considering related factors and in the evolution of existing problems in future problems that can arise in an organization. It also helps in evaluating the records and understanding the important factors which will be determining the approach to be taken by the organizations. My organization also make use of managerial accounting information tool for analyzing the transactions and for recording the financial information belonging to the organization. Making use of this tool for decision making will help in drawing and effective conclusion by comparing it with the financial analysis and by understanding the performance of an organization with the information that has been collected. Bulaki (2020) states that “Managers can do analysis and plan the activities of the organization. For example, if the recent data shows a dip in the sales for a certain region, then the sales manager can advise his team and plan some action to rectify the situation.” 

Discussion-3

Samuel Prathipati - Sunday, 28 June 2020, 1:10 PM

 

Introduction

The concept of managerial accounting in better decision making has been there from decades-long. Managers, across the organizations, are expected to make profound decisions related to the financial aspects of the company, which involves the knowledge about accounting and finance. Managers may have to look into a large amount of data in their day to day life in order to make better decisions (Mohamed, 2018). As managerial accounting plays a vital role in decisions about the operational and financial aspects, its growing role helps managers in making a profound decision about budgets, purchasing decisions, costing etc.

Discussion

Activity-based cost analysis helps managers in determining activities about the production or service line. This also involves customer data to be analysed in order the sell the desired products to the customers, which can be the basis for determining the profitability of the company. As managerial accounting helps in analysing adaptation of data through the data-driven approach, which helps make concrete decisions about the budgeting, costing etc. (Mohamed, 2018). After analysing the financial statement of the company, the managers are better equipped to make a timely and wise decision about the long term projects or production decisions which directly have a say in defining the profitability of the company.  This also involves continuous improvement based on the intelligent analysis of the financials of the company.

The process of decision making involves gathering information, identifying alternatives, choosing the better alternative and taking action. In this whole process, which involves planning, controlling, and making informed decisions involves the knowledge about the processes which cater to the financial status of the company (Ishizaka & Siraj, 2018).

Conclusion

The managers become competent by making well-informed decisions about the margin analysis, constraint analysis, capital budgeting, trend analysis and the product costing; all these remains to the core of any company which makes the need to apply managerial accounting to the day to day decisions making activities done by the smart managers.