Accounting Information (Essay Sample)
aacounting information play a crucial role in the managerial decision making process. this term paper strives to explain the usesfullness of the accounnting information in the effective decision making process . it also gives the consequences that follow if the accoutning information are not used in the decision making process.source..
Accounting information are tools used in the provision of feedback about the operations and the profitability of a business organization. As a manager of any organization, the accounting information are indispensable due to the fact that they give detailed information about the aspects of the business that works well and the ones that have a room for improvement. In as much as accounting information gives an insight about the business progress, it usually not the conclusion about the progress of the business CITATION Eze19 \l 1033 (Ezenwoke, 2019). However, it’s a good point to start the process of asking questions and for the making of direct observation.
In the decision making process, the manager is expected to pay keen attention to the accounting information due to a number of reasons. To start with, the accounting information highlights the relevant cost analysis which is plays a crucial role in the determination of the existing expenses and also gives ultimate opinions for the future business activities.
Secondly, the accounting information helps in determining the target audience for the business CITATION Abd20 \l 1033 (Abdusalomova, 2020). Most often than not, players in any market segment ought to pay special attention to their customers by representing an anchor of the business with the corresponding features such as age, location, lifestyle and personal values among others of their target audience. All this information is found in the accounting information.
Moving forward, the accounting information is helpful in the definition of the projected business budgets which are expected to comply to the business’s sales history and marketing database CITATION Rik18 \l 1033 (Rikhardsson, 2018).in this regard, the management accountants play a crucial role of analyzing the former business activities and defining the investments for future action CITATION Eze19 \l 1033 (Ezenwoke, 2019). Other important roles played by the accounting information in the managerial decision making process includes planning, controlling and evaluating of the business activities.
The productivity of the managerial decision
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