Question

You have seen the different types of budgets and special problems managerial accountants face each day. What are the 5 most important things you learned about the impact managerial accountants can have on the success of an organization, whether for profit or not for profit?

Answer 1

Managerial accounting is the area of accounting that refers to providing information to support internal management decisions in a compnay. Managerial accounting reports are helpful to business for the monitoring of the performance of the company. There are numerous different kinds of managerial activities which can have an impact on the success of an organisation. These are as follows:

--Budget Report: The budget report is considered to be the most fundamental report in managerial accounting. It is helpful for the small business owners to analyze the performance of the company and, if the business is big enough, management may analyze the performance of the department and control costs.

--Accounts Receivable Aging Report: Such reports act as a crucial tool for management of the cash flow for companies that offers credit to their customers. These reports breaks down the customer balances by how long they have been owed and thus provides an overview of credit balances according to age, particularly including separate categories for items that are 30, 60, and 90 days late. It can be beneficial to adjust credit policies to align them with consumers' repayment capabilities.

-- Job Cost Report: Job cost reports provides expenses for a particular project. These are usually compared with revenue estimation so the company can evaluate expected revenue yielded by that project. Such reports are helps leaders for evaluating the profitability of particular types of jobs and optimize their operations by focusing on the jobs that are specifically the most profitable overall

-- Inventory and Manufacturing Report: These reports often include items such as inventory waste, per-unit overhead costs or hourly labor costs. Afterwards the management can match different assembly lines within the company to know where one can enhance or to offer bonuses to the best-performing departments.

--Marketing decisions- Management accounting information helps in setting selling prices and advertising budgets. It also determining the location of a company's markets and how to find a way to reach them