Question

The role of accountants is changing, including those practicing managerial accounting. Using the "Definition of Management Accounting" topic material, discuss and compare the evolving role of management accountants and whether or not something similar is occurring in your current profession or desired discipline (e.g., economics, marketing, management).

Answer 1

Managerial Accounting is a process of identifying, measuring, analyzing, communicating financial information to the managers for organization goals.Managerials accountants use information related to cost and revenue from sales of goods that are generated by the company.
The objectives of Management accounting are as follows:-

• Helps in interpretation of financial information
• Assists in planning and developing future planning.
• Helps in Organizing and motivating employees
• It also helps in controlling the cost of the organization.

With the evolution of technology there has been a rapid change in do management accounting. In 1980s management accounting function was located at the end of the information supply chain, now it has moved from lower end to higher end of the chain So, now management accounting now used for planning, budgeting, goverance process, providing risk management, internal control .With these changes expert in management accounting help the organization to become more competitive and leader in the market.
With management accounting is evolving and getting greater value in the field of accounting ,there has been observation today managerial accounting is not only used in supply chain but also in marketing,operations,finance for better optimum utilization of resources.

I will give you e.g. how Marketing Managers are using Managerial accounting for their day to day activities:-

• Marketing and Managerial Accounting department are separate and distinct, but they should work together to monitor sales and it will be able to track sales trend, marketing campaign. If management accounting are used it will allocated cost efficiently and run business smoothly.
• Marketing cost represent a significantly amount of cost in the product. Big companies like HUL,P&G they need to promote product ,give incentives ,advertising in Television,Newspaper,this need to be maintain in proper accounting to know the actual cost of the product.
• Accounting departments can advise management with information regarding advertising cost, gross sales, sales strategy, and advertising cost. So managerial accounting can tell whether the campaign was successful and what percentage of cost proportionate to revenue earning.
• Marketing team can give accounting team with business forecast, which helps in allocating business resources effecitienly. The two team i.e. marketing and accounting team with the help of managerial accounting can decide the budgets for future marketing campaigns, future strategies, and face competitors to stay in top position.

Conclusion: - So accounting is not used in manufacturing sector to calculate cost but also it’s used in budgeting, future expansion, controlling cost. With the rapid change of technology and creative mindsets there is a huge scope for managerial accountants to get a wide range of jobs. For staying in the markets and accountants should brush up their skills and stay updated with the knowledge so that they don’t face job crisis.