Question

Of all of the managerial accounting topics, which one(s) do you think you might use in a career as a controller? Why is this important, and how do you see using this managerial accounting information? Please provide a reference link.

Answer 1

Of all of the managerial accounting topics, I find cost-volume-profit analysis to be most beneficial in my career as a controller. It is technique to measure how changes in cost and sales volume impact the profit of a company. It acts as an effective tool effective tool that also helps me to engage in decision making in regard to the future operations; and also to concentrate on the relationship among cost, revenues, and changes in volume, taxes and profit. Thus the biggest benefit of CVP analysis is the evaluation of the cost volume changes within a company and the impact of these changes on generation of revenue. By analyzing the relationship between revenues and costs it is helpful in selecting the most profitable product. Cost-volume-profit analysis is also an effective tool for controlling the unnecessary production as well as distribution costs.

References:

https: //benefits-drawbacks.blogspot.com/2018/03/advantages-of-cost-volume-profit.html

https ://www.mbaknol.com/managerial-economics/benefits-of-cost-volume-profit-analysis/