Accounting Information For The Manager - 1615 Words

Accounting information for the Manager Decision making Introduction In the context of the complexity of the enterprise-wide expansion characterized by globalization and management activities associated with the modernization, if any information for the decision making process and the performance measurement of the business management is not fulfilled, the company will not be the growth and development to adapt to changes in the business world. The effective management is required for this complicated business environment. It is obvious that logical analysis is essential in environment. In order to respond to this need, it is important for top management and business leaders to have skills to use Accounting Information. Accounting†¦show more content†¦Therefore they need guidance that is provided in form of information. Management Accounting is the solution to solve such problems. Accounting is defined as the process of measuring, identifying and communicating economic activity. The main function of Management Accounting Information is to make information available to various management to help for decisions of how to allocate scares resources within a company, in other word, for decision-making. Management Accounting is the accounting system that intends to be used in the management performance evaluation and management decisions to provide information to the decision makers inside the entity, such as managements. Since Management Accounting Information is mainly used in the company s internal workers, it doesn’t necessarily to follow the law or any official form, unlike financial accounting. It is characterized by being created in a format of each company’s perspective. The purpose of Management Accounting are basically as follows; 1) To provide information for manager to make decisions with using the scarce resources. It is included to make sure what the most desired area is, and to determine the goals and objectives of the company. 2) To provides necessary information for controlling, by using the materials and human resources within an organization, 3) T to provide information needed to report it. 4) To provide the information to