Essay on Role of Managerial Accounting

Essay on Role of Managerial Accounting

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Accountants have been a necessary tool in all organizations such as individual companies, partnerships, schools and governments. Indeed, they have great professional technique in a rule of accountancy that government are able to measure and report financial information as organizations. This can also provide a lot of positive impacts in the running of a business. Research shows there are three main ways accountants can keep business costs down which involve internal and external actions. For internal control, the accountant has a responsibility to monitor finances of a company. Other responsibilities include keeping track of liabilities, duties and taxes. Furthermore, analyses of measurement data on creditors or stockholders are also provided by an accountant. This essay will seek to prove that through principles of financial accounting, cost accounting and cost management, accountants can control the cost of business rather than change demands of customers.
In research, there are three main form of management accounting to control the cost in an organization effectively and efficiently. They are financial accounting, cost accounting and cost management. Financial accounting is used authoritatively to prepare to account information for parties who are outside the organization, such as stockholders, suppliers and banks. Its’ purpose is to provide enough information to make decisions on business cost control and to analyze the business budgets (Baldvinsdottir et al.2009). This role will consummately help the company to forecast their capital in the future. In addition, financial accountant’s primary function of business involves measurement and recording business transactions. Furthermore, they have to provide financial statements ...

... middle of paper ...

... these methods to measure the cost on company activities. So, accountant hasn't responsibility to control customer needs straightforwardly.

References list
Baldvinsdottir , G, Burns , J, Nørreklit, H, & Scapens, R, 2009, ‘The management accountant’s role’, Financial Management, p. 34.
Bana, SE (Panciu) & Sgârdea, F 2009, ‘Cost management and cost control in decisional process of organizations’, Annales Universitatis Apulensis : Series Oeconomica, vol. 11, no. 1, p. 65.
Hoque, Z 2003, Strategic Management Accounting, 2nd edn, Pearson Education Australia, Malaysia.
Jiambalvo, J 2001, Managerial Accounting, John Wiley & Son, New York.
Leer, J 2001, What is cost accounting? Viewed 08 June 2011,
Tatum, M2001, What is Cost Accounting? Viewed 08 June 2011,

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