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Introduction to Managerial Accounting

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In addition, what price should be charged to the product to replace the production costs and earn a profit that is optimal? In addition, they have to plan how to finance the operations and how to manage the available cash. That is important in keeping the activities of the business to work smoothly. · Decision making. Managers need managerial accounting information when they decide whether or not to commence a certain project. Managerial accounting will help them compare the benefits of various opportunities and help them decide which ones to choose. · Performance measurement. Managers have to compare the budgeted figures to evaluate the performance of the business to actual results of the operation. They will have to use certain techniques of managerial accounting such as standard costing to assess the performance of various departments (Weygandt, Kieso, amp. Kimmel, 2010). Managerial accountants keep record financial information for their firms that are used by the management team of the company to aid in the process of decision-making. Managerial accountants do develop budgets, perform asset, cost management, and create necessary reports to be used by the Directorate team. In every company managers to significantly depend on the data provided by managerial accountants to develop business strategies that are effective. Owners of small business make most of the decisions within their company. The data offered by managerial accountants can affect the liability of the owner to make business decisions that are sound (Weygandt, Kieso, amp. Kimmel, 2010). The main purpose of managerial accounting in business is to support decision making by collecting, processing, and communicating helpful information that would assist the managers. The information would help the managers to plan, control, and evaluate the processes of the business and strategy of the company (Albrecht, 2007).