Top PDF The Usefulness of Accounting Information in Management and Decision Making By Managers of Business

The System of Management Accounting Information to Support Decision Making in Business

The System of Management Accounting Information to Support Decision Making in Business

Vietnam's accession to the world's trade and economic organizations requires the activities of enterprises to develop more and more strongly, diversely and abundantly. In order to meet the needs of such fast progress, accounting work in enterprises must also be considered, adjusted and adapted to become more improved. On the other hand, manual information systems in enterprises also need evaluating to be gradually replaced by information systems which are automatically processed by computer ones. The rapid growth in the economy has created many changes in accounting. The work of the management accountants must find ways to establish a suitable database as well as have a flexible accounting management system to meet the current practical needs, which are providing management accounting information for administrator to make investment decisions.
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The use of Accounting Information in a Business Decision making process at all management levels in Slovenian Companies

The use of Accounting Information in a Business Decision making process at all management levels in Slovenian Companies

Pri vprašanju, v kateri obliki anketiranci uporabljajo informacije za sprejemanje poslovnih odločitev, je primerjava odgovorov glede na velikost podjetja pokazala, da predhodno določene [r]

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DEVELOPMENT OF DECISION MAKING BY MANAGERS WITH FINANCIAL AND ACCOUNTING INFORMATION

DEVELOPMENT OF DECISION MAKING BY MANAGERS WITH FINANCIAL AND ACCOUNTING INFORMATION

florinb@seap.usv.ro Abstract. The quality conditioning of an accountant's job corresponds thus with the competitive level in the company. The operationalization of the used specialty language, on the one hand and on the other hand the efficient management of the financial situation acquire a significant role regarding a strategic partnership at the micro and macroeconomic level in business as long as the managerial structures of understanding the economic reality are put in correlation with the accountant's socio-professional training in the firm/concern. Even if the professional accountant is paid by a determined client, which is the final beneficiary of the development service or audit financial statements, the information drawn from these financial statements are used by those who form the public. In this way, the accounting profession is distinguished from the other profession by accepting its responsibility to the public. There are numerous studies on an international level, dealing with various methods of improving the decision making process. The most competitive multinational companies have already considered the opportunities favored by financial adjustments, directed at streamlining the accounting functions and they have also trained professionals in the field of accounting that would successfully perform as business partners, thus assisting the decision making process within the organization. The financial adjustments have become essential for many companies that have thus gained a significant competitive advantage. The plan for improving the efficiency of the financial function is very clear, but the training of the business partners who would provide assistance in making decisions still remains a challenge. The economic perspective on the account reality highlights a pragmatic materialization, at the company’s level, of some specific skills designed to support the important role that the financial situations have. So, the individual significations of the accounting practice generate inside society different attitudes of the economic actors.
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Using Accounting Information in Decision Making of Hospitals Managers

Using Accounting Information in Decision Making of Hospitals Managers

Management accounting was seen as a “technical activity” for the pursuit of organizational goals and was not used to make decisions. It only was a calculating means. There was not an independent system for management accounting and managers used information such as cost, comparison items and financial ratios which were outputs of bookkeeping (Parkash, 2013). Financial measures were used in evaluating the performance and investment projects (Abdel-Kader and Luther, 2008). Padovani, Orelli and young (2014) showed that accounting systems is a more vital part of the hospitals’ management control system and cost management objectives. Cao, ToYabe and Akazawa (2008) argued that cost saving in an important factor in hospitals management. They showed that a cost accounting system controls the cost in hospitals. Lan (1999) indicated that hospital administrators are using the control systems. The systems are positively correlated with hospital performance and motivate actions designed to improve performance. The results showed that medical personnel-physicians and nurses- are gaining familiarity with hospital accounting and control systems.
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Managerial Decision-making and Management Accounting Information

Managerial Decision-making and Management Accounting Information

The social factors include in the analysis the diverse cultural and demographic aspects of the society, relating to e.g. patterns of behaviour, tastes and lifestyles. The socio- cultural dimension of the telecommunications market has been strongly affected by the change occurred in the customers’ preferences and life habits, concerning the commu- nication channels used daily. The switch from voice to data traffic, that has led to the Interned being the preferred communication channel, exploitable by the multitude of ap- plications, which can be used on smartphones and other smart devices. This is driving the expansion of digital marketplaces, opening many new business opportunities but simultaneously competition is also intensifying. The technological factors relate to the application of new inventions and ideas such as R&D activity, automation, technology incentives and the rate of technological change. The speed of technological change is especially important in trade sectors such as telecommunications, as it is practically transforming the whole industry and the ability to remain competitive depends strongly on the company’s capability to implement new technology
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Usefulness of cash flow in business decision making

Usefulness of cash flow in business decision making

Why has EBITDA received much attention in corporate finance? Why not simply use cash flows? Possible reasons include, 1) EBITDA involves less components than cash flows making it easier to forecast, 2) EBITDA in general looks better since it tends to be larger than the cash flows of operations, and 3) the statement of cash flow has been common, but many managers are not as familiar with the statement of cash flows. One consideration is that a company's capital expenditures typically vary from year to year. Income measures try to account for this by unnaturally distributing the expense of capital investments over the years in which they will be producing value for the company.
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THE USE OF THE ACCOUNTING INFORMATION IN DECISION MAKING IN THE HOSPITALITY BUSINESS i

THE USE OF THE ACCOUNTING INFORMATION IN DECISION MAKING IN THE HOSPITALITY BUSINESS i

In hospitality business, managers need to know how financial transactions affect performance and financial position and how to provide financial information for external users. Also managers have to know how resources were used, how human resources were motivated to carry out a selected course of action. In this case managers must have at their disposal internal information provided by managerial accounting. In our opinion, a hospitality managerial accounting must be organized to provide information for planning alternative short or long term courses of action and to decide the best course of action to be implemented. Without management’s understanding of the information being provided, management’s effectiveness will be greatly reduced (Jagels & Ralston, 2007). We think that for the Romanian hospitality business it is necessary the organization of a managerial accounting system to analyze the performance of each department and to decide how to increase the profit and the quality of all services. To attain this target three types of information are necessary: information about costs; information about prices and information about contribution and profit policy.
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MANAGEMENT INFORMATION SYSTEM TO HELP MANAGERS FOR PROVIDING DECISION MAKING IN AN ORGANIZATION

MANAGEMENT INFORMATION SYSTEM TO HELP MANAGERS FOR PROVIDING DECISION MAKING IN AN ORGANIZATION

4 . CONCLUSION: MIS differ from regular information systems because the primary objectives of these systems are to analyze other systems dealing with the operational activities in the organization. In this way, MIS is a subset of the overall planning and control activities covering the application of humans, technologies, and procedures of the organization. Within the field of scientific management, MIS is most of ten tailored to the automation or support of human decision making. Management information systems (MIS) make it possible for organizations to get the right information to the right people at the right time by enhancing the interaction between the organization’s people, the data collected in its various IT systems, and the procedures it uses. It brings together the raw data collected by the various business areas of the organization, which, while useful for specific functions such as accounting, does not provide, by itself, information that can be used to make decisions.
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Management Accounting Information in Decision-making: Unveiling Possibilities for AI

Management Accounting Information in Decision-making: Unveiling Possibilities for AI

ProcessCo Development Manager Finnish 1 h 16 min ManufacturingCo Business Controller Finnish 2 h 3 min ManufacturingCo Business Unit Manager Finnish 48 min Avg. 1 h 39 min I managed to book interviews with many relevant persons but some of them remained unobtainable. HardwareCo case lacks insights especially from the sales department. A sales director and a salesperson would have brought important information to this anal- ysis. In addition, at least one person from the subcontractor would have benefited the case as well. Despite having only two informants, AnalyticsCo case is not missing any crucial information, in my opinion, since we were able to interview a co-founder and a chair of the board who are part of the top management and the whole company is quite small. ProcessCo, however, misses an informant from the user side of the investment, although it probably does not have a significant impact on the research questions but the overall understanding of the investment process. From the data point of view, Manufac- turingCo is the weakest case. Despite the interview with the business controller being one of the best in terms of relevance and context, there is an information gap. The busi- ness unit manager was able to give us only the 48-minute interview where we had to rush through some questions, and we used most of the time when the business unit manager explained what kind of target setting system they have in general. Other view- points would have been needed for a more comprehensive understanding of the case, but I was not able to get more interviews.
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Cartoon Graphics in the Communication of Accounting Information for Management Decision Making

Cartoon Graphics in the Communication of Accounting Information for Management Decision Making

A group of 100 MBA Finance students of the City University Business School, London, comprise the respondents. They are required to make failed/non-failed decisions on a group of companies when presented with financial information for those companies represented alternatively in the form of simplified accounting statements, financial ratios and schematic cartoon faces. An evaluation of the solvency of companies, with whom they might potentially do business, is viewed to be an important management decision:

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Accounting Information in a Business Decision-Making Process – Evidence from Croatia

Accounting Information in a Business Decision-Making Process – Evidence from Croatia

Author emphasis function of managers as information users. „Managerial team is the one that needs the information in determining the performance of the economic entity but also in making decisions for future activities. When we speak of a mana- gerial team we are talking about a user which can be the manager, the treasurer, the board of directors, the management team, etc., in other words whoever is staying at the helm of economic entity and is giving direction to the development. For them, the interest is to know the information on the operating activity of the entity, on the fund- ing and investment activity in order to make their decisions“ (Luminita, 2014, p. 675).
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The Usefulness of Management Report On Investments Decision-Making In Egypt

The Usefulness of Management Report On Investments Decision-Making In Egypt

4.6.1.1 The Governmental Ownership (State-Ownership) Previous studies presented some mixed explanations to the effect of governmental ownership on the disclosure level. Some argued that the state-ownership would suggest that the government obtain all information they need from the companies, therefore, the managers in these companies could think that there will be no need to disclose more information to the public (Naser and Nuseibeh 2003). However, many scholars criticized that notion. Eng and Mak (2003) pointed out to the conflict and moral hazard in the state- owned companies, as they have national objectives from one hand, and represent economic units that face other competitors and target profits from the other hand. Therefore, they argued that the managers tend to disseminate more information in order to explain both the national objective and the profit objective. Furthermore, Li and Harrison (2008) argued that the significant governmental ownership motivates the managers to disseminate more information for two reasons; first, the high volume of information enhances the managers’ accountability to the public; second, the bureaucrats consider that disseminating more information sends implicit messages that imply that there is nothing to hide within our government properties, which is likely to support their political interests. Moreover, the expectations that the state-ownership correlates positively with higher disclosure could be explained by the government desire to be regarded as open to transparency and responses highly to the users’ needs (Chen et al. 2006).
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Accounting agricultural business from scratch: management accounting, decision making, analysis and monitoring of business processes

Accounting agricultural business from scratch: management accounting, decision making, analysis and monitoring of business processes

focus; systematic nature; and clearly defined quality of providing information for decision- making purposes. Information management accounting in modern conditions should have certain properties (reliability, efficiency, relevance, flexibility, etc.) and qualitative characteristics (materiality, relevance, reliability, usefulness) for managing business processes and activities of organizations of seedling producers. This requires taking more active steps to improve planning, management accounting, increase their control and analytical functions in the management system for growing seedlings of vegetable crops.
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Place of Accounting Information in Business Decision Making Within Tuzla Canton Companies

Place of Accounting Information in Business Decision Making Within Tuzla Canton Companies

Besides that, the current position is also the result of specifics in managing current transitional economy. That is, poor economic situation and the burden of inherited inefficiency dictates that the highest level of management has to indirectly manage all operation flows, including the lowest tasks. From that, the higher level of management does not transfer authority to lower levels, but it actually concentrates all power on them. It would be normal to have the operative management directly responsible to control everyday operations, middle management directly responsible for short term planning and activity coordination that are necessary for goal attainment, and top management responsible for long term planning and goal recognition [3]. The consequences to this accounting position are seen in a fact that the accounting system is mostly focused on the highest level of decision making, which should be only for strategic development of a company. This level of management has adopted the authority of the tactical level and it actively direct lower flows of operations through narrower organizational units. This has made tactical managers to go lower into the operational level management which made the operational managers the most responsible for all the tasks. This approach has shifted the informational flows. Accounting information that has been aggregated for the strategic management needs [4, 12] remained the most dominant basis for decision making. Lowering to the tactical level, strategic managers have not pulled all the adequate information they needed. In order to make decision, they are still relying on aggregated financial accounting information. The reason for this could be either lack of knowledge or the fact that they transferred their responsibility to others, that is, managers responsible for the tactical level even though their authority has been taken from them. Same thing happened to the managers of the tactical level – they kept the information relevant for their level (which is very poor due to the traditional accounting organization), and they did not take over information for the operative level of management. Again, this has been caused by either lack of
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Metacognition and Decision Making in Management Accounting Students

Metacognition and Decision Making in Management Accounting Students

One important challenge that managers should be concerned about nowadays is being able to face different type of employees with different backgrounds and turn them in to useful resources for the company in an ever-changing world. Gaining competence abilities is essential for survival. Competent employees who are continuous learners could raise the companies’ game. Management accountants as business employers are information tool makers for the company. The tools management accountants introduce to the company based on the knowledge behind it shows what position they really are taking in the company. A hindsight controller has the least knowledge of what tool is best for the companies' future and what competition tools the company needs compared to a foresight innovative manager.
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A survey of accounting information critical for planning, control, and business decision-making within an organization.

A survey of accounting information critical for planning, control, and business decision-making within an organization.

9. Use a variety of techniques to analyze and make capital investment decisions. Unlike financial accounting, there are no generally accepted procedures in management accounting. Each firm has its own set of reports, analyses, and procedures. More important than learning the principles and procedures of management accounting is your ability to properly choose and apply those principles and procedures to a situation and then effectively

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Management information systems and business decision making: review, analysis, and recommendations

Management information systems and business decision making: review, analysis, and recommendations

As a cautionary point, organizations should not entirely rely on automated systems-- especially when the decisions to be made have adverse implications to the organization. This is based on the alleged observation that auto systems may sometimes be faulty and thus require frequent periodic monitoring (Demetrius, 1996). So in order not to fall a victim of over-relying on automated systems, Jahangir (2005) advices managers and company owners to ensure that they find a balance in utilizing the human element in operating while assigning some duties to the automate system. By blending the duties of these two extremes, Jahangir states that, this will ensure that both ends of the organization continue to actualize together while maximizing the potential for each side through check and balances of operations done by the management..
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Decision Making Support for Managers In Innovation Management: a PROMETHEE approach

Decision Making Support for Managers In Innovation Management: a PROMETHEE approach

The purpose of this paper is to present a decision making model as a support for selection of innovation management concept using multiple criteria decision making methods. Based on the specific nature of innovation management concepts a novel decision making model was designed. Ten defined innovation management concepts are firstly evaluated using set of criteria, which priorities are expertly evaluated using Saaty method and then the PROMETHEE outranking method is used for evaluating and selecting of innovation management concepts. To apply this model in the practice the Visual PROMETHEE software tool is incorporated to the model. The model was applied on a large manufacturing company. Using our approach in this company, the concept of value analysis was selected as the best. This study is limited for decision making processes in large companies. The results of Saaty method are based on expert but subjective assessment and therefore relevant for this particular company at that particular time. In addition, we suggest that this model can help managers to solve similar decision making problems using combination of Saaty method or analytic hierarchy process together with Visual PROMETHEE software. The logic and process of the decision making model elaboration as well as the decision model itself can be used as a framework for managers facing decision making problems with similar nature as innovation management concepts i.e.: ERP systems, information systems, technologies, business models.
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The effects of cloud technology on management accounting and decision making

The effects of cloud technology on management accounting and decision making

The interactions of managers with cloud-based systems is something which management accountants (as providers of information) should closely monitor, as cloud systems can allow managers to access decision-making information in new ways. for example, using a cloud-based system a manager can access information at any time using a smart device. While this has advantages, two issues need to be considered: 1) the manager may not be physically close to an expert such as a management accountant to verify or question information and, 2) the accuracy/completeness of the information. our survey reveals that cloud-based systems are still primarily accessed by using a corporate computer or laptop (73%), with corporate smartphones and tablets being used less – about one-third of the time. Personal devices are used much less, which is better from a security viewpoint. despite the potential flexibility offered by the cloud, our findings also show most access happens within the business premises and within working hours, a trend common across all business areas. Thus, based on our data, cloud technology has not yet affected the physical time and space within which decisions are made. of course, we cannot say that this is the case in other countries, where cloud-usage and work/life balance may be culturally different. our findings show that information from cloud-based systems is mainly presented in a mixed graphical/numeric format (84%), with the vast majority of it rated as detailed, timely and complete. The information is primarily in a standardised format (from eRP or similar standardised systems), and just under half of respondents have access to self-service type reporting functions – although less than half of those with access to self- service use it frequently. interestingly, finance and management accounting systems are reported as using a mixed reporting format only – implying there is no pure text-based reporting through cloud-based systems. While mixed format reporting is not the sole realm of cloud-based technologies, it may be more amenable to presentation on smart devices. for management accountants, this may ultimately simplify the preparation and communication of key business reports. We also found that cloud technology is used by managers at all levels, although operational managers (71%) were more likely to use it than senior managers (50%).
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The Accountant's Perception of the Usefulness of Financial Information in Decision Making – A Case Study in Portugal

The Accountant's Perception of the Usefulness of Financial Information in Decision Making – A Case Study in Portugal

369 Rev. Bras. Gest. Neg., São Paulo, v.22, n.2, p.363-380, Apr/Jun. 2020. experience (Anand et al., 2002). According to Abubakar, Elrehail Alatailat and Elçi (2018), the level of manager training (explicit knowledge) has an influence on decision making; managers who have more knowledge make more prudent decisions. However, Amoako (2013) argues that academic qualifications are a critical element used in understanding the behaviour of entrepreneurs and managers and, in most cases, are what determines the success of the manager. Therefore, the same authors maintain that for the manager to make the best decisions, they must understand the dynamics and changes posed by business management, which implies having qualifications in higher education. In view of the above, we define the seventh hypothesis:
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