Using the GCU Library, locate a journal article about how managerial accounting helps businesses make decisions
Topic 1 DQ 1
Using the GCU Library, locate a journal article about how managerial accounting helps businesses make decisions. In the subject line of your post, include the name of the article you read. Then, in your initial post, provide a link to the article and a summary followed by your reaction to the article. The summary should be approximately 250 words and the reaction should be approximately 150 words. The summary should describe the major points of the article, while the reaction should demonstrate your interpretation of the article and how you can apply that knowledge.
Do not choose an article that one of your classmates has already posted. To participate in follow-up discussion, choose one of the articles that a classmate has posted and provide your own reaction to it. Note: It may be challenging to find a relevant article if you do not use the library.
Please include proper citations in your discussion post. Points will be deducted if proper citations are not used.
Expert Answer and Explanation
From the GCU Library, the journal article The Role of Management Accounting in the Decision-Making Process by Sardar Jalal Braim investigated the role of management accounting in decision-making. Management accounting is one of the critical financial practices of any organization. According to Braim (2020), management accounting is significant in providing relevant financial and non-financial information that assists managers in planning, controlling, and evaluating business operations. The study findings showed that proper maintenance of management accounting reports is critical in enhancing strategic decisions, optimizing resource allocation, and improving overall organizational performance. The article by Braim (2020) was crucial in linking theoretical concepts with practical applications.
The study’s methodology was vital in the arrival of the concrete findings. The study utilized a literature review and theoretical analysis to arrive at the findings. Using previous sources influenced the introduction of case studies and other statistical approaches to establish the intersection of management accounting and decision. The study supporting these previous sources used practical examples where management accounting tools like budgeting, variance analysis, and performance evaluation were helpful in decision-making.
The qualitative research findings showed an intersection between managerial accounting and the decision-making process in an organization. Specifically, the study showed managerial accounting enhances decision-making by providing timely, accurate, and relevant data, identifying cost drivers, and optimizing operational efficiency, and is instrumental in long-term strategic planning and risk management. Additionally, the study indicated that some organizations fail to leverage managerial accounting in decision-making because of a lack of integration with strategic management processes. Moreover, the study showed that management accounting has evolved from traditional practices, strategic decision support, and sustainability considerations.
Reaction to the Article
Braim (2020), in the article “The Role of Management Accounting in the Decision-Making Process,” successfully investigated the role of management accounting in decision-making. The author effectively pinpointed that the current managerial accounting practices are data-driven, increasing the success of the decision-making process. Furthermore, the article effectively aligned with broader sustainability and corporate responsibility trends. Given that these are contemporary elements affecting modern organizations, their mention in the article increases its credibility and relevance.
However, the research must incorporate quantitative research to establish the correlation between managerial accounting and decision-making. Quantitative research design objectivity is crucial for practitioners and policymakers who require concrete data to make informed decisions (Zyphur & Pierides, 2020). In addition, despite the article mentioning the role of managerial acting in sustainability and corporate responsibility, it leaves out artificial intelligence, which is equally essential to contemporary organizations.
Artificial intelligence has been integral in multiple organizational practices, and it would be prudent to indicate how the technology is reshaping managerial and financial accounting (Petcu et al., 2024). Nonetheless, the article was instrumental in suggesting that management accounting is no longer merely a back-office function but a central element of the decision-making process.
References
Braim, S. J. (2020). The role of management accounting in the decision-making process. Near East University. https://www.researchgate.net/publication/359441985_THE_ROLE_OF_MANAGEMENT_ACCOUNTING_IN_THE_DECISION-MAKING_PROCESS
Petcu, M. A., Sobolevschi-David, M. I., & Curea, S. C. (2024). Integrating digital technologies in sustainability accounting and reporting: perceptions of professional cloud computing users. Electronics, 13(14), 2684. https://doi.org/10.3390/electronics13142684
Zyphur, M. J., & Pierides, D. C. (2020). Statistics and probability have always been value-laden: An historical ontology of quantitative research methods. Journal of Business Ethics, 167(1), 1-18. https://doi.org/10.1007/s10551-019-04187-8
Topic 1 DQ 2
Please go to Topic Focus 1 at the end of Chapter 1 and review the materials provided regarding C&C Sports.
Do a SWOT analysis (Strengths Weaknesses Opportunities Threats) for C&C Sports based on the materials provided.
To participate in follow-up discussion, ask questions and post comments regarding classmates’ posts, or respond to follow-up questions posted by the instructor.
Please include proper citations in your discussion post. Points will be deducted if proper citations are not used.
Expert Answer and Explanation
The following is a SWOT analysis of C&C Sports;
Strengths – The company has several strengths that the company has. The company has decided to establish its operations locally allowing it to deliver its products to the market on time. Local production may also resonate well with some of the conservative consumers compared to those that are foreign making it a strength for the company. The company also has a strong and loyal consumer base who have been supporting its sales even during periods of operational decline (Davis & Davis, 2020).
Weaknesses – Some of the weaknesses noted in the company include low operating capital, which puts the company at a disadvantage compared to other larger companies in the same market (Davis & Davis, 2020). High operational expenditure also puts the company at a disadvantage compared to those that have operations in foreign countries.
Opportunities – Some of the opportunities available for the company include branching off to new products (product diversification). The company may also decide to expand its operation in new markets.
Threats – The company has several threats including increasing inventory which could lead to obsolescence and loss. Increasing small and apparently expensive debts instead of retaining long-term debts which are cheaper and offer better repayment periods (Davis & Davis, 2020).. This as seen in the case affects the company’s liquidity and may negatively influence its operations.
Reference
Davis C. E., & Davis E. (2020). Managerial Accounting, Enhanced eText (4th ed.). John Wiley & Sons. ISBN-13: 978EEGRP40373
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