Management Accounting: Effect Decision Making

INTRODUCTION:
Today, the significance of Management Accounting spreads widely throughout the globe. More companies require Management Accounting to operate their business be it a small firm or large company. Unlike financial accounting, which is used to measure financial performance of the company, managers use management accounting for long-term decision making.
Additionally, by comprehending the skills in practicing management accounting and mobilizing management accounting to contribute to a company’s objectives and goals, it will eventually develop an oganisational units’ functionality (Ahrens & Chapman, 2007).
However, Management Accounting in each country has different perspectives of method of application. In addition, the roles and significance of Management Accounting differs according to country, business and many more as well.
MANAGEMENT ACCOUNTING:
a) Perspective
In Romania, according to Cardos et al (2010), the evolution, method of approach, objectives and goals of management accounting is different (as citied in Reka & Stefan, n.d.). In the decision-making process for managers in Romania, management accounting information is crucial, but, information are obtained the old way. However, the rethinking of managerial practices and revamping the current accounting system is triggered by organisational functions (Reka & Stefan, n.d.). Huber (1998) stated organisational function refers to knowledge management, organisational learning and vitally, survival (as citied in Reka & Stefan, n.d.).
The evolution of Romania’s management accounting is a tad slow as both political and social regime had a significance influence on the economy and business environment development of Romania. Therefore, analysing and monitoring the bus...

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...h budget 10 36 12
12 Flexible budget 19 16 23
13 Annual budget 14 39 5
14 Standard costing 11 44 3
15 Variance analysis 21 28 9
16 JIT system 18 31 9
17 ABC / ABM 14 29 15
18 Customer profitability analysis 16 25 17
Table 3
In table 3 it shows the Global Management Accounting Practices Usage, a survey and study conducted by Ilias et al (2010).
CONCLUSION:
Today, it is evident that management accounting practice is indeed and is seen as an important material that every company and firm needs to implement. Although the perspective and the practices of management accounting vary from one country to another, it does not change the significance of management accounting. Needless to say, without management accounting, there will not be any logical decision made for long term plans regardless of which approach, whether it is through the new method or traditional method.