I would say managerial accounting can (although nowhere near perfectly) be summed up by the word metrics (Managerial Accounting, 2019). Yes, the three overall goals are planning, controlling, and decision making, but what does that exactly entail? Therefore, I will focus my objectives on the concept of financial metrics:
Encompasses many of the concepts in accounting, but in a way that is focused on obtaining internal data so it can be summarized and presented to a specific audience.
Assist executives and business leaders make decisions based on financial metrics that identify the state of the business
Create a standardization process that can be used to compare financials with other companies in the industry.
In my work experience, our executives use managerial accounting by collecting data from the entire Enterprise Unit and creating reports and dashboards and share them across with everyone. This allows everyone in the company to know the health of the business. While the executives are the ones who are ultimately making decisions based on these figures, sharing them with everyone helps the entire Enterprise Unit understand why these decisions are made, and I really appreciate that.
Resources
Managerial Accounting. (2019). Retrieved July 4, 2019, from https://www.principlesofaccounting.com/chapter-17/managerial-accounting/
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