Managerial Accounting Practices

The purpose of managerial accounting (Vitez, 2013) is to track, record, and report in order to keep track of financial information needed for managerial review. Another purpose that managerial accounting is used for is to decrease expenses, increase cash flow, increase financial returns, and make better business decisions. Each of the terms has its own purpose in managerial accounting which makes the business successful. Decreasing expenses is part of managerial accounting because it can inform companies on how to reduce their operational expenses within the company. Managerial accounting purpose is also setup to help the owners of businesses with an analysis of resources used to produce goods or services. This information can give them an idea of what they could possibly do to cut the cost of production by using a less expensive material without it affected the quality of the overall product. Managerial accounting purpose is to increase cash flow within the company by creating a budget so the company has insight on their future business expenses.

Managerial accounting purpose (Vitez, 2013) is to increase financial returns by giving the business owner a financial forecast that relates to consumer needs and potential sales. This can provide them with information needed to meet the consumer demands such as what is selling and at what price. The purpose of managerial accounting in the business decision is to provide managers with a quantitative analysis that can be used as a decision making tool. Managers use this tool in order to make the best decision for the company's future.

Managerial accountants support strategic decisions by providing information for the decision making process and planning within the company. The strategic decisions are made up of information that is obtained by managerial accounts. Managerial accountants (N/A, 2012) have a range of reports that they must complete which mainly focus on businesses and managers performance that are compared to the actual results of overall plans of the business. For example some of the reports would include: order backlog, capacity utilization, sales, and orders received. This is how managerial accountant support the strategic decisions made within the organization or company. Managerial accountants prepare the data that is most information to the company financial situation and how to keep the business successful. Some managerial accountants are part of the strategic decision because they analytical reports which can be used to investigate the exact problems within the reduction of product. This could cost the company a lot of money by not knowing what the exact problem is. Another part of the strategic decision for managerial accountants can be reports that are used to analyze new opportunity and create new business solution.

Managers can implement (N/A, 2012) different strategies by creating posters, websites, ads, slogans, memos, and events which are all different