| A variety of organisations affect our daily lives. | | | | they provide is financial, there is a strong trend |
| Manufacturers, retailers, service firms, agribusiness | | | | toward the presentation of substantial non-financial |
| companies, non-profit organisations and | | | | data as well. Actually, they supply all kinds of |
| governmental agencies provide us with a vast | | | | information to management and act as strategic |
| array of goods and services. All of these | | | | planners in support of management's role in |
| companies share two common things. First, they | | | | decision making and managing the organisation |
| all have a set of goals or objectives. A bank's | | | | activities.Compared to financial accounting, |
| goals might be profitability and customer service, | | | | managerial accounting is a young discipline that |
| or a hotel's goals might be total quality services | | | | focuses on the needs of managers within the |
| and cost minimisation. Second, in pursuing an | | | | organisation, rather than interested parties outside |
| organisation's goals, managers need accurate | | | | the organisation. As a result, managerial accounting |
| information. The information management needs | | | | concepts and tools are still evolving as new ways |
| range across financial, production, marketing, legal, | | | | are found to provide information that assists |
| and environmental issues. Generally, the largest | | | | management. Moreover, the business environment |
| the organisation is, the greater is management's | | | | is changing rapidly. For managerial accounting to be |
| need for information.Managerial accounting is the | | | | as useful a tool in the future as it has been in the |
| process of identifying, measuring, analysing, | | | | recent past, managerial accounting has to be |
| interpreting, and communicating information in | | | | studied and improved.In the 21st century the |
| pursuit of an organisation's goals. Managerial | | | | business environment is changing very rapidly. |
| accounting is an integral part of the management | | | | These changes are reflected in global competition, |
| process, and managerial accountants are | | | | rapidly advancing technology, and improved |
| important strategic partners in an organisation's | | | | communication systems, such as the Internet. |
| management team. The management team | | | | The activities that make an enterprise successful |
| seeks to create value for the organisation, by | | | | today may no longer be sufficient next year. A |
| managing resources, activities, and people to | | | | crucial role of managerial accounting is to |
| achieve the organisation's goals effectively. The | | | | continually assess how an organisation stacks up |
| day-to-day work of the management team | | | | against the competition, with an eye towards |
| comprises four activities: decision making, planning, | | | | continuously improving. In fact, moving away |
| directing operational activities and | | | | from a historical cost accounting perspective and |
| controlling.Nowadays managerial accounting analysis | | | | towards a proactive cost management is the |
| is considered so crucial in managing an enterprise | | | | challenge that an enterprise has to face. Assigning |
| that in most cases, far from playing a passive | | | | the costs to a larger number of cost pools that |
| role as information providers, managerial | | | | better represent those activities that are |
| accountants take a proactive role in both the | | | | responsible for their birth, portrays the general |
| strategic and day-to-day decisions that confront | | | | idea upon which future managerial accounting will |
| an enterprise. Although much of the information | | | | evolve. |