July 30, 2008

Managerial accounting

Managerial accounting plays an important role in manufacturing, construction or financial services industry. Incremental analysis is the main decision making model thats related to the managerial costing. Accountants must be specialised in financial accounting and management accounting in order to equipt themselves with the appropriate business acumen and professional qualification.

Nowadays, accountant in public service industry must expose themselves in managerial accounting due to high decision making process, expectation and also various problematique solutions that required accountant to have an idea in reviewing findings and post-action.

Decision making tools are provided if the industry involve in the manufacturing where all the cost incurred are determine by the activity. Accountants must be realistic in delivering ideas and comments when come to incremental analysis. One the most common situation that requires incremental analysis is when an organization has to rent out or manage their building or property themselves.

The cost that must be relied on is the recurring cost and pre-determine cost which accountant must have a realible data in order to perform it.