Question

• Often when we talk about managerial accounting information, we think of manufacturing. How can we use managerial accounting information to assess the profitability of an organization other than a manufacturing business?

Please be sure to validate your opinions and ideas with citations and references in APA format.

Answer 1

In a much narrower sense is managerial accounting information associated with manufacturing. Instead it is used extensively by organisations for internal decision making by way of performance reporting. It can be used through out all the types of organisation for analyses of events and operational matrix by transforming raw data into structured information for decision making. Following techniques can be used for the purpose:

• Margin analysis
• Contraint analysis
• Capital budgeting
• Inventory valuation
• Trend analysis