Managerial Accounting's Role
Keywords:
managerial accounting, managerial reporting, information systems, information technologiesAbstract
The practise of managerial accounting is very important because it enables businesses to make educated business choices and progress toward their financial and strategic objectives. One of the most important functions of managerial accounting is to provide management with up-to-date and correct financial information as quickly as possible. This gives management the ability to monitor performance, recognise patterns, and make choices based on reliable information. This involves generating financial statements, budgets, projections, and variance studies, as well as doing cost assessments to discover areas where expenses may be lowered or optimised. Additionally, this includes establishing budgets. In addition to this, managerial accounting is an extremely important component in the process of making strategic decisions. Managerial accountants are able to give insights into the profitability and viability of various company strategies and investment possibilities by assessing both financial and non-financial information. This involves analysing the possible financial risks and rewards associated with various initiatives, examining the viability of proposed mergers and acquisitions, and identifying possibilities for business expansion and diversification.
References
Belukha, M. Т. (2004). Forensic accounting. Kyiv: Volia Publishing Company, 656.
Holov, S. F. (2014). Futurology of accounting. Bulletin of the National university «Lviv Polytechnic». Management and entrepreneurship
in Ukraine: stages of formation and development problems, 794, 153–157.
Sopko, V. V. (2006). Accounting in enterprise management. Kyiv: KNEU, 526.
Osmyatchenko, V. O., Oliynyk, V. S. (2017). Modeling the formation of reporting performance indicators for employees. Economic
Bulletin. Series: Finance, Accounting, Taxation, 1, 160–166.
Pushkar, M. S. (2017). Creation of scientific theories of accounting and control. Accounting, Taxation and Control: Theory and
Methodology. Ternopil, 50–54
Radionova, N. Y. (2016). Methods of forming a balanced indicator system as a tool of strategic managerial accounting. Strategic
vectors of socio-economic development at the micro and macro levels. Poltava, 175–178.
Skrypnyk, M. I. (2011). Organization of expenses accounting by expenses centers and responsibility centers. Accounting and Finance APK, 1, 46–49. Available at: http://magazine.faaf.org.ua/organizaciya-obliku-vitrat-u-rozrizi-centriv-vitrat-ta-centriv-
vidpovidalnosti.html
Benko, M. M.; Antoshkina, L. I. (Ed.) (2016). The current state and prospects of accounting development and economic analysis
of enterprises in Ukraine. Berdyansk: Publisher Tkachuk O. V., 240.
Ivakhnenkov, S., Heorhiadi, A. (2013). Ukrainian businesses’ characteristics and the use of information technology: introduction
to exploratory studies. Naukovi zapysky NaUKMA. Ekonomichni nauky, 146, 39–45.
Skrypnyk, M., Radionova, N., Vlasiuk, T., Bondarenko, S., Grygorevska, O. (2019). Accounting and Verification of Sustainable
Enterprise Development Reporting. IBIMA Business Review, 1–10. doi: http://doi.org/10.5171/2019.873407
Skrypnyk, M. I., Matiukha, M. M. (2015). The itological concept of management accounting and reporting. Current Issues in
Economics, 4, 230–238.
Downloads
Published
How to Cite
Issue
Section
License
This work is licensed under a Creative Commons Attribution 4.0 International License.
Re-users must give appropriate credit, provide a link to the license, and indicate if changes were made. You may do so in any reasonable manner, but not in any way that suggests the licensor endorses you or your use. This license allows for redistribution, commercial and non-commercial, as long as the original work is properly credited.
