Managerial Accounting for Business Decision-Making

Article Summary

The use of managerial accounting opens vast opportunities to organizations regarding their decision-making, which includes investment options, and management of financial assets as a whole. In their article, Butler and Ghosh study the factors that define the efficacy of managerial accounting on the business performance of an organization depending on the personal characteristics of managers. The authors posit that the scope of one’s decision-making and, on a larger scale, one’s thinking ability, determines the efficacy of a managerial accounting strategy used within an organization.

We will write a
custom essay
specifically for you

for only $16.05 $11/page
308 certified writers online
Learn More

The authors explain that the comprehensive thinking ability typically serves as the main factor in shaping managers’ decision-making and affecting their judgment. Therefore, Butler and Ghosh prove that the integration of strategic management affects an organization’s financial performance directly as long as the goals and values required for productive decision-making are set appropriately and align with the organizational standards. The systematic differences in decisions made by financial managers when deploying the managerial accounting framework suggest that the integration of managerial accounting opens more possibilities for a multilateral approach toward decision-making, which is critical for the management of organizational goals and building the competitive advantage of a company. Overall, the article proves that the application of managerial accounting allows viewing the decisions that branch out into different areas.

Article Discussion

The introduction of managerial accounting into the organizational context leads to an immediate advantage of enhancing the diversity of opinions, yet it also entails highly probable misconceptions and arguments about the proposed solutions due to the differences in participants’ perspectives. To address the described issue that Butler and Ghosh outline in their article, one might find the reinforcement of the corporate values and vision as a possible solution. Thus, the article prompts an integration of interdisciplinary collaboration into decision-making.

Reference

Butler, S. A., & Ghosh, D. (2015). Individual differences in managerial accounting judgments and decision making. The British Accounting Review, 47(1), 33–45. doi:10.1016/j.bar.2014.09.002

Print Сite this

Cite this paper

Select style

Reference

StudyCorgi. (2021, August 26). Managerial Accounting for Business Decision-Making. Retrieved from https://studycorgi.com/managerial-accounting-for-business-decision-making/

Work Cited

"Managerial Accounting for Business Decision-Making." StudyCorgi, 26 Aug. 2021, studycorgi.com/managerial-accounting-for-business-decision-making/.

1. StudyCorgi. "Managerial Accounting for Business Decision-Making." August 26, 2021. https://studycorgi.com/managerial-accounting-for-business-decision-making/.


Bibliography


StudyCorgi. "Managerial Accounting for Business Decision-Making." August 26, 2021. https://studycorgi.com/managerial-accounting-for-business-decision-making/.

References

StudyCorgi. 2021. "Managerial Accounting for Business Decision-Making." August 26, 2021. https://studycorgi.com/managerial-accounting-for-business-decision-making/.

References

StudyCorgi. (2021) 'Managerial Accounting for Business Decision-Making'. 26 August.

This paper was written and submitted to our database by a student to assist your with your own studies. You are free to use it to write your own assignment, however you must reference it properly.

If you are the original creator of this paper and no longer wish to have it published on StudyCorgi, request the removal.