Cost Management Techniques For topic selected, present real world examples of th
ID: 2522245 • Letter: C
Question
Cost Management Techniques
For topic selected, present real world examples of the application of managerial accounting techniques within a business or organization. Examples may be gathered from your own professional experiences or from case studies obtained from credible sources (excluding textbook examples explored in previous weeks). Presentation of each example should include how a managerial accounting technique was applied in the business or organization’s decision-making model. Be sure to support your example with calculations when applicable.
Please do not plagiarize from cousrehero or any other site Report the references of any scholarly written paper or book .
Explanation / Answer
First it is important to understand what is Managerial Accounting Techniques
It is the process of identifying, analyzing, recording, and presenting financial information so internal management can use it for planning, decision making and control of a company.
Take a scenario for example were a firm is required to raise $500 million
Now the finance department will collate all the details required for the amount of money to be raised,
The source of funding
The rate of interest at which the amount should be raised or it has to be an equity capital funding,
In what tranches the amount will be received
What impact will it have on Financial statements in the coming years
How the amount will be repaid etc.
When all this is realized, identified, analysed and represented in the form of financial information to internal management who will take their decision based on it,
It becomes utmost important that accuracy is maintained over the data so that clear conclusions can be drawn to take appropriate decisions.