I just need a 50-80 word response for this One of the things a managerial accoun
ID: 350507 • Letter: I
Question
I just need a 50-80 word response for this
One of the things a managerial accountant can help with the decisions for is whether or not to continue to offer a product or service. The accountant can bring up reports that show the cost of goods and labor. Then he or she can also bring up historical sales of the item or service and tell if the product is profitable or a loss. I know that at my work we get lists form corporate of things in the regular warehouse that need to go to our discount website. We also get lists of things to go from the discount website to the outlet stores. No one says it outright but this likely comes from reports from managerial accountants. Another thing that managerial accountants might look at is shipping costs. We now have a report that shows how many bulbs are shipped separately from the light fixtures people order. That increases shipping costs and is not good.
Explanation / Answer
Managerial accountant can certainly help with the decision making regarding continuing with the offering in the market or whether to cease the same, by facilitating the financial feasibility report of the same. However, it is to be noted that it simply forms just part of the entire decision making process because, apart from the financial aspect, a lot goes into making the offering a success, including its marketing policy in place, the production quality, the Human resource, etc. Further, the shipping costs may also not entirely be in control of the management accountants. For eg., in the shipment like bulbs, probably, it is owing to the nature of the fragility involved in the product that it is chosen to be shipped separately instead of clubbing the bulbs and its fixtures together. Hence, it is rather a very general statement to make regarding the functions of a management accountant whereas the issues in the Company are rather more serious than what just meet the eyes.