Effective Management Accounting

Management accounting is the provision of financial and non-financial decision-making information to managers. In management accounting or managerial accounting, managers use the provisions of accounting information to inform themselves better before they decide matters within their organizations, which allows them to manage better and perform control functions.Critics have claimed that traditional managerial accounting is at best useless and at worst dysfunctional and misleading. Most line managers do not trust their management accounting data. Enter 21st Century management accounting develops cost/unit metrics. They are useful for budgeting, cost analysis, and control.

Activity-based costing (ABC) is really useful because :

• It brings truly accurate fact-based costs with visibility. 
• It traces costs by identifying cause-and-effect relationship to just broadly allocating overheads.
• It this enables to see true profit margin for products and service-lines and for specific sales channels and customers.
• It reduces costs.
• It improves productivity by reporting unit costs that can be bench-marked against your competition.
• It provides a way to monitor cost trends.
• It removed barriers caused by current management accounting techniques
• It can provide huge rewards.

An internationally recognized expert, speaker, and author in enterprise and corporate performance management improvement methods and business analytics gives an in-depth understanding and guidance of what this method is and how should you implement it to reap real, long-term benefits for your business.