What are the primary responsibilities of a management accountant?
Managerial accounting is one of the branches of accounting. It is concerned with gathering, analyzing, interpreting, and summarizing accounting information to come up with managerial reports such as sales and production reports. The reports are used by internal users such as managers to make decisions concerning business operations.
Answer and Explanation:
The primary roles of management accountants include:
- Providing managers with accounting information. Management accountants are responsible for collecting, analyzing, and interpreting accounting information for business managers. Management accountants present this information in the form of reports such as production and sales reports. The managers use these reports to make well-informed business decisions about the operations of a company. The accounting information provided by the accountants help managers to plan and effectively control the operations of a company, it enables managers to perform a cost-benefit analysis of the operations of a company. The reports also assist the managers to predict the future performance of a company.
- Performance management. Management accountant works together with managers to develop a framework to manage the performance of an organization based on available accounting data. Through the accounting framework, the process of decision- making that relies on accounting information is enhanced.
- Risks management. The management accountant has the role of contributing to the financial risk management of an organization. The accountant is involved in identifying, analyzing and reporting accounting and financial risk that may make an organization not to achieve its goals. Such risks include cases of fraud and others.
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from Business Management: Help & ReviewChapter 9 / Lesson 1