The research paper highlights the benefits of managerial accounting enjoyed by the managers. It also underlines the importance of the experimental researches that are conducted by different researchers to identify the importance of managerial accounting in the world of management. It also provides information regarding the structure of the entire managerial accounting system which makes it possible to recognize the purpose of the research area. The paper also elaborates on the facts owing to which the managers, accountants and auditors find managerial accounting to be useful while performing their roles in the management world. So, the structure formed by the managerial accounting is used to integrate, organize and evaluate the existing managerial accounting researches. Thus, a new avenue for the future experiments in managerial accounting research is proposed through the paper.
The paper seeks to elaborate three objectives which will serve as the primary interests of the research. The first objective is to establish the role of research in evaluating the area of managerial accounting. The second objective is to highlight the evaluation and synthesis of the extent of managerial accounting. The final objective of the paper is to discuss the future of managerial accounting which provides with the area of improvement in the particular area.
Managerial accounting, also known as the management accounting, elaborates the use and provisions of accounting information that are required by the managers, accountants and auditors in an organization. It helps them to take necessary decisions regarding any issue arising in the organization. It also assists them to get acquainted with the management control functions which prevent them from taking any wrong decision which may harm the operations of the company. It chooses a forward-looking approach which predicts the future from the past performance of the company. It is not based on the historical models that obstruct the management decisions when implemented. It is solely designed to help the management to take the necessary decisions and is not disclosed to the shareholders or the creditors. Naturally, it is highly confidential.
Managerial accounting thus helps an individual in an organization or the organization as whole to take right decisions in the areas where concern is needed. It is important to study the roles of managerial accounting which will affect the behavior of the individuals who build the organization. The organizations repeatedly make judgments and decisions regarding the amount and kind of information which are supplied to employees and based on the given information, the employees proceed to judge and decide (Coombs, Hobbs and Jenkins 4).