In the research conducted by (Ahrens & Chapman, 2006) it is reviewed that Managerial
accounting defines as the kind of accounting that delivers a fast information
to the managers and also the decision-makers in a company. Managerial accounting
influences the managers by providing the data such as daily budget or annual
report, so that the managers could take appropriate decisions that will able to
increase the effectiveness and efficiency of the daily business activities of
the company (Ahrens & Chapman, 2006).
According to the research
conducted by (Scapens, 2006), it is reviewed that managerial
accounting is the process of recognizing, determining, evaluating, presenting,
and communicating the information to the managers, in order to reach the main
goals of the company. How the managerial accountants could influence the
managers especially in the process of making decision? The managerial
accountants apply the information which associated with the products or service
costs that the company has purchased (Scapens, 2006). They will also
extensively use the financial budget as a quantitative appearance on how the
strategies of the company practiced within its daily business activities.
Moreover, the managerial accountants also use the reports of performance to
notify for any deviances of the exact outcomes from the financial budgets as
well (Scapens, 2006).
According to the research
conducted by Siti-Nabiha & Scapens, (2005)
it is reviewed that A study has suggested that a managerial accounting uses the
information about the daily business activities to create reports that provide
for current progress of the business performance within the company. Example
for the reports that made by the managerial accountants are such as the profit
margin, and the utilization of labor. These information will influence the
decision-makers to make proper daily decisions. In addition to this, these
reports definitely influence the on how the company will make any decisions for
its future development (Siti-Nabiha & Scapens, 2005). Furthermore, the
managerial accountants also influence the decision-makers through the reports
that they have made, in which the company could leverage these important
information to improve its decision-making throughout the time, in order to get
higher profitability along with the better competitive benefits as well (Siti-Nabiha
& Scapens, 2005).
According to the research
conducted by (Sandra C. Vera‐Muñoz, Shackell, &
Buehner, 2007)
it is reviewed that another study also mentioned that many small companies got
influenced by the managerial accounting throughout the data-driven that they
provided for the companies. The data that made by the managerial accountants is
quite useful for these companies to figure out on how to develop their small
companies into bigger ones. In fact, by concentrating on this data, the
managers I the small companies could make better decisions that aim for
constant development and improvement. Moreover, this data considered to be
useful since they are reasonable based on the intellectual analysis of the
company, so that all the decisions will be made reasonable as well (Sandra C.
Vera‐Muñoz, Shackell, & Buehner, 2007).
In the research conducted by (Moers, 2006), it is reviewed that
the information from managerial accounting also able to influence in making
decision of manufacture in the company. For instance, a small company’ owner
might be figuring out to make a decision in producing or buy a component that
required to manufacture of the main products of the company. The managerial
accountants will help the company in making decision on which one is more
profitable for the company by reviewing complete calculation of costs and also
giving the proper suggestion that will profit the company (Moers, 2006).
According to the research
conducted by (Yeshmin & Hossan, 2011) it is reviewed that the
overall decision making in the business is an inclusive process that includes
with recognizing the issues and criteria for decision, assigning weights to
criteria, moves to developing, selecting and analyzing an substitute that
resolve the issue, executing the substitute and ending with appraising of
the effectiveness of the decision (Yeshmin &
Hossan, 2011).
It is evaluated by that (Trkman, McCormack, Oliveira, & Ladeira, 2010), Manipulating
information to increase outcomes and processes is focus of SCM activities and
operative SC practices can rise the overall capacity of the information
processing (Trkman, McCormack, Oliveira,
& Ladeira, 2010).
It is evaluated by Honggowati, Rahmawati, Aryani, & Probohudono,
(2017) in company management, the managerial ownership is an active
owner who carries out the process of decision making. The greater managerial
ownership proportion will affect the administration to work harder to exemplify
the owner interests (Honggowati, Rahmawati, Aryani,
& Probohudono, 2017). With more of the policies applied by the
company, the inclination to reveal more data about the company to the public
also grow. Therefore, there is an optimistic association between managerial disclosure
and ownership (Honggowati, Rahmawati, Aryani, & Probohudono, 2017).
It is estimated by ASHFAQ, YOUNAS, USMAN, & HANIF, (2014)
that the cost profit analysis use is extensive by the industrialized companies.
Management accounting also offers the firm’s useful data to make decisions about
the payback period, cost profit and accounting return rate are used mostly. But
capital cost normally not used extensively (ASHFAQ, YOUNAS, USMAN, &
HANIF, 2014).
One of the major management accounting objectives is to offers decision making information
within the company. The companies may take short term decision or consistent
decisions making concerning the related management accounting tools information
such as profitability analysis of product, profitability analysis, break even
analysis, about control over stock and customers etc. (ASHFAQ,
YOUNAS, USMAN, & HANIF, 2014).
In the research conducted by Ahmad, (2014) it is analyzed about the financial
management systems scope including MAPs operating in SMEs firms. The greater
managerial ownership proportion will affect the administration to work harder
to exemplify the owner interests (Ahmad, 2014).
They initiate that systems of management accounting not likely to have the same
financial accounting level with the previous having a condensed acceptance.
They are also discover that the smaller businesses were more expected to be unhappy
with their systems of the management accounting (Ahmad, 2014).
References of Impact of Managerial Accounting on Decision Making in
Business
Ahmad,
K. (2014). The Adoption of Management Accounting Practices in Malaysian Small
and Medium-Sized Enterprises. Asian Social Science, 10(2).
Ahrens,
T., & Chapman, C. S. (2006). Doing qualitative field research in management
accounting: Positioning data to contribute to theory. Accounting,
organizations and society, 819-841.
ASHFAQ,
K., YOUNAS, S., USMAN, M., & HANIF, Z. (2014). Traditional Vs. Contemporary
Management Accounting Practices and its Role and Usage across Business Life
Cycle Stages: Evidence from Pakistani Financial Sector. International
Journal of Academic Research in Accounting, Finance and Management Sciences,
104–125.
Honggowati,
S., Rahmawati, R., Aryani, Y. A., & Probohudono, A. N. (2017). Corporate
Governance and Strategic Management Accounting Disclosure. Indonesian
Journal of Sustainability Accounting and Management, 23–30.
Moers,
F. (2006). Doing archival research in management accounting. Handbooks of
management accounting research, 399-413.
Sandra
C. Vera‐Muñoz, S. C., Shackell, M., & Buehner, M. (2007).
Accountants' usage of causal business models in the presence of benchmark data:
A note. Contemporary Accounting Research , 1015-1038.
Scapens,
R. W. (2006). Understanding management accounting practices: A personal
journey. The British Accounting Review.
Siti-Nabiha,
A. K., & Scapens, R. W. (2005). Stability and change: an institutionalist
study of management accounting change. Accounting, Auditing &
Accountability Journal , 44-73.
Trkman,
P., McCormack, K., Oliveira, M. P., & Ladeira, M. B. (2010). The impact of
business analytics on supply chain performance . Decision Support Systems.
Yeshmin,
F., & Hossan, M. A. (2011). Significance of Management Accounting
Techniques in Decision-making: An Empirical Study on Manufacturing
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