Decision Making with Managerial Accounting Managerial accounting is essential for decision making. Making the best choice depends on the manager's goals, the anticipated results from each alternative, and the information available when the decision is made (Schneider, 2012). The different techniques associated with managerial accounting are very helpful in the decisions that need to be made. In order to truly understand decision making with managerial accounting one must first discern exactly what managerial accounting means and some of the techniques associated with it. The definition of managerial accounting will be discussed along with the techniques of cost management techniques, budgeting, and quality control.
Definition of …show more content…

Managerial Accounting Techniques Presented with Real World Examples There are many other techniques involved in managerial accounting. Just like how the techniques presented above can be applied to business, there are also other techniques that can also be applied to business. In order to understand exactly how this is possible I will be discussing three more managerial topics and illustrating through real world examples how these techniques are applicable to business. The real world examples that I will be using will be gathered from my own personal work experience in a hospital as a registered nurse. The three topics include cost management techniques, budgeting, and quality control.
First, cost management techniques are essential for hospitals because it can help them improve their financial and operational performance, and address management issue in a better way (Kis & Bodenger, 1989). A couple of these techniques include competitive pricing and cost control. At the hospital that I am currently employed all of these techniques of cost management are currently being enforced. Competitive pricing is being enforced through a new transport program that was just implemented. This program requires that our pediatric unit has a designated transport nurse on every shift that rides with the emergency medicine techs in the ambulance to bring newly admitted kids from other hospitals to our hospital. In order to compete with other major children