Introduction to Managerial Accounting Managers call upon their internal accounting staff to pull together information and make appropriate recommendations. Global Trade and Transfer -- The management accountant frequently performs significant and complex analysis related to global business activities. This requires in-depth research into laws about tariffs, taxes, and shipping. In addition, global enterprises may transfer inventory and services between affiliated units in alternative countries. These transactions must be fairly and correctly measured to establish reasonable transfer prices (or potentially run afoul of tax and other rules of the various countries involved). Once again, the management accountant is called to the task. Branding/Pricing/Sensitivity/Competition – In positioning a company’s products and services, considerable thought must be given to branding and its impact on the business. To build a brand requires considerable investment with an uncertain payback. Frequently, the same product can be “positioned” as an elite brand via a large investment in up-front advertising, or as a basic consumer product that will depend upon low price to drive sales. What is the correct approach? Information is needed to make the decision, and management will likely enlist the internal accounting staff to prepare prospective information based upon alternative scenarios. Likewise, product pricing decisions must be balanced against costs and competitive market conditions. And, sensitivity analysis is needed to determine how sales and costs will respond to changes in market conditions. Visit for more information. Are you interested in a master study programme that features innovative methods and sustainable solutions to improve the quality of our living environment? Consider studying at Wageningen University today. There you can choose from a broad range of study packages offering various perspectives on the environment, such as sustainable tourism , socio-economic developments , the environment and innovative technologies . This multidisciplinary approach truly makes the master study programmes and your time at Wageningen University unique! Does your ambition incluDe having a positive impact on a healthy living environment? consiDer Wageningen university in the netherlanDs Please click the advert
Managerial and Cost Accounting 16 Introduction to Managerial Accounting As you can see, decisions about positioning a company’s products and services are quite complex. The prudent manager will need considerable data to make good decisions. Management accountants will be directly involved in providing such data. They will usually work side-by-side with management in helping them correctly interpret and utilize the information. It behooves a good manager to study the basic principles of managerial accounting in order to better understand how information can be effectively utilized in the decision process. With these sorts of topics in play, it is no wonder that the term “strategic finance” is increasingly used to characterize this profession.