Managerial Accounting – A Tool for Measuring and Piloting the Overall Performance
Using the GCU Library, locate a journal article about how managerial accounting helps businesses make decisions. In the subject line of your post, include the name of the article you read. Then, in your initial post, provide a link to the article and a summary followed by your reaction to the article. The summary should be approximately 250 words and the reaction should be approximately 150 words. The summary should describe the major points of the article, while the reaction should demonstrate your interpretation of the article and how you can apply that knowledge. Do not choose an article that one of your classmates has already posted. To participate in follow-up discussion, choose one of the articles that a classmate has posted and provide your own reaction to it. Note: It may be challenging to find a relevant article if you do not use the library.
Please include proper citations in your discussion post. Points will be deducted if proper citations are not used. I have attached the Journal and I only need 400 words.
Managerial Accounting
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Managerial Accounting
Article Title: “Managerial Accounting – A Tool for Measuring and Piloting the Overall Performance.”
Date of Publication: 2019
Authors: Hint (Stefan) Mihaela, Tonea Loana, and Hada Izabela Diana
Link: https://anale.steconomiceuoradea.ro/volume/2019/n2/015.pdf
Summary
The article discusses the significance of managerial accounting in piloting and measuring performance to facilitate an economic entity’s sustainable development (Mihaela, Loana, & Diana, 2019). For an economic entity, successful market preservation is only achieved through effective management. In that light, managerial accounting significantly contributes to the manner through which performance is measured within an economic entity. Performance management of an economic entity ought to have a strategic approach that enhances performance analysis within an integrated level. The authors argue that an economic entity’s efficiency depends on the management quality to apply and comprehend modern management methods, techniques, and principles.
Mihaela et al. (2019) assert that managing an entity entails knowing the current task and intervening with operation decisions and prefiguring the future and elaborating forecasts that outline the path of development (Mihaela, Loana, & Diana, 2019). Economic entities are concerned with meeting the needs of their customers and increasing their productivity. Traditional cost management emphasizes the internal environment. Managerial accounting makes it possible to obtain relevant information about the internal and external environment such that it becomes easy to monitor an economic entity and predict the most appropriate business strategy.