The Decision Making Process Of Accounting Essays

1019 Words Aug 27th, 2016 5 Pages
When it comes to managerial accounting, managers need to be well versed and have the knowledge as well as the analytical skills it requires to make critical decisions. The process of accounting is in charge with identifying, measuring and communicating economic information in order to allow its users to make the correct decisions and judgments (Ioana-Diana, 2013). There are many risks involved in the decision making process, especially when it comes to strategic planning. These types of decisions can either increase the organizational goals or be ineffective and severely impact the organization 's operations along with resources, resulting in high operational costs and monetary loss. The BSE Veterinary Services laboratory is an example of a corporation requiring managerial accounting to come up with a solution on efficiently testing cattle for infections. Currently there are 12,000 tests performed per period, which will be increased to 18,000 tests per period. If the company takes on the excess testing, there will be additional factors that must be taken into consideration. This is where the company is going to have to collaborate with all agencies involved to come up with the best solution. Therefore, the decision making model that would best fit this scenario would be the collaborative model. There are many moving parts to consider in the decision-making process, which involves more than the organization 's interest alone. Other points of interest would include…

Related Documents