Management Accounting:a Tool for Business Decision-making

Abstract

Management accounting has become a fundamental instrument for companies, because it provides the organization with relevant information for proper control and decision- making, given that business success is measured through an accurate management not only of material, economic-financial and human resources, but also by the impact they can have on the business environment. Business activities are currently characterized by their complexity. Each monetary operation in them carries a factor called uncertainty; An adequate management of this component constitutes what is known as "successful decision- making".

Traditional accounting systems do not consider internal accounting reports that allow us to measure, among other aspects, the company capacity to generate liquidity, solvency, level of indebtedness and profitability.

It is important not only to consider the view that accounting generates financial statements, but it is a tool for measuring management that is reflected in the decision- making that guarantees the presence of the organization as an ongoing entity.

In the context of this analysis, the different decisions that emerge from the modern conception of accounting, such as management accounting, will be addressed in order to achieve an improvement in products, in production processes, in purchasing decisions, in prices, in clients and, above all, in the total quality. In the present investigation we will analyze the context of the first administrative function: planning.