Managerial Accounting Week 2-3 Assignment
How can managers use accounting information to make better decisions ?”
Discuss the scope of the resource.
Discuss the purpose and philosophical approach or methodology.
Discuss the underlying assumptions.
Relate the resource to the body of resources you have consulted in this course.
Discuss any evident limitations and opportunities for further inquiry.
Your annotated bibliography is due Day 7 of Week 3.
Topic: How managers can use accounting information in making better decisions
Briciu, S., Scorţe, C., & Meşter, I. (2013). The impact of accounting information on
managerial decisions – Empirical study conducted in the hospitality industry entities in
Romania. Theoretical & Applied Economics, 20(9), 27-38.
MANAGERIAL ACCOUNTING WEEK 2-3 ASSIGNMENT 2
Briciu, Scorte and Mester (2013) conducted an empirical research which is based upon a
survey carried out from November 2012 to January 2013. They administered online
questionnaires to managers of 91 organizations in the tourism and hospitality sector. The
findings revealed that the managers surveyed can use accounting information to determine
the company’s funding needs. The managers analyze revenue to determine the amount of
funds that would be available to finance future projects (Briciu, Scorte & Mester, 2013). The
study’s limitation is that the questionnaire contained so many questions totalling 38 questions
which called for maximum concentration of the study subjects and some managers lost
patience while completing the questionnaire.
Dumitrana, M., Radu, G., Dumitru., & Jinga, G. (2010). The use of the accounting
information in decision making in the hospitality business. International Journal of
Contemporary Hospitality Management, 17(1): 39-50
Accounting information, managerial accounting information in particular, has been utilized
and analyzed extensively in the context of manufacturing firms. Few studies have been done
on the utilization of managerial accounting information in aiding the process of decision
making in the hospitality sector. Dumitrana et al. (2010) sought to fill this gap in existing
knowledge. They discovered that accounting information could be utilized by managers in
budgeting. Managers utilize the continuous flow of accounting information related to
overhead, investments, purchases and income to create budget for the following year. The
weakness of their study is that the research was conducted in only 2 hotel organizations hence
the findings cannot be generalized in other organizations and organizational settings.
Florin, B. (2014). Development of decision making by managers with financial and
accounting information. Annals Of The University Of Oradea, Economic Science Series,
23(1), 837-844.
MANAGERIAL ACCOUNTING WEEK 2-3 ASSIGNMENT 3
As per the author of this article, accounting information is of great importance in improving
the effectiveness of the fiscal function and assists managers in making managerial decisions.
As used in manufacturing, accounting information is employed by managers in deciding
whether to purchase or to make – in buy or make analysis – a particular component which the
company requires in order to make its primary product (Florin, 2014).
Gheorghe, D. (2012). The accounting information quality concept. Economics,
Management & Financial Markets, 7(4), 326-336.
Good accounting information is able to respond to the requirements of an organization and
help in managerial decision making. Accounting information in the form of fiscal reports can
be used by managers to guide the future of an organization. Balanced scorecards, fiscal
statement projections, and budgeting are some of the ways in which managerial accounting
information is employed in providing information to assist managers in guiding the future of
the organization. When managers focus on this data, they are able to make decisions which
aim for constant improvement and are justified basing upon intelligent analysis of the
company’s data (Gheorghe, 2012).
Lengauer, V., Mayr, A., & Parasote, S. (2011). The impact of accounting information on
management’s decision-making process. The Accounting Review, 12(67): 511-525
In their study, Lengauer, Mayr and Parasote (2011) examined the impact that accounting
information has on the decision-making process of a company’s management. The managers
of a particular company known as Wexiodisk AB, a manufacturer of dishwashing machines,
were interviewed. Their findings demonstrated that managers at the company utilize
MANAGERIAL ACCOUNTING WEEK 2-3 ASSIGNMENT 4
accounting information for budgeting purposes and to determine the funding needs of the
company’s upcoming ventures.
Miculescu, C., & Miculescu, M. N. (2012). Quality of accounting information to
optimize the decisional process. Annals Of The University Of Oradea, Economic Science
Series, 21(2), 694-699.
Accounting information is valuable when used in a decisional process. In their study,
Miculescu and Miculescu (2012) found that managers can utilize accounting information in
determining what needs to be sold and how it should be sold – using the process of relevant
cost analysis – and in determining whether to stop operations or increase product lines.
Moreover, managers utilize accounting information to decide which consumers are less or
more profitable so that marketing efforts could be focused on customers that are most
profitable (Miculescu & Miculescu, 2012).
Scorţe, C., & Farcaş, M. (2013). The impact of accounting information on managerial
decisions – Theoretical approaches. Annals Of The University Of Oradea, Economic
Science Series, 22(2), 692-702.
In this peer-reviewed journal article, Scorte and Farcas (2013) conducted a literature review
on accounting information as it is applied within the hospitality sector. They also carried out
literature review on the topic of management accounting in this particular industry. Scorte
and Farcas (2013) learned that accounting provides the information which is essential for
monitoring, for establishing the extent of liability and the result produced at different places
of work, which facilitates the detection of internal reserves, of uneconomic and unnecessary
spending and of losses. This way, accounting information contributes to the fulfilment of
strategic objectives. Managers in the tourism and hospitality industry also use accounting
MANAGERIAL ACCOUNTING WEEK 2-3 ASSIGNMENT 5
information in making appropriate financial and economic decisions. Furthermore,
accounting information acts as an advisor which aids managers in determining the conditions
wherein the company is operating at both macro-economic and micro-economic levels
(Carmen & Mariana, 2013).
Silviu-Virgil, C. (2014). The importance of the accounting information for the decisional
process. Annals Of The University Of Oradea, Economic Science Series, 23(1), 593-603.
In his qualitative research study, Silviu-Virgil (2014) reviews a number of books and articles
which have looked into the topic of accounting information from a managerial decision
viewpoint. The author found that accounting information is in actual fact the raw material for
the process of managerial decision making. Managers can utilize accounting information to
help attain organizational goals. Moreover, accounting information could be employed to aid
in budgeting and in analyzing whether to purchase or make a component in-house.
Socea, A. D. (2012). Managerial decision-making and financial accounting information.
ScienceDirect, Elsevier. Procedia – Social and Behavioural Sciences, 58(12): 47-55
In this journal article, Socea (2012) looks into the role played by fiscal accounting
information in managerial decision-making. The author states that for fiscal accounting
information to be of use for decision making, it should be comparable, dependable, relevant
and intangible. The results of his study indicate that managers utilize financial accounting
information in knowing what took place previously and to know what is the organization’s
present situation. Furthermore, managers utilize fiscal accounting information in making
visible the events which are not noticeable by everyday activities. It also provides managers
with a quantitative overview of the organization over and above helping managers in
preparing for future decisions and activities (Socea, 2012).
MANAGERIAL ACCOUNTING WEEK 2-3 ASSIGNMENT 6
Tunji, S. T. (2012). Accounting information as an aid to management decision making.
International Journal of Management and Social Sciences Research, 1(3):29-34
In his study, Tunji (2012) analyzes how accounting information helps in management
decision making. Using survey research design, the author enlisted 55 participants and data
was gathered from them with the use of a questionnaire. A number of hypotheses were
developed. The findings indicated that managers utilize both non-fiscal and fiscal accounting
information in aiding business decision-making. In particular, they utilize accounting
information to monitor the organization’s performance, and to monitor the process of
decision making. Since accounting information provides more timely information, managers
also use it in improving the efficiency of operations.
References
Briciu, S., Scorţe, C., & Meşter, I. (2013). The impact of accounting information on
managerial decisions – Empirical study conducted in the hospitality industry entities
in Romania. Theoretical & Applied Economics, 20(9), 27-38.
MANAGERIAL ACCOUNTING WEEK 2-3 ASSIGNMENT 7
Dumitrana, M., Radu, G., Dumitru., & Jinga, G. (2010). The use of the accounting
information in decision making in the hospitality business. International Journal of
Contemporary Hospitality Management, 17(1): 39-50
Gheorghe, D. (2012). The accounting information quality concept. Economics, Management
& Financial Markets, 7(4), 326-336.
Florin, B. (2014). Development of decision making by managers with financial and
accounting information. Annals Of The University Of Oradea, Economic Science
Series, 23(1), 837-844.
Lengauer, V., Mayr, A., & Parasote, S. (2011). The impact of accounting information on
management’s decision-making process. The Accounting Review, 12(67): 511-525
Miculescu, C., & Miculescu, M. N. (2012). Quality of accounting information to optimize the
decisional process. Annals Of The University Of Oradea, Economic Science Series,
21(2), 694-699.
Scorţe, C., & Farcaş, M. (2013). The impact of accounting information on managerial
decisions – Theoretical approaches. Annals Of The University Of Oradea, Economic
Science Series, 22(2), 692-702.
Silviu-Virgil, C. (2014). The importance of the accounting information for the decisional
process. Annals Of The University Of Oradea, Economic Science Series, 23(1), 593-
603.
Socea, A. D. (2012). Managerial decision-making and financial accounting information.
ScienceDirect, Elsevier. Procedia – Social and Behavioural Sciences, 58(12): 47-55
MANAGERIAL ACCOUNTING WEEK 2-3 ASSIGNMENT 8
Tunji, S. T. (2012). Accounting information as an aid to management decision making.
International Journal of Management and Social Sciences Research, 1(3):29-34
