Effective Management Accounting

Gary Cokins, MBA, CPIM, Analytics-Based Performance Management, LLC

Critics have claimed that traditional managerial accounting is at best useless and at worst dysfunctional and misleading. Most line managers do not trust their management accounting data. 

21st Century management accounting develops cost/unit metrics that are useful for budgeting, cost analysis and control. Current methods bring truly accurate fact-based costing visibility, tracing costs and identifying cause-and-effect relationships rather than broadly allocating overhead. This information provides the ability to reveal the true profit margins for products as well as for specific sales channels and customers. 

Removing the barriers caused by your current management accounting techniques can provide huge rewards.