Using Accounting for Decision Making - Book Report/Review Example

Using Accounting for Decision Making: Budget for the Short Term. Your full s here Department Managing of organizations is complex and involves a myriad of elements that must be brought together ensure business success. The future is uncertain, the environment of business is ever changing as well as technology and thus managers are left with a huge task of directing organizations well. An important element of management involves making of business decisions that give the organizations future direction.

This brings together all business facets of the business in order to ensure everyone is well aware of the long term organizational goals. From the reading I learned that budgeting is a very important element of making decisions for business. It can be used to communicate the business plans and ensure discipline among managers in terms of focusing on set goals. They should bring others on board to ensure success of the plans. Budgets are also important in coordinating business elements, and bring about motivation.

I also learned that budgets are never based on realistic budgets that can be achieved thus setting tough targets for the business. I ask myself how these unrealistic targets can be arrived at and how management will measure success with targets which were never realistic in the first place. The chapter also gives me an insight into how demanding management can be in terms of bringing together business elements, growing people through work, creating responsibility centers and managing them at the same time while directing the future of the business.

Ultimately I learn that accounting through the making of financial statements and organizations is important in management decision making as this information is useful in setting performance goals for the business. In conclusion therefore management is one very demanding task that requires a lot of energy and wisdom. Decision making by management is important in informing the future of a business and thus managers must involve everyone. The accounting function of a business is key in the making of the decisions as there statements and budgets are heavily relied upon by managers while setting short term plans consistent with long term goals of the business.

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