Interview About Managerial Accounting Techniques - Essay Example

He is very conversant with processes and strategies developed to reduce costs as well as proper financial management. Kim seems to be in constant communication with the financial manager to ensure that his departmental financial needs are met.

I took the opportunity to go to Kim’s company since I did not want to interview him at home. I met his secretary who allowed me to go and see him. I wanted our conversation to be as formal as possible since I had interacted with him on other platforms. After some orientation on the operations of the company, I engaged Kim with questions. Firstly, I focused on understanding the costing systems in the company. Kim was aware that there was a cost accounting system that the company used though he did not know precisely what it was called. However, he was quite clear that the overall cost of production required to be considered in resource management. Since the company does not have many operations, Kim said that they have simplified the financial control system to ensure that operations are run efficiently. At Km’s company, the review of the costing systems is usually done after every year citing issues of inflation and changing economic patterns.

Being a senior manager, Kim has a role in financial decision-making in the organization. The senior management usually meets weekly to deliberate on the company operations, trends, and acquisitions among other issues. The company uses the break-even analysis in making its financial decisions. This ensures that the company is capable of getting to know its position relative to its profitability. Kim plays a major role in decision-making. As a senior manager, he has a vote in facilitating a consensus on the way the resources in the company are to be spent. In addition, he has the role of ensuring that his department ‘is allocated the resources that are required. In management, he has the role to defend his projected expenditures as well as giving financial reports on the operations within the department.

Kim tells me that the organization is very keen on its budgets. The budgets are usually developed at the beginning of every financial year. They are then vetted by the junior management and then presented to the senior management for further scrutiny. The review of the budgets is done whenever there are major changes in the company. These reviews are mainly for additional costs. This is because what is not spent is taken back to the treasury. Kim says that they have adopted an accounting system that ensures efficiency in payment for utilities as well as ensuring that the company funds are not delegated to any individual. Deloitte audits the company.