Application of Management Accounting Techniques to Improve Decision Making of Senior Management

Purpose - The increasing business scale of organizations in the globalized business environment leads to complexity in managing the internal working. Hence, the main aim of the research report is to present how decision making of senior management in different organizations can be improved with the application of several techniques of management accounting. Methodology - The researcher has taken the secondary sources for data collection. The qualitative research focuses on the gathering of useful information from the existing published books, journals and articles in order to present the true and validated results of the research. The researcher has ensured that research methodology provides the accurate and reliable outcome of the study and thus. Results - The intense competition in the global market compels every organization to improve its performance outcome. Hence, performance in the external environment can be improved only when the organization is internally strong and competent with its business operations. The findings present the approach of improving the internal efficiency and operational activities of the business through management accounting techniques. The managers have to understand how they can utilize several techniques of managerial accounting in different situational contexts, and thus, its understanding is presented in the report. Conclusion - The concept of managerial accounting is of great importance to a firm for its sustenance and long term growth in the national as well as overseas market. Organizations that effectively utilize the marginal costing techniques, ratio analysis, standard costing, budgeting, etc. can better improve their future planning and strategic business activities. The competitive strength of the firm is dependent on the level of understanding the usage of several techniques of managerial accounting in different areas of planning, forecasting, project analysis, etc