Processes of managerial accounting have been used for the evaluation of a company’s objective for the flourishment of a business further. This report study highlights the importance of managerial accounting in decision making and implementation of strategic approach for development of the business in the long run. It has been demonstrated that Australian supermarket such as Woolworths Company has been able to generate significant revenue in the last 5 financial years resulted out of their effective business-related decisions. The innovative approaches have influenced a greater number of loyal customers and sales have enhanced. Moreover, it has been evaluated that this specified organisation has been doing their business using the “cost information system” for obtaining information-based decisions required for development of the business. On the other hand, as based on the chosen case study, a manufacturing industry within UK has also highlighted the importance of managerial decisions and role of “CIS”.
The process of identification, interpretation, measuring, determination, and striking communication with management departments within an organisation on financial information is referred to as managerial accounting. This process is thus made applicable by enterprises for focussing on gaining profit maximization and reducing risks of incurring losses.
Therefore, it can be highlighted that the management of a company is provided with immense scopes on apprehending important decisions and an overall determination of the business can be examined for the development of a business. Major objectives of managerial accounting imply evaluation, crunching numbers, and managing investments of the business. In addition, it can be also managed with the drafting of budget, planning of risks, and decision making and implementation of the business-related strategy.
This report has been presented in two parts where the first part highlighted the collection of primary data for evaluation of a literature review. Information deciphered from conducting an interview has been analysed for determination of the purpose of cost information for planning and decision making are highlighted here. At the same point in time, the contribution of cost information system in succeeding a business has been stated within this study. Management Accounting Research” has been selected for this task. According to this peer-reviewed journal, the importance of cost information has been highlighted.
|Date of interview||13/5/2021|
|Name of the interviewed person||Brad Banducci|
|Name and location of the business||Woolworths Supermarket, Bella Vista NSW, Australia|
|Type of business||Retail|
Table 1: Interview Summary
Woolworths Company is renowned for selling products such as groceries to beauty products and online services are existing within this company (Woolworths Group.com.au, 2021). The management department has been successfully providing their customers with the best of products and services that have amounted their number of customers to “29 million” and this specified company has been successfully operating “3000 stores” and looks forward to opening up more stores depending on the demands (Woolworths Group.com.au, 2021). The primary objective of this business implies serving their customers with the best of their services and also making sustainable development.
Based on the above discussion, it can be highlighted that Woolworths Company has been doing their business successfully by generating a consistent significant rising within their revenue generation within the last 5 financial years. It has been demonstrated that this organisation, has been effectively implementing its managerial accounting, and hence, the application of CIS has been made applicable in terms of the development of innovative strategies such as “Artificial Intelligence” for simplification of services and influence loyalty of customers.
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