Managerial Accounting From the Masters of Management
- Sometimes failure
The ROI or return on investment is the underlining equation for our management approach. Dupont was the first company to implement this managerial accounting approach and create what we know ROI today.
To understand managerial accounting, you need first to understand your management accounting system and how this system is differentiated in each company. Questions to ask yourself what should be produced? What should be solved? What are we delivering?
Let’s breakdown how we, as managers make decisions:
Planning: This is for the future, predicting that past results will garner similar or better results in the present and the future. Again, this is YOUR LAST step, not your first; this is not a wish; this is NOT a dream; this is cold hard facts that will hurt your feelings.
Controlling: This is the present, controlling involves all the day-to-day tasks you oversee as a manager.
Evaluating: Past and learning from it and applying it to the planning step.