The Changing Role of Managerial Accounting in

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Keywords: information, decision, managerial accounting, cost ..... [13] [Horngren, C., Dtar., S.M., Foster, G., (2006), Contabilitatea costurilor, o abordare ...
Economy Transdisciplinarity Cognition www.ugb.ro/etc

Vol. 15, Issue 2/2011

45-55

The Changing Role of Managerial Accounting in Decision Making Process Research on Managing Costs Gabriela FOTACHE, Marian FOTACHE, Radu Cristian BUCŞĂ, Lucian OCNEANU George Bacovia University in Bacau, ROMANIA [email protected] [email protected] [email protected] [email protected] Abstract: The participation in decision-making information system of managerial accounting information is amplified today by emphasizing their role in making the decision on. They are not only means of enhancement and optimization of production processes and those in general, but actually create a new context and open up great prospects in stimulating economic development. Effective functioning of an entity in a competitive environment, whose dominant economic one is the limited resources, requires effective management of costs incurred on its outcomes. To achieve economic circuit: Supply - Production - Storage - Selling a range of expenditure compete through cost elements shall be made in selling prices of products on the market. Thus, it appears necessary to identify possible uses of information provided by the system of costs in decision making. This paper aims at identifying the role of managerial accounting in the economic entity’s information system and explains its objectives in terms of decision making. Keywords: information, decision, managerial accounting, cost

INTRODUCTION This paper is the result of a documentation and scientific research on the role of managerial accounting and possibilities to improve its organization in order to meet the information requirements necessary for decision making process. It circumscribes to the field of research oriented on informational potential of managerial accounting and aims in time and space analysis of theories on the importance of management accounting for decision making. The research work was used basic research. From an epistemological point of view, this approach falls into a positive-type research. The research methodology was used in testing hypotheses and comparative analysis. Information gathered through documentary research are analyzed both by description, by formulating concepts and by issuing opinions, and by building empirical relationships based on identification of variables that influence decision making process and the implications of these variables change on the content, form and format of information provided by managerial accounting for the decision making process. The research aimed at presenting a synthesis of the existing literature in this field. This paper focuses on the multidisciplinary documentary on informational potential of managerial accounting for decision-making following two dimensions: past and present. After delimitation of the current state of knowledge we have formulated and tested the following hypotheses of the research H1. Traditional methods of organizing the managerial accounting information do not fully satisfy the requirements of decision-making.

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H2. It requires a reconsideration of the informational potential of managerial accounting so that it becomes an important source of information for decision making process in the current context. After testing, both hypotheses were confirmed. In general, in decision making process, economic information is manifested both in content, presentation and efficiency and the ability to be comprehensive, complete and objective, provided regular, accessible and low costing through the process of obtaining, recording and transmission. For the information provided by the cost of production it is the required that they be in a form that allows the adoption of decisions, fast and accurate, to be presented to decision makers within the shortest possible time, to be accurate, have real economic significance and be relevant. The relevant character of the cost information allows the knowledge of those sides of the business that can influence the structure and evolution of costs and imposing, with the necessity to adopt decisions. In this way each decision-maker receives significant information for substantiating decisions that may be adopted in the jurisdiction and responsibility that he has. [1]. Determination of the entire production cost and cost per each product, makes economic entity's management performance, both on the whole and for each product, each department, helping to increase the responsibility of each place that generates costs. Therefore, it requires a redesign of all policies of production, sales staff so as to obtain an increased efficiency of production factors use. In this context, management accounting organizing in the economic entities becomes a key factor in their success [2]. Wide awareness of the value of information and the transition from working-based theory of value to knowledge-based theory of value placed the economic entities in front of new challenge - overload data from internal and external environment [3]. It involves managing the multitude of data that assault organization in order to obtain positive effects, according to the permanent opening to the environment. This phenomenon is generated, on one hand, by the growing need for information at different levels of management, and on the other hand, by the huge amount of information that flows continuously throughout the organization. Although modern management is building a knowledge base of its own, this does not exhaust the informational universe of the organization [4]. The quality of management is measured, among other things, by its ability to "read" information gathered by the organization, or important to it, collected on unorganized way, or structured for other purposes. On the other hand, informational capacity of the organization must be a permanent objective of the decision-makers and the core of information that support them. This paper presents an approach to managerial accounting as part of decision-making process, showing the place of managerial accounting in the global system of economic entities, the managerial accounting objectives and presents the main aspects that define the role of managerial accounting in decision making process. Also in this context the research goes on indicating a possible use in decision-making process of the information provided by the costs system. 1. MANAGERIAL ACCOUNTING – PART OF DECISION INFORMATION SYSTEM For a long time, the main problem of an organization was to produce and, in this context, technical orientation of the leadership was predominant, the manager had to be familiar with their products and how to obtain them. Along with increased competition, openness to external economic environment, substantial market intervention takes a privileged position compared to other company functions. Diversification of companies, formation of enterprise groups and multiplying financial operations has strengthened the position of financial and accounting function. Although the evolution of the relative power of different functions determines the contents of organization management, however the leadership appears as a specific action, applicable to all levels and in all functions of the firm. 46

The essence of complex duties of managers is to develop coherent decisions constantly having regard to the completing, correction or reorganization of activity at different levels based on reasonable interpretation of the information that is collected and processed simultaneously in order to permanently check the validity of solutions previously established [5, p.65]. The literature specifies that there are two traditionally accepted primary and differentiated management roles: the first is executive management and the second is functional/department (middle) management. Imler points out that executive management itself has two functions: “The first is to establish the priorities for the entire organization using a risk based approach…Second, executive management must allocate the resources necessary to accomplish all required activities…Management must receive adequate and appropriate data so priorities and resource allocation can be effectively monitored and corrected when necessary [6, p.58]. Managerial accounting is designed o bring in relief elements of cost and performance being adapted to provide information on different levels of management. Completed the development and monitoring budgets, managerial accounting content is emerging. "The organization of management accounting is up to each business, depending on the specific activity, ie objects, features and organization of production technology, production type, size and organizational structure, nature of the production process and its degree of mechanization and automation etc.. and the information needs of decision makers in this regard having an amplitude greater than the financial accounts (general) which is strictly regulated of legally (normative)."[7, p.11] The role of managerial accounting information system of the economic entity can reveal by studying its global system (see Fig. no.1.1.). On the one hand, managerial accounting provides information for decision-makers directly or through dashboards and on this basis, managers make decisions that will change, favourable or not, the results of subsequent periods. Moreover, these results are measured through management accounting and then reported and analyzed to make decisions. Along with managerial accounting information, in decisionmaking participate in decision-making information provided by other functions or services and external information (e.g. price developments, changes in monetary parity, etc.) retrieved or not in the scoreboard. Also, decisions must be developed within the strategic guidelines of the entity and to take into account other parameters such as tax, financial or social opportunities. The phase of information retrieval and extracting them from existing data table is very important because the results and, consequently, further decisions will depend on the quality of information retrieved. Information processing refers to both modes of processing organization and the right choice of work tools. According to specific types of economic entity’s costs must be selected and must be determined the accounting tools to perform these operations. All the management accounting information will feed the entity’s scoreboard or the sectoral dashboards. Without the analysis and using information phase the analytical accounting becomes unnecessary. The uses of managerial accounting in the management distinguish its two essential characteristics: - the dynamic, always returned as management accounting information effects of its decisions facing them, giving him the role of auto penalty; - the adaptability to the environment, as has a choice of methods and techniques specific to the concrete situation of the entity.

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Managerial accounting

Entity’s External Information Systems

Other services or functions

Planning and Budget

Accounting Standard costs

Economic Entity’s Scoreboard Information

Analysis

Other parameters

DECISIONS

STRATEGY

Fig. no. 1.1. Managerial accounting in the overall entity’s system [8, p.7] Adaptability to the environment is ensured by the fact that in management accounting domain norming and legislative regulation is very broad, the company having the freedom to organize and to establish practical means of working. Although many and varied, managerial accounting objectives can be grouped as (fig. no 1.2.): - Knowing the costs of the economic entity; - Knowledge of internal operating conditions; - Provision of information becoming more relevant for evaluating certain elements of financial accounting. Knowing the cost of the economic entity was considered for a long time the only purpose of managerial accounting. Knowing the cost of the product is always very topical in view of both a commercial incentive and motivation management products and other reasons [8, p.15].

Managerial accounting objectives Knowledge of product costs

For commercial purposes

To ensure the product

For other purposes

managemen Sale price fixing

Production Economics

Determination of the results

Knowledge of internal operating

Provision of financial accounting

conditions

information

Cost breakdown by product

category

Measuring the effectiveness of strategic guidelines

Decomposition of cost functions Contribuiţi cu o

Determining the products entity policy

Market economies

Fig. no. 1.2. Managerial accounting objectives

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Stock assessment

Property assessment

From the commercial point of view, the first argument for knowing costs is to determine the selling price. In this respect, appears the economic reason aimed at regulating consumption through appropriate pricing policy. In a production economy with imperfect competition, as the Romanian economy, to allow setting prices high is to limit consumption in poor resource organizations, is to limit economic development itself. Pricing must have originated in product costs, provided by managerial accounting. Commercial motivation for knowing the individual costs of products, is especially actual for the period through which the Romanian economy. Knowledge of product costs is necessary to determine the results. Their knowledge provides relevant decisions on production and marketing of certain products. Due to competition, the selling price of a product is not related to the cost unit produced and sold but by game of supply and demand determines the market price. In this case the sale price, is not a result an internal decision but is external information, imposed on the economic entity by market conditions. Motivation of management products specifically refers to companies that make more products, where the costs knowledge will be useful in all decisions regarding the orientation of the product portfolio. In this case the involvement of managerial accounting has as its object strategic decision. Strategic decision concerning the orientation of the product portfolio is based on information provided by marketing both in the demand rate or the lifetime of products, as well as managerial accounting information that relates primarily to the profitability of each product range. Moreover, managerial accounting information must ensure the relevance measure of strategic decision taken in order to monitor the operation of strategic decision-making process and therefore to correct, if necessary, selected guidelines. There are also other reasons of the knowledge products costs such as measuring the value of products or providing information for price control department. Development of commercially competitive situations and management techniques in the management of economic entities resulted in a better understanding of the internal operating conditions, essentially translated, but not exclusively, in terms of cost. It takes into account the cost structure analysis by product and by functions. In a market economy, the appreciation of the result is done by comparing the market price with the cost of production. Each producer has an interest to know better its cost structure to determine the exact areas whose activity needs to be improved to provide competitive products in terms of obtaining a profit. The knowledge of departmental costs, and determination of their structure, is another way to analyze the internal operating conditions. If each department is assigned to a responsible, comparing forecasts and achievements is needed to determine reasons for the differences favourable or unfavourable. The third objective of managerial accounting refers to the provision of information, becoming more relevant to the assessment of certain elements of financial accounting. This concerns primarily the evaluation of Inventories and fixed assets. In Inventories evaluation, managerial accounting contribution is considerable. For fixed assets, managerial accounting can be used either on a partial evaluation or a full evaluation. Partial evaluation occurs when managerial accounting produces information on costs, which, added to the purchase price of the asset, leading to determination of total value. Total evaluation takes place when the economic entity achieved through its own production fixed assets. Although financial accounting and managerial accounting are reflected the same categories of income and expenditure, though views differ. Managerial accounting uses reclassification and regrouping of spending. Determination of costs, on the organizational drives, provides control of each activity centre and a better understanding of the internal conditions of use. Regrouping spending on goods and 49

services, respond to those three objectives of managerial accounting and, above all, knowledge on product costs. Grouping of expenses by variability, provide better knowledge of the internal operating conditions. 2. THE ROLE OF MANAGERIAL ACCOUNTING IN DECISSION-MAKING PROCESS The chartered Institute of Management Accountants in the UK defines managerial accounting as: “Managerial accounting is a part of management that deals with identifying, presenting and interpreting information used for: - The formulation of strategies; - Planning and control of activities; - Decision making; - Uses of resources more effectively; - Inform members and other external information users; - Informing employees; - Protecting assets.” [9, p.17] Managerial accounting, is primarily dealing with collecting data – from internal and external sources analyzing, processing, interpretation and communication of information obtained for use by the organization so that the management can plan, make decisions and better control operations. For performance of those tasks will be use data from both the financial accounting system and the managerial accounting system. Managerial Accounting will use, in addition to accounting techniques, techniques for statistical operational research, will consider the implications of the human factor in all activities, will focus on economic judgment, however, aiming to obtain relevant information for management. The information provided by accounting, are also used in financial management. It is considered essential points of financial management, the following: standing problems of the financial department: financing operational cycle: treasury management, bank relations; medium-term development issues: investment choosing, the choice of funding sources; strategic issues: the interpretation of accounting synthesis documents, evaluation of enterprise, business general diagnosis [10, p.10]. Financial Management as the financial decision support, has no direct resources of observation and measurement of phenomena, but appeals the instruments provided by accounting. But the organization of accounting system and structure the financial accounting information, both for recording transactions in the accounts and for obtaining synthesis documents may be appropriate, or not, to financial analysis categories. Classified in the same gear unity of financial and accounts activities, especially in practical terms, at the level of the functional departments, financial and accounting issues are based on different optics. Although accounting information is, for financial diagnosis, a necessary and especially adapted material to the needs of the financial analysis, financial analysis, however, introduce a change of perspective, as far as showing a time lag between financial and accounting optical. Financial diagnosis, use also no accounting information. Starting from the above, we can appreciate the main issues that define the role of managerial accounting in decision making process, namely: - Provides to leadership, located on different levels of management, information needed for the decisions, and planning, whether it is for formulating plans to achieve the objectives (strategic planning) or short-term operational plans (budgeting); - Assist managers in leading and controlling activities by selecting funding alternatives, and the financial resources management (financial management) and by recording of transactions (financial accounting and costs information); - Motivate managers and other employees, and imposes corrective actions in order to achieve plans; - Measures the activities performances of managers and other employees; 50

-

Support the finding of the position of the organization over competitors.

Accounting is defined as being the process of identifying, measuring and communicating the financial and non-financial information, allowing value judgments, and taking of decisions by users of this information. In the context of a changing business environment in which the organizations have to face new challenges, they will focus on four key factors: cost effectiveness, quality, time and innovation [11, p.19]. In response to changes in business, management accounting system places great emphasis on the collecting and reporting of non-financial information, quantitative and qualitative variables absolutely necessary in the formulation and implementation of the organization strategy. Satisfying changing information requirements impose a continuous adjustment of managerial accounting at the decision-making requirements. Strong international competition has generated new philosophy of action, and these ideas have given new directions to managerial accounting. “New methods of operation - such as real-time operating environment (just-in-time JIT) and total quality management (Total Quality Management - TQM) - forcing companies to restructure their production processes and implement new approaches to allocation expenditures and cost accounting. Fully integrated information systems, generates additional pressures on management accounting system. The role of the budget process is now changing. The new strategies and approaches of how to spend capital, generate new forms of analysis" [12, p.855]. Managerial Accounting "contributes to strategic decisions by providing information concerning sources of competitive advantage and supports managers in identifying and strengthening a company's resources and capabilities" [13, p.23]. 3. USES OF INFORMATION PROVIDED BY THE COSTS SYSTEM IN DECISION MAKING PROCESS The potential for business development of an economic entity, always depended on how it managed to recover by selling products/services, all costs incurred by activities, and development was conditioned by the size of the difference between the amount received from sale of products, execution of works or providing services and the costs of those activities. Cost control is for a long time, in the attention of economists, based on the grounds that competitive advantage resulting from the fundamentally value that an organization is capable of creating it, for its customers in such a way as to be higher than costs incurred by the organization for its creation. Value is what buyers are ready to pay, and superior value, derived from offering lower prices than competitors for equivalent benefits, or providing unique benefits that are more than offset a higher price. Although an economic entity can have many strengths and weaknesses compared to its competitors, there are two types of competitive advantage: the supremacy of the cost (low cost) and differentiation [14, p.16]. The supremacy achievement by cost and differentiation are achieving goals that contradict each other, differentiation is usually costly and often the supremacy of the cost will require to an organization to give in some way to differentiate his product by standardizing and reducing indirect costs for marketing. In any case, an entrepreneur (considered rational if, given the resources he has, make the decision to produce that good that allows the better use of this resources) know that in order to maximize profit is necessary to minimize the total cost of obtaining a certain level of production or to maximize production obtainable with a given level of costs, optimize therefore the volume and structure of production. In fact, the manufacturer is constrained, ultimately, objectively, by the rigors of the market and competition, to rational behaviour, if it wants to remain on that market [15, p.15]. Achieving this objective is depending on the prices at which goods may be sold. Also referring to rationality, but in the context of economic globalization, the classical theory [16, pp.58-60] argues that the globalization bond was and remains rationality, the economic activity, even depersonalized by globalization, being guided throughout the world by the same principles of 51

efficiency. In addition, however important it may be, the political, cultural, ecological factors etc., after all, the economics is what determines the evolution of the globalization process. Managers need a variety of information to plan, control and take decisions. Information regarding the financial aspects of performance is coming from the costs system. This is exemplified in the following table [17, p.17]: Table no. 3.1. Uses of the information provided by the costs system in management Information provided by the costs system 1. Cost per unit of product 2. Divisions, departments or organization costs 3. The cost of labour per unit of product or per production period 4. The cost of failed outputs / rectifications 5. Cost behaviour at the various levels of activity

Potential uses in management - price decision factor, product planning and controlling costs - organizational planning, cost control - production planning, decisions on alternative methods of management, control of labour costs - the materials cost control, production planning; - level of profit planning, decision of "producing or buy", controlling costs

The production cost is an economic indicator with a wide range of use, with a great reflection of the quality of the activity force. "The cost is used as a criteria for underlying the options, and decisions of each producer, where the effects of the project or projects versions are identical, the criterion of the optimal choice, is the lowest cost" [18, p.73]. The finality of cost can be determined in two ways: - Accounting, expenses incurred by adding, using cost-accounting to know the actual cost, of a particular product (compared with pre-calculated cost); - Economic, when the organization wants to go further with its investigations, willing, with the help of the forecast cost calculations, to take pricing decisions. Price gains in these conditions, an important role in formulating market strategies, both that reflects, in his level and structure, the conditions of development of production, transportation, marketing activities etc.., but also because it reflects external conditions of entity, in which the price will accompany the product until the end of its economic cycle. Therefore, price strategy, should be embedded in a long term overall strategy because of price setting, depends not just the financing and development of other strategies, but the entire profitability and development of the organization, accessibility to consumer of the product and the extent of demand, market share and competitiveness, the choice of the segment that aims to it, and its behaviour, the nature of the competition responses. Although opportunities to directly manipulate the price level are limited by a number of restrictions: of internal order (costs of production and circulation, under which the price can be lowered) and external nature (regulations relating to the price or their components, the relative strength between different operators market), to the organization shall remain sufficient opportunities to maintain or improve the level of competitiveness. Regardless of the pricing chosen strategy, the cost is the basis in price determination, because an organization that will sell under costs for long periods will become bankrupt. In a market economy, the market price is not established directly on cost, but on the possibility of equilibrium at some of its levels of the two components of market supply and demand [19, p.79]. The level of production cost is exclusively the producer problem. Knowing the characteristics of indirect link between cost and price, determines steady concerns of producers to optimize their cost, working on reducing it, in order to ensure the highest possible profit. Direct price competition involves indirectly a competition through cost, to the same price level, winning those producers whose cost is lower.

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Therefore in order to hope for some competitiveness, the organization must control the main costs incurred on its Profit and Loss account. Based on the cost structure are identified the key success factors. The cost is thus an endogenous factor of influence, perceived in a permanent change, under the indirect action of the market, which drives often, competitive pressure from price to cost. The cost of production is omnipresent. From a marketing perspective of the activities of an organization, the cost of production acquires new meanings, leading to an understanding of the difference between the customer perceived value and potential value (one that the consumer can be educated to see into a product), elements of an outstanding importance in selecting the price strategies. There is a common reality for all the organizations namely that the results and the costs are in an inverse relationship, a relationship that can be explained by the following argument [20, p.14]: in a social situation, a very small number of extreme events concentrated at 10 to 20% producing 90% of result, while the vast majority of events producing only 10% of the results. Applied to economics, this argument explains that if 90% of the results of activities produced 10% of events, 90% of costs due to the remaining 90% of events that are not good enough, so the resources and efforts will be allocated to the 90 % of events, which producing virtually no results. Therefore what really matters is not the absolute level of costs, but the relationship between results and effort. Regardless of decisions alternatives and the final decision on which the organization will choose consumption of production factors is inevitable. It will always ask: "What does it cost the production of good / service?" or "What goods must be produced in what quantities? How to combine factors used in production of these goods? ". The issue of dimensioning activity, in terms of costs and prices, is a specific issue of designing of a system that has objectives such as: profitability, competitiveness, economy. It is known that the volume of production affects the level of spending, meaning that, increasing it its determining the reduction of the unit cost of product manufactured in this system. The explanation lies in the different movement of expenditure, depending on the volume of production: some of the costs, changes in proportion to the amount allocated to the task and the other remains constant at this change (different components of production costs behave differently in relation with total production, depending on the size of time interval to which they relate). In the economic practice, research undertaken, highlights some difficulties in identifying the function that express correctly the relationship between production size and the unit cost of production. Deterministic models have limitations in this regard because they do not captures the dynamic of regular production factors influence, on the cost of an activity: the variable structure of the production, different wear of the equipment, high variance of commodity prices, the different workload of the work places etc.. As an inconvenience, it highlights the fact that subordinating the activity size only to reason of cost or price; it is difficult to decide on a strategy (development or collapse) in order to achieve objectives. However, in the total of internal information necessary for decision making, cost information has a special place, because on its basis shall be taken decisions on: - The estimation of production volume (and therefore its structure) to achieve a certain profit, considered realistic, or practical option of estimation of the profit for a certain volume of production considered achievable, in the analyzed period; - Setting the selling price of products; - Acceptance or rejection of occasional orders; - The extent of investments or the implementation of new technologies; - Choosing to cooperate with other organizations to manufacture a product, or manufacture the entire product by its own forces; - Diversification of the organization activities, regarding even the vertical integration.

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Information created and managed by cost calculation is considered a commercial secret of the company [21, p.24] and it is designed for the entrepreneur (manager, administrator), as an internal beneficiary, which as a manager must solve problems for allocation and use of resources entrusted by the investor, to achieve performance. In a systemic view, enterprise system includes analysis and cost control subsystem [22, p.6], which, together with the cost information subsystem, and the formation and calculation of cost subsystem is the premise of a rational approach, from a pragmatic perspective, of overall strategic process of the company. Meeting competition, complexity and diversity of production processes is necessary for companies to build, and use a system of knowledge of costs of products, works and services so that they can determine selling prices in accordance with market requirements, and achieving expected margins. The calculation and tracking of the evolution of company’s functions costs, is not a purpose in itself. Their organization is motivated by at least two reasons [23, p.28]: - The changing visions of managers, which occurred with the opening to a market economy, claims a cost accounting information as complete and relevant, able to make it possible intervention to adjust the prices; - The maintenance of the company on the market under the conditions of an accelerating technological improvement and of an increased competition, requires competitiveness that, among other things, depends on the ability for managers to know the costs and therefore to control them. Needs to be made the specifying that the information provided by managerial accounting is not limited to the calculation of production costs based on past economic operations, but allow development of estimated costs, standard or the predetermined costs, thus contributing to decisions on [24, pp 182184]: - Reducing and eliminating losses in processes of supply, production and sales; - Reducing the cost of acquisition of goods; - Increasing labour productivity; - Optimal use of equipment etc; - Reducing downtime of equipment and the duration and value of repairs; - Cease inefficient activities. The role of managerial accounting, exercised through the decision and control functions, it facilitates access to the management position. From this point of view, managerial accounting can be considered a "decision technique for maximizing profitability." The company profitability is characterized in terms of managerial accounting informational function. Knowing the trend of costs and prices of products, activities, types of services offered etc., allows the characterization at the analytical level of the company’s profitability. The organization of managerial accounting, and the importance that is given it, in decision-making process, the options for a particular method of costing or another, are considerations with profound implications on current and future profitability of the company. CONCLUSIONS Decision-making process is very complex because it is critical for the future of any company. It must generate sustainable competitive advantages so that the company be able to dominate the markets that are in a continuous change. At the same time, any decision-making process, regardless of levels of decision includes an extensive competitive analysis, which covers both the internal and the external environment of the company. This can be achieved by using relevant information from all departments o the organizational structure, in which information, provided by the managerial accounting, is central.

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Virtually, without information about costs, the manager may overlook the key issues for profitable management of the company and may choose to compete without benefit of any differentiation. Changes in the modern society, shows that, with the global economy and its increasing complexity, it is necessary to extend the scope, content and timeliness of economic information, as this are able to provide the necessary elements of decision making, to reflect exactly the patrimonial situation of the company and the economic and financial results. Given the previously mentioned, it requires resizing the role of economic information within the firm, by reconsidering the structure of information flows, reducing the amount of information, selecting and prioritizing them, increase the efficiency in providing information for various levels of decisionmaking, establishing a uniform methodology for collecting and processing information, increasing their forecasting character. As a conclusion, it can be stated that managerial accounting information in decision-making process provides security in forecasting the evolution of economic activity, have a decisive role in the scientific basis for decisions on productive economic activities, offers the possibility of establishing multiple correlations between phenomena and allow multilateral analysis. References [1] Fotache M.,Fotache G., (2006), Implicaţiile sistemelor informaţionale asupra evoluţiei contabilităţii, Analele ştiinţifice ale Universităţii Cooperatist-Comerciale Chişinău, Centrul Editorial Poligrafic USM, Chişinău [2] Fotache G., Fotache M., (2002), Dezvoltarea infrastructurii sistemelor informaţionale internaţionale – condiţie esenţială pentru coordonarea activităţilor organizaţiei pe piaţa globală –Editura Academiei Forţelor Terestre „Nicolae Bălcescu”, Sibiu [3] Neagu T., Fotache G., Fotache M., (2000), Tehnologii informaţionale şi globalizare economică: noi evoluţii şi adaptări- Buletin Ştiinţific Anul III, nr.1 - 2000, Univ.”George Bacovia”, Editura “Tehnopres”, Iaşi [4] Fotache M.,Fotache G., (2005), The method concept in developing the information systems, Buletin ştiinţific al Universităţii „George Bacovia” Anul VIII, nr.1, Editura Sedcom Libris, Iaşi [5] Maynard, H.B., (1970), Conducerea activităţii economice, Vol.I, Ed. Tehnică, Bucureşti [6] Imler, K., (2006), Core Roles in a Strategic Quality System, Quality Progress, 39(6) 2006 [7] Călin, O., Man, M., Nedelcu, M.V., (2008), Contabilitate managerială, Editura Didactică şi Pedagogică, Bucureşti [8] Einsetler,J.C., (1991), Gestion d`entreprise. La comptabilité analytique, Edition Economica, Paris [9] Diaconu, P., (2002), Contabilitate managerială, Editura Economică, Bucureşti [10] Eglem, J.Y., Mikol, A., Stolowy, H. (1988), Les Mécanismes financiers de l`entreprise, Edition Montchrétien, Paris [11] Drury, C., (2001), Management Accounting for business decisions, Second Edition, Thomson Learning, London, UK [12] Needles, B.E.Jr, Anderson, H.R., Caldwell J.C., (2000), Principiile de bază ale contabilităţii, Ediţia a cinceaEditura Arc, Chişinău [13] [Horngren, C., Dtar., S.M., Foster, G., (2006), Contabilitatea costurilor, o abordare managerială, Ediţia a XI-a, Editura Arc, Chişinău. [14] Porter, Michael E., (2001), Avantajul concurenţial, Ed. Teora [15] Ghiţă, M., (2000), Sistemul costurilor, Editura Economică [16] Robertson, R., (1992), Globalization, Sage, London [17] Lucey, T., (1993), Costing, DP Publication, London [18] Luca, G.P., Olariu, N., (1994), Elemente de management financiar, Ed. Dosoftei, Iaşi [19] Moşteanu, T., Floricel, C., (1997), Preţuri şi concurenţă, E.D.P. Bucureşti [20] Drucker, P., (2001), Managementul strategic, Editura Teora, Bucureşti [21] Ebbeken, K., Possler, L., Ristea, M., (2000), Calculaţia şi managementul costurilor, Ed. Teora [22] Baciu, A.T., (2001), Costurile: organizare, planificare, contabilitate, calculaţie, control şi analiză, Ed. Dacia, Cluj Napoca [23] Aslău, T., (2001), Controlul de gestiune dincolo de aparenţe, Ed. Economică, Bucureşti [24] Fotache G., Fotache M., (2009), The role of management accounting in new product development and the relevance of traditional cost accounting practices in the modern technological settings, EconomyTransdisciplinarity-Cognition Vol. XII, nr.1/2009

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