Ch1 Question 5
Why is managerial accounting relevant to business majors and their future careers?
Managerial accounting is very much relevant to almost every business major there is and their future
positions within the business world. Because it touches practically every industry in the world. It does
not matter which industry you’re going to be in all the managers will be going to become concerned
with how to price services and some products and how to allocate capital and resources to training staff.
The management in a enterprise will most likely know whether it will become profitable to pick up or
develop a brand new line of products and how to know how much we can spend on basic items such as
supplies, utilities and labor cost. It will be very beneficial for those in the upper management to have
knowledge of how the most efficient and optimum way to raise funds or know how to adjust to the
competitive strategic choices iin a dynamic changing environment.
References:
Blocher, E. J., Stout, D. E., & Cokins, G. (2010). Cost Management: A Strategic Emphasis (5th ed.). McGraw-Hill
Geense, M. (2016, January 17). (Delft University of Technology). Retrieved January 11, 2015, from
http://www.managerialaccounting.org/