Qualitative Accounting

Management accounting information can create organizational success by enables manager to make a better decision with relevant information provided such as quantitative and qualitative information. When the manager conducting a make or buy decision analysis, both quantitative and qualitative information must be considered. Quantitative information such as production cost per unit and purchase cost per unit while the qualitative information such as reliability of the supplier and employee morale are relevant in make or buy decision making. Quantitative information can be measured in numerical terms which represent a large part in decision making. However, qualitative information difficult to measure in numerical terms but can affect the final

To achieve the company's goal, managers must take adequate short-term or long-term planning to ensure the organization is being properly controlled. Managers can use the past and present information to make a better decision on production, sales or capital expenditure and choose the better way to distribute the resources between the activities (Sztanó, I 2013). This indicated the information for past and present performance has been use as a reference for future performance for the purpose of maximizing the company's profit. For instance, managers can identify which is the profitable products that can be sold and what markets they should be targeted in the future to increase the profitability (Sharma, V n.d). The information can also assist managers in setting a specific goal and thus outline the strategies to achieve the goals. Managers must make sure the company’s objectives and its available resources must be in-line (Sztanó, I 2013). On the other hand, performance reports and control reports obtained from management accounting system enable managers to compare between budgets and actual results to find out the variances and take corrective actions when actual results deviate from budgeted results. If any significant differences detected, managers will investigate immediately to find out the causes (Sharma, V

After identifying those aspects, the company can find a way to improve it. Generally, a well programmed management accounting system can generate useful information which can bring the company become