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How does managerial accounting assist managers with their responsibilities to the company's stakeholders?

User Hcalves
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Final answer:

Managerial accounting assists managers by providing information on products, revenues, costs, and profits to make informed decisions that affect stakeholder interests and the company's financial stability, thus attracting potential investors.

Step-by-step explanation:

Managerial accounting provides critical information to managers to assist with their responsibilities toward the company's stakeholders. It does this by offering detailed reports on the company's products, revenues, costs, and profits. This helps managers make informed strategic decisions, such as pricing, cost control, and investment analysis, which in turn satisfies stakeholders by demonstrating the company's financial viability and growth potential. As a company becomes established and forecasts profits, outside investors like bondholders and shareholders are more willing to invest since they can rely on this information. Thus, managerial accounting plays an integral role in securing capital for expansion and other business opportunities.

User Wandadars
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