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Decision making

by Gordon on Tuesday 12th February, 2013

CIMA, the Chartered Institute of Management Accountants, is the world’s leading professional body of management accountants. CIMA trained management accountants help to lead the process of strategy formation in a business. However, strategy only points the way. Many decisions – large and small – must be made. Management is all about decision making and management accountants play a vital role in providing the crucial evidence that helps managers to make the right decisions.

Detecting, monitoring and evaluating risk is a very important element of this process. Management accountants use their accounting know-how to factor risk into decisions to help senior managers make realistic plans. For example, Sony has announced that it will halt production of its MiniDisc stereo next month. The decision was reached due to poor sales and the increasing popularity of Apple’s iPod and other MP3 players. (BBC, 1st February 2013)

…(Click here to view the associated lesson resources)

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