1.3.3 Management planning and decision-making

Inside modern organisations

Inside any modern organisations, managers want to exploit the benefits of a double-entry accounting system to get relevant financial info quickly. 

Inefficient use of time leads to increased costs and delays in delivering useful info, so knowing at a glance you can have accurate, up to date costs and revenues is crucial to managing any size organisation.

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Why do modern computer systems help management dec

Computers allow all financial and other relevant records to be accurate and instantly processed, interrogated and summarised in order to produce any management reports needed.

Relevant, reliable and real-time information is an extremely useful resource for effective management decision making.

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Important aspect of management decision-making

An important aspect of management decision making is making plans for the future. 

For example, if a business has evidence that demand for a product is increasing it may be possible to increase the production of the good. This involves a careful analysis of the cost and selling price.

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