Context
Global markets give companies access to similar resources and competition
causes many business processes to converge on similar standards. Decision
making is becoming the remaining basis of competitive advantage that can
generate superior returns for shareholders.
Meanwhile, many leading companies have taken the opportunities presented by
developments in systems and globalisation to transform their finance and
accounting (F&A) functions. These opportunities have enabled companies to be
both more efficient in their operations and more effective in how they support
decision making across the business.
Traditionally, the role of the accountant in business may have been to provide
management information to support decision making or to flex the budget after
a decision had been made to allow implementation. However, the role of the
management accountant is relevant throughout the process of effective decision
making. For a definition of the role of the management accountant, please refer
to CIMA’s Official Terminology 2005.