The Role of Management Accountants in Decision-Making

Tactical vs Long-Term Decisions

The main role of management accountants in an organisation is to provide some fact information to the managers and other teams who needs that to make the decisions. The decisions either can be the tactical decision, or it can be a long-term decision.

Tactical decisions we can say as a resource commitment and quickly changed or reversed whereas the long-term decisions are those decisions which takes more strategy, movements in the capacity related resources and more difficult to reverse it (Githens, 2019).

In management accounting there are five steps involved before making any decision. They are as follows.

1. Define the problem: At the very first stage the problem should have to be identified.

2. Find some alternative for that problem if there is any: Once the problem is identified then another action need to be taken is to find out the alternative for that problem if there is any.

3. Collect information about how much costs it will incur and what are the benefits after that is done

4. Distinguish the benefits and cost of those alternatives

5. Confirm a course of action which is going to be taken and evaluate effectiveness of the decision

So, in this report I am going to talk about the Brooklyn Fish and Chips company which need the tactical decision for the problem which they are facing.