Financial information in decision making
A CIMA case study

Page 1: Introduction

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CIMA is the Chartered Institute of Management Accountants. It supports over 164,000 members and students in 161 countries.  CIMA works with some of the world”s leading businesses and provides a professional qualification in management accounting.  Management accounting plays a vital role in a business. Management accountants look forward and use financial information to help...
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Page 2: Financial Accounting

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[audio= Accounting]

Financial accounting refers to the figures, balances and accounts that a business must produce to demonstrate how the business is performing. In a small business, such as a sole trader or partnership, these accounts may be quite simple. However, they still need to be accurate. This is so that the business owner/s and the tax authorities have clear information about the costs and profits of the...
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Page 3: Management Accounting

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[audio= Accounting]

Management accountants look ahead - they focus on forecasting and decision-making. They use information to advise on how the business can move forward, for example, should a company buy another, should it invest in new equipment. Management accounting involves using the internal financial information available to managers, as well as that information which companies must publish by law. This...
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Page 4: Business strategy

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[audio= strategy]

Strategic decisions are major decisions taken at the highest level of management in an organisation by the Chief Executive, Directors or Board members. They determine the direction of the business over future months and years. They have greater and wider-reaching consequences than the tactical decisions (such as changes to factory layout or processes) or operational decisions, such as increasing...
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Page 5: CIMA strategists in practice

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[audio= strategists in practice]

CIMA qualified management accountants can reach high-level and well-paid jobs in many well-known companies.  Management accountants are responsible for key areas of the company, helping in strategic decision-making. Matthew Parker is the Retail Finance Manager at Topshop, one of the seven key brands of the Arcadia Group. Arcadia is a young and very vibrant company. People are...
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Page 6: Conclusion

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Financial accountants maintain a business' balances and accounts. They keep the business records legal and financially stable. Management accountants focus on forecasting. They have an exciting and forward-looking strategic role in many different types of organisations. They use various tools, such as ratio analysis and investment appraisal, to identify, measure and analyse the financial...
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