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Discussion board response. 200 words

Respond to underlined part

Using the GCU Library, locate a journal article about job-costing systems or how managerial accounting helps businesses make decisions. In the subject line of your post, include the name of the article that you read. Post a link to that article with your initial post, and provide a summary and a reaction to the article. The summary should be approximately 250 words, and the reaction should be approximately 150 words. The summary should describe the major points of the article, and the reaction should demonstrate your interpretation of the article and how you can apply that knowledge. Do not choose an article that one of your classmates has already posted. To participate in follow-up discussion, choose one of the articles that a classmate has posted and provide your own reaction to it. Note: It may be challenging to find a relevant article if you do not use the library.

Please include proper citations in your discussion post. Points will be deducted if proper citations are not used.

Demand for Management Accounting Information in Small Businesses

As the title describes, this article pertains to the importance of managerial accounting in association to small businesses. “…[Planning] and decision support are considered to be significant, high-value-added aspects of management accounting” (Dearman, Lechner, & Shanklin, 2018). These scholars obtained survey data so they could evaluate how much of an influence managerial accounting had on entrepreneur’s who needed to obtain financing. 162 surveys came back from individual entrepreneurs. Of these 162 businessmen and women, 109 had prepared business plans prior to starting their companies (Dearman, Lechner, & Shanklin, 2018). Based on these results, a regression analysis was performed. The results proved that managerial accounting information has a positive correlation with a beneficial decision that was made by a leader. The business preparation had a positive connection with a higher investment amount obtained.While this article is geared more towards the planning aspect of decision-making, both aspects go hand-in-hand. Several times throughout the research, the connection is made of the results from solid managerial accounting to successful decision making in businesses that would generate positive results. There were several limits of this study though, and it was clearly noted. The survey was conducted to members from the Arkansas Small Business and Technology Development Center in Arkansas only, thus limiting geography reach. Secondly, the survey went out to over 1,000 individuals, but only about 12% responded. The survey also yielded a 3:2, men-to-women ratio, based on responses. The article ends in potential ways to improve on future studies.

As I read this, honestly, it seemed like common sense. Even with a limited knowledge on managerial accounting at this time, I can understand how if one business is more prepared ahead of time and has solid accounting information, it can lead to an easier time in obtaining financial assistance versus an ill-prepared company. I agree with the theory that the writers proved; managerial accounting has a positive correlation in shaping the planning of a business into make an optimal business decision. I also found that this research has further opportunities for improvement or expansion on this topic. It showed bias and has an opportunity to expand its market research population. Overall, managerial accounting can help me make decisions at my job that can help increase efficiency and produce beneficial results. Whether it is examining a budget, planning for the future, or preparing a specific report for internal stakeholders, managerial accounting is vital in aiding the growth of a business by use of decision-making.


Dearman, D., Lechner, T. A., & Shanklin, S. B. (2018). Demand for Management Accounting Information in Small Businesses: Judgment Performance in Business Planning. International Journal Of The Academic Business World, 12(1), 93-102.

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