QUANTITATIVE METHODS OF ANALYSIS FOR MAKING MANAGEMENT DECISIONS

Abstract

Any activity of an organisation depends on how the resources and potential risks of the external and internal environment of the organisation are used. The effective management of a company's production activities depends to a large extent on the level of information provision of individual departments and services.

Enterprises with a complex production structure need fast and timely economic and financial information to help them improve their use of costs and financial results and make correct and informed management decisions. Unfortunately, managerial decisions about the development and organisation of production are not usually based on appropriate calculations, but tend to be intuitive. Information necessary for the operational management of an enterprise is contained in the management accounting system, so we can say that management accounting is one of the new and promising areas of accounting practice.