Professor Explains Importance of Managerial Accounting

by Justus Cantos

The main purpose of managerial accounting is to maximize profits while minimizing losses for a business and to help managers make important decisions going forward. To understand managerial accounting in more detail, we spoke with Mary Jean Huettner, who teaches the subject at 4C’s as well as other accounting courses.

Mary Jean Huettner in her class room. (Justus Cantos)

Q: How long have been teaching managerial accounting?

A: About 12 years.

Q: What do think is the main takeaway from this class?

A: Understanding costs and cost behavior, so that costs can be managed, which in turn leads the company to higher profit margins. Understanding relevant costs for decision making.

Q: What can be done with managerial accounting skills?

A: All organizations incur costs to run their business, so developing an understanding of the theory of managerial accounting is useful for any person in a management position in every type of organization.

Q: What do you think is the most important part?

A: Learning how to run/manage a business so that the business attains desired profit margins.

Q: What you think are the easiest and hardest parts of managerial accounting?

A: To me, preparing budgets should be fairly easy. The hardest concepts are related to the relevant costs for production decisions.

Q: Is there anything else we should know?

A: Managerial accounting concepts are widely used and highly useful to assist in an organization’s success.

Categories: Featured, Around Campus