Interviewing a relative or friend about managerial accounting Essay - 1

Interviewing a relative or friend about managerial accounting techniques used in their work and writing a summary of the interview - Essay Example I took the opportunity to go to Kim’s company since I did not want to interview him at home. I met his secretary who allowed me to go and see him. I wanted our conversation to be as formal as possible since I had interacted with him on other platforms. After some orientation on the operations of the company, I engaged Kim with questions. Firstly, I focused on understanding the costing systems in the company. Kim was aware that there was a cost accounting system that the company used though he did not know precisely what is was called. However, he was quite clear that the overall cost of production required to be considered in the resource management. Since the company does not have many operations, Kim said that they have simplified financial control system to ensure that operations are run efficiently. At Km’s company, the review of the costing systems is usually done after every one year citing issues of inflation and changing economic patterns. Being a senior manager, Kim has a role in financial decision making in the organization. The senior management usually meets weekly to deliberate on the company operations, trends, acquisitions among other issues. The company uses the break-even analysis in making its financial decisions. This ensures that the company is capable of getting to know its position relative to its profitability. Kim plays a major role in decision-making. As a senior manager, he has a vote in facilitating a consensus on the way the resources in the company are to be spent. In addition, he has the role of ensuring that his department ‘is allocated the resources that are required. In the management, he has the role to defend his projected expenditures as well as giving financial reports on the operations within the department. Kim tells me that the organization is very keen on its budgets. The budgets are