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Decision making means process of selecting a logical choice from the available options. In industry, the person who is in charges to making a decision, should weight the positives and negatives of each option, and consider all the alternatives of each option, and consider all the alternatives. “Managerial accounting is concerned with providing information to managers-that is, to those who are inside an organization and who direct a control its operations. Managerial accounting can be constructed with financial accounting, which is concerned with providing information to stockholders, creditors and other outside an organization. Managerial accounting provides the essential data with which organizations are actually run. Financial accounting provides the scorecard by which a company’s past performance is judged.” Ray W. Garrison & Eric W. Noreen, Managerial Accounting 4 (8th ed. 1997)
There are several tools can assist management in making effective decision. First, managers should know the basic of managerial accounting. It included comparing managerial and financial accounting. There are both similarities and differences between managerial and financial accounting. Each field of accounting deals with economic event of a business. For example, determining the unit cost of manufacturing a product is part of managerial accounting. Reporting the total cost of goods manufacturing and sold is part of financial accounting. In management system, managers’ activities and responsibilities can be classified into three broad functions that are planning, directing, and controlling. In planning, manager requires to look ahead and establish objectives. In directing, it involves coordinating a company’s diverse activities and human resources to produce a smooth-running operation. Thirdly, by controlling it can be implement managers of keeping the company’s activities on track.

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