Strategic Managerial Accounting – a Primer for the IT Professional

Managerial Accounting is a prognostic as well as a diagnostic tool and therefore useful for making key day to day decisions. However the common view, especially in the IT industry, is that Managerial Accounting is for the Accountants despite the fact that IT professionals are regularly confronted by financial situations such as project pricing, measuring performance, estimating risk, allocating costs etc. This means that every proposal needs to be vetted by the respective specialists. While this may be desirable and even necessary, the speed and reliability of the process could improve if the people who originate the proposal had knowledge of the fundamentals that go into the decision making process.