All-Green Company Has Traditionally Used Only Financial Accounting for Its

Essay

All-Green Company has traditionally used only financial accounting for its decision making purposes.The president recently attended a seminar for small-business executives where the importance of managerial accounting was stressed as a way to improve operating decisions.The president was very interested in the use of managerial accounting as a way of planning the company's manufacturing overhead.It seems that the managers have always been at odds over how to best control the overhead accounts.Required:
Explain how the planning of variable and fixed manufacturing overhead can improve the company's decision making process.