Managerial Accounting

Running head: MANAGERIAL ACCOUNTING
1
Managerial Accounting
Student’s Name
Institutional Affiliation

MANAGERIAL ACCOUNTING 2
Managerial Accounting
Managerial accounting is a critical part of an organization that requires ethical thinking
and behavior in the process of service dispensation. As such, the organization has legal
guidelines and regulations that are made and linked according to the Institute of Management
Accountants code of ethics. The principles are based on several virtues such as fairness, honesty,
confidentiality, responsibility, and objectivity according to managerial accounting principles
(Edmonds, Edmonds, Tsay & Olds 2016). As such, it allows accountants to only disclose
information at the immediate supervisor’s discretion.
As a firm in the aviation industry, integrity prevents accountants from engaging in
unethical conducts. Every six months, a report on ethical standards status of every individual in
the sector is released followed by appropriate measures and possible consequences or praise for
individuals based on the degree of their acts (Shafer, 2015). The airline business is competitive
thus the need for confidentiality of information and ethical behavior that protects and informs the
inner management circle on the probable actions to take.
Furthermore, it tasks individuals with the responsibility of being credible at all times with
the information delivered or released to the public and other members of an organization.
Credibility calls for the ability of individuals in the firm to communicate such information with
utmost objectivity and fairness that reflects an agreement with the International Code of Ethic for
accounting professionals.
In pursuit of excellence in accounting, the firm makes sure the accounting professionals
report all financial information to the managers and other stakeholders despite the nature of a
report. According to Edmonds, Edmonds, Tsay & Olds (2016), such information ought to remain