ABSTRACT
This chapter discusses the four cardinal points that are north (goals and principles), south (methods and models), east (boundaries and constraints) and west (collegiate relationship with other managers and employees). The points guide the managerial accountant in exercising their role and responsibilities. The managerial accountant has to select the principles to apply, but if in doubt, the managerial accountant can apply each one-by-one to the particular problem or opportunity they are studying. There are constraints relating to the information selected for analysis or made available to non-accounting managers and employees. To make costs visible, the managerial accountant is concerned with the assignment and behavior of costs. To ensure control, compliance and accountability or governance over organizational resources, the managerial accountant will be concerned with a framework to monitor, evaluate and report on performance in the organization. Methods can lead to the design and operation of models which have a financial orientation.
