What types of advisers have you depended upon for assistance in shaping your career? What types of advisers will you be seeking during your managerial career with the hope of practicing diligence? Honest scales and balances are from the Lord; all the weights in the bag are of his making.

 

Proverbs 13:16 (NIV) Every prudent man acts out of knowledge, but a fool exposes his folly.

Proverbs 15:21-22 (NIV) Folly delights a man who lacks judgment, but a man of understanding keeps a straight course. Plans fail for lack of counsel, but with many advisers they succeed.

Proverbs 21:5 (NIV) The plans of the diligent lead to profit as surely as haste leads to poverty.

According to Scripture, God values proper measurements and assessments. Evidence of this reality is found in Proverbs 11:1 and 16:11. You will discover some specific, alternative costing methods in this unit related to the assessment of product and customer costing. It is the ethical responsibility of accounting professionals to possess knowledge of alternative cost management methods and engage in effective communication with managerial personnel about these options. However, the stewardship responsibility of managerial personnel requires a genuine degree of discernment for evaluation of the cost/benefit impact of any costing decision. Deciding upon an accurate weight is not always a simple process and often requires a partnership between accountants and management. The primary objective should be the determination of the measurements in such a way to produce cost calculations that represent the honest use of scales and weights. God has not only provided His people with Biblical principles, but also knowledge of legitimate accounting and strategy methods to operate successfully.

Unfortunately, managers may hastily close divisions, terminate product lines, or reject profitable projects as a result of poor judgments related to cost allocations or cost estimates. Responsible business management is based upon due diligence, which includes the proper use of correct managerial accounting approaches. This diligence applies to resource management associated with the allocation of overhead costs and the amounts connected with customer relations. Successful strategy is not accomplished when executives toss money in the direction of projects without regard to markets, efficiency, or customer needs. Business cycles are full of uncertainties, but sophisticated techniques offer assistance to managers possessing the desire to use probability as a means to practice prudence.