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58) This basically means that managerial accounting, when used correctly should yield in a more efficient company, maximizing the utilization of its employees, equipment, and materials.
Some of the reports that managers use to maximize the output of the company may be for example the Efficiency ratios, which include the Net Income ratio and the Return on Assets ratio. Managers can also use Liquidity ratios, Profitability ratios, and Leverage ratios as well. These different ratios can give management a snap shot view of what is going on at the current moment. In addition, the ratios can be adjusted to look into the future and help see what the possible outcome can be without really having to implement any changes...
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