Exploring the Role of Managerial Accounting in Enhancing Decision-Making Processes for Sustainable Business Operations in Medium-Sized Enterprises

The purpose of this research is to investigate the role of managerial accounting in the improvement of decision-making practices towards efficient and sustainable business operations in medium-sized enterprises. The study involved a sample of 304 experts from the business sector in Greece; data was collected using a survey questionnaire. Key variables underpinning the study include product costing and valuation, cash flow analysis, capital budgeting techniques, and tracking of financial leverage. The study findings show that the successful setting of product cost has a major impact on pricing strategies, profitability assessment, and budgeting, thereby improving decision making. It has been established that capital budgeting practices play a crucial role in determining strategic investments and business planning towards long-term sustainability. In addition, operating cash flow is essential for funding current operations and meeting cash requirements for activities such as investing in sustainable processes; and financial risk, on the other hand is important in assessing risks of total growth to manage exposures. The study reveals that the primary value of managerial accounting is in helping organisations to make relevant decisions that complement the sustainability and longevity of the business. The adoption of the accounting practices highlighted in this paper can help medium-sized enterprises enhance their financial status and business performance, which are vital for managing volatile markets and fostering sustainable growth.