Managerial Decision Making in the Aerospace Industry Case Study

As in many different industries, the IT has change overd the way of performing management process. For example, the cost management process went from hand-written and central processor computers to sophisticated computer software applications that help reducing the workload, headcount, and expedite the job completion. Also, this helps modify the outcome quality and increase productivity. The managerial accounting process in the aerospace industries follows a certain stairs.The success of each of the steps depends heavily on the previous step, any break of inefficiency of one or more of the steps will collapse the whole process. Organizations lease to chose between operating a commercial-of-the-shelf software of invest in designing a special software. The companies that chose to sour the commercial software will be able to use it in for operations such as cost estimating, compend, and proposal pricing.While the special intentional software allows more specific operations, it requires a substantial investment to force and operate. Accurate estimation is critical for the financial success and it allows the organization to successfully propose price decision, source of investment. The Department of Defense requires contractor to have an acceptable estimating system. There are different estimate methods such as round table, comparison, detailed, and parametric. A combination of the four methods could be used ground of the needs and timing.The pricing proposal step is one of the complexes and demanding functions that requires an analysis for alternative program plans and schedule, prospective cash flow and return on investment, see internal management views, and respond to the costumers expectations. The project cost has been depending on applications that were knowing internally to help account manager to analyze the cost. After that, just about companies created software that targeted the aerospace industry to help them with project scheduling and ea rned value.The persisting change of requirement made by DOD forces the aerospace industry to throw the new demands and there was more application software available. The constant change of requirements and imposing new regulations by the government and implementation of the advanced software applications have greatly improved the productivity of the cost analysis managers and muffle the workload on the contractors. This resulted in having more effective cost analysis staff that performs better in satisfying the requirements in less era and cost, and provides an more accurate information.