Management and Organizational Studies 1023A/B Chapter Notes - Chapter 6: Management Accounting, Financial Statement, Opportunity Cost

• School: Western University
• Department: Management and Organizational Studies
• Course: Management and Organizational Studies 1023A/B
• Professor: Barry Hawn

Document Summary

Managerial accounting, decision making, cost classifications, and performance. Accounting: information for decision making four-step framework for decision-making. Periodicity: decision specific data produced, no pre-set rules for how to process, produced as needed. Fixed periodity, with external reports usually released at the end of each quarter. Managers who plan for and control an organization. Future oriented (estimates on future performance, financial or nonfinancial) Need not follow gaap or any prescribed format. Organizational chart: shows the hierarchical relations among positions in an organization. Cost flows and cost terminology product and period costs : Product costs: the costs associated with getting products and services ready for sale: always appear above the line for gross margin, e. g. selling/marketing means it is not a product cost. ***don(cid:495)t need to know specifically: e. g. number of people, number of adults, number of males etc, anything that is going to change the cost. Variable cost per unit remains the same over wide ranges of activity.