ACCT20001 Lecture Notes - Lecture 1: Management Accounting, Root Mean Square, Value Chain
16 May 2018
School
Department
Course
Professor
Management, Cost Accounting and the framework for
decision-making
Different costs for different purposes → driven by the decision at hand
•Management accounting measures and reports financial information as well as other
types of information that are intended primarily to assist managers in fulfilling the goals of
the organisation
-Includes the identification, generation, presentation, interpretation and use of
relevant information for a broad range of purposes
•Management vs. Financial Accounting:
•Cost Accounting is a “method for measuring the cost of a project, process or thing”
-Includes both financial and non-financial information
-Related to the organisation’s acquisition and consumption of resources
-Provides information for both management and financial accounting
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Document Summary
Management, cost accounting and the framework for decision-making. Includes the identi cation, generation, presentation, interpretation and use of relevant information for a broad range of purposes: management vs. financial accounting, cost accounting is a method for measuring the cost of a project, process or thing . Related to the organisation"s acquisition and consumption of resources. Provides information for both management and nancial accounting. Snapchat: revenue sources: advertising, sponsored lenses, cost of revenue: platform costs - developing, managing and maintaining. Like cogs for a manufacturing business: improve pro tability: increase revenue or decrease expenses. Evaluate using management accounting and metrics - strategic options to add value. A framework for decision making: clarify the decision/problem/objective, specify the decision criteria. Identify (viable) alternatives: collect relevant information, evaluate and compare costs and bene ts of each alternative, make a decision. Choose the one with the highest net bene t i. e. bene t less cost (if they are mutually exclusive alternatives.
