ACF2200 Lecture Notes - Lecture 2: Management Accounting, Customer Service, European Cooperation In Science And Technology
3 Aug 2018
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Document Summary
Provides info to help managers control cost. Looks at difference between actual & planned/budget costs. Estimates costs of organisation units (e. g. departments) and/or products (goods and service) Assumes that production volume is the only factor can cause costs to change. Information is mainly obtained from finacial accounting system: modern approaches to costing: Developed to response to changes in business environment. Pro-active and detaled in providing information to manage resource. Focus on a broader range of costs (e. g. costs of activities, products, customers, suppliers etc) Examine what;s going on inside and outside the orgainsation. The real root causes of cost are analysed, and wasteful activities are identified and eliminated. Different costs and classifications are used for different purposes because managers intend to use the information differently. The same cost can be classified in a number of ways depending on the intended use of cost information.
