ACC 406 Lecture Notes - Cheque Clearing, Operating Leverage, Contribution Margin
20 Jan 2013
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* financial & nonfinancial information; subjective information possible. Internal information and decision making based on decisions, departments, products and jobs. * must follow externally imposed rules (e. g. gaap) It supports management focus on customer value, total quality management, and time-based competition. Information about value chain activities and customer sacrifice (such as post- purchase costs) is collected and made available. * accounting designations and career opportunities: certified management accountant (cma, chartered accountant (ca, certified general accountant (cga) Indirect costs (i. e. overhead) are allocated to cost objects based on assumed relationships and convenience: expenses are expired costs. Chapter notes: manufacturing overhead is all product costs other than direct materials and direct labor. They cannot be easily traced to the cost object of interest: period costs are all costs that are not product costs; all areas of the value chain except for production. It limits the cost relationship to the range of operations that the firm normally expects to occur.
