MGIS 317 Lecture Notes - Washing Machine, Indirect Costs, Fixed Cost

• School: University of Calgary
• Department: Management Information Systems
• Course: MGIS 317
• Professor: Ronald Schlenker

Document Summary

Management decisions can cover a wide range of issues and they require much information before effective strategies can be adopted. These business decisions include location of the operations, which method of production to use, which products to continue to make and whether to buy in components or make them within the business. Profit and loss cannot be calculated without accurate cost data. Location might be based on profits and losses. Marketing needs accurate cost data in order to inform their pricing decisions. Costs records might also help to make comparisons with the past. Past costs data can help for future budgets and pricing. Resource use might be based on costs. Business performance is influenced by the cost as the manager decides what is best for the business. Calculating costs for each product is complex; therefore there are many different classifications. The most common costs in manufacturing are the costs of materials and labour.