Management and Organizational Studies 1023A/B Lecture Notes - Lecture 4: Income Statement, Cost Driver, Variable Cost

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

Document Summary

Big problem in all organizations (goal congruence): expectation that all employees have the same goal for the company and the larger the organization becomes, the harder it is too keep this. Board of directors are not employees, independent, advisors to the company, they have the ability to hire or re the ceo, and decide about what happens. Treasurer: responsible for raising and managing the money. Internal auditor: generally report to cfo, but when something bad occurs they tell the board of directors. Key players in organization make large amount of money due to they"re devision. Variance= di erence; between what we actually had and what we expected. Most cost is either variable or xed, sometimes both can occur therefore it is hard to identify. Variable cost: if the total cost changes when activity changes. Fixed cost: does not changes when activity changes. Committed: hard to change quickly, can be changed but takes time.