Management and Organizational Studies 1023A/B Lecture Notes - Lecture 4: Management Accounting, Opportunity Cost, Internal Audit

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

Document Summary

Managerial accounting: branch of business that helps you make business decisions. Which is not doing anything at all: 4 step process applies to both individuals and organizations, but organizations have focused goals. Organizational goals goal is to maximize shareholder value maximize return in the form of profits to shareholders investing in the company rarely coincide with goals of all participants decisions that attain individual goals may not attain organizational goals. How to align individual goals to organizational goals policies and procedures to define acceptable behaviour. Monitoring to enforce policies and procedures incentive schemes and performance evaluations to motivate employees to consider organizational goals. Planning and controlling cycle planning choices: relate to choices about acquiring and using resources to deliver products/services to customers: which products to offer, prices, resources needed, etc. control decisions: relate to motivating, monitoring, and evaluating past performance.