# ADMS 1500 Lecture Notes - Lecture 5: Management Accounting, Microsoft Powerpoint

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22 Oct 2016
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## Document Summary

The process of identification, measurement, accumulation, analysis, preparation, interpretation, and communication of information that assists managers in making decisions. Organizations need to plan what to do, when to do it and who is responsible for doing it; Organizations need a plan to evaluate how good or bad they are at estimating the fute and at executing the plan. Process of planning the activities of the organizations responsibilities centers for the next period, usually the next year. Budget = profit plan = a plan expressed in quantitative, usually/mostly in monetary, terms covering a specified period of time, usually one year. You are given the sales figures for bc co. for the past five years: Calculate the average % year-on-year increase in sales. Average % increase = (7. 0% + 7. 5% + 7. 0% + 7. 3%)/4 = 7. 2% (b) use the average % increase to estimate \$ sales for year 6.