POL SCI 1 Lecture Notes - Lecture 6: Opportunity Cost, Union Dues, X-Ray
18 Sep 2017
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Document Summary
Chapter theme: this chapter serves three main purposes. First, it describes the work of management and the need for managerial accounting information. Second, it compares financial accounting and managerial accounting. Third, it discusses the four main uses of cost information to prepare external financial reports, to predict cost behavior, to assign costs to cost objects, and to make business decisions. The work of management and the need for managerial accounting information. 3: managers carry out three main activities planning, directing and motivating, and controlling. Feedback, which signals whether operations are on track, is the key to effective control: a performance report compares budgeted to actual results. It suggests where operations are not proceeding as planned and where some parts of the organization may require additional attention: the planning and control cycle. 6: the work of management, which is known as the planning and control cycle, can be depicted as shown. Comparison of financial and managerial accounting: seven key differences.
