ACCTG 102 Lecture Notes - Lecture 1: Management Accounting, Cost Leadership
Document Summary
Includes historical events, but focuses on future events. Performance of entities, product lines, departments, and managers. Needs to be flexible enough to provide both financial and managerial accounting information. The key point here is flexibility the system should be able to supply different information for different purposes. Developments in technology, transportation and communication have created the need for better information. In response to the need for better information, activity-based management accounting systems were developed. More detailed approach to determining cost of goods and services. Emphasizes cost of many activities or tasks that must be done to produce a product. Customer value = what customers received what customer gives up. Design -> develop -> produce -> market -> deliver. Allows management to see the big picture and increase quality, reduce time, and improve efficiency. A decision affecting one function affects the others.
