MGMT 1B Lecture Notes - Lecture 7: Cost Accounting, Management Accounting, Fixed Cost
Document Summary
Provides financial statements in accordance with gaap. Records the past- the history of events and transactions. Measures and reports financial and non financial information that helps managers make decisions to fulfill the goals of an organization. Evaluate the future- used for budgeting and influencing the behavior of managers and employees. Provides information for both management accounting and financial accounting. Measures and reports financial and non financial information that relates to the cost of acquiring or consuming resources by an organization. Includes those parts of managerial accounting and financial accounting where cost information is collected or analyzed. Therefore company will have responsibility centers (where employees will be responsible for certain costs and revenue) i. e. ) cost center, profit center, and investment center. Used by management to see how much they are spending. Variable costs- will vary depending on your output; stays fixed on a per unit basis. Increase or decrease in direct proportion to increase or decrease in production within relevant range.
