BUS 202 Lecture Notes - Lecture 8: Mattress, Electronic Component, Disneymania 5
Document Summary
University of rhode island bus 202 managerial accounting. Description relevant information makes a difference to the decision maker. External financial reporting (gaap: financial statement information is relevant to investors and creditors when it makes a difference to their decisions because: It helps to (cid:271)etter u(cid:374)dersta(cid:374)d the fir(cid:373)"s past and confirm or correct earlier expectations feedback or confirmatory value. It can then be used to predict future outcomes of its past and future activities. It is significant and will influence decision making materiality. It is available to the decision makers when it is needed timeliness. Information is relevant to managers when it makes a difference to their decisions because: It is available to the decision maker when it is needed timeliness. Quantitative factors vs. qualitative factors: both types may be relevant to a decision, either may be the more significant factor. Focus on the relevant data and information and eliminate irrelevant. Analyze the relevant data and information to estimate the future.
