ECON 2720 Study Guide - Final Guide: Management Accounting, Finished Good, Cost Driver
21 Apr 2014
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7, exhibit 1-2: differences between financial accounting and managerial accounting, emphasis on the future, relevance of data. Data must be suited for purposes which may include estimates: less emphasis on precision, segments of an organization. Segments: any part of an organization that can be evaluated independently of other parts and about which the manager seeks financial data: generally accepted accounting principles. Managerial accounting is not bound by gaap. Set own ground rules concerning the content and corm of internal reports. 2: line position: a job position that is directly related to the achievement of the organization"s basic objectives, staff position: a job position that is only indirectly related to the achievement of the organization"s basic objectives. Such positions are supportive in nature in that they provide service or assistance to line positions or to other staff positions. Organize work arrangements around the flow of the business process: manufacturing cell. Create a pull system that responds to customer orders.
