ACCT1501 Study Guide - Final Guide: Management Accounting, Total Quality Management, Balanced Scorecard

• School: UNSW, UNSW Sydney
• Department: Accounting
• Course: ACCT1501
• Professor: Yongdoek

Document Summary

Part 1: differences between financial and management accounting. Management accounting: area of accounting concerned with the provision of information to all levels of management: assisting management: planning, directing, motivating, controlling and evaluating responsibilities -> ensure effective allocation of resources. Identify challenge, determine and evaluate decisions, review results. Part 2: how can management accounting systems assist decision making process. Effective management system: identify, collect, measure, classify, report information to assist in making decisions. Management accounting system include: supporting management activities, costing cost management system, budgeting system, performance measurement system. Sunk cost: has been paid and irretrievable and cannot be changed. Controllable costs: heavily influenced by a manager (e. g. wages) Non-controllable costs: a manager has no significant influence. Cost object: items or activity to which costs are assigned. Direct cost: costs that can be traced to a cost object, in a convenient and cost effective way (e. g. direct labour, direct materials)