ADM 2341 Study Guide - Final Guide: Sonshine Media Network International, Deutsche Luft Hansa, Net Income

• School: University of Ottawa
• Department: Administration
• Course: ADM 2341
• Professor: Fodil Adjaoud

Document Summary

Accounting: a source of information for decision making [ return/risk: to increase the share price to create value/wealth] ): users within the organ [ finance, marketing, hr, production] *managers* Cost: a sum of expense [ cost are classified as: function / volume / cost object / decision: function. Cost incurred in the production (factory) process. Cogm = dm + dl + moh (hydro, utilities, depreciation) Advertising, sales travel, salaries: admininistrative costs. * depreciation- equipment is in the income statement. It varies, in total, in direct proportion with volume activity. Vc is constant on a per unit basis. Y = ax [ a= variable cost ] Mixed cost: vc+ fx -> y = ax + b. Remains constant, in total, in direct proportion within a relative range. Fc is variable on a per unit basis. Cost object is anything for which cost data is desired. Cost that can be traced to the cost object: deciion making.