RSM222H1- Final Exam Guide - Comprehensive Notes for the exam ( 24 pages long!)
Document Summary
Management accounting focuses on accounting information to facilitate organizational success. Helps firms respond to change i. e. aggressive cost reduction, outsourcing. Management accountants present financial and non-financial information to make decisions. Managerial accounting is: identifying, measuring, analyzing, interpreting, and communicating in pursuit of organizational goals. Performance reports provide feedback to compare actual results with budget. Measurement skills support planning, directing and motivating, and controlling activities. Cycle of formulating plans, implementing plans, measuring performance, and comparing actual to planned. Strategy enables company to attract customers by differentiating from competitors. Focal point of strategy should be target customers. Deliver products faster, more conveniently, at lower prices. New businesses start strategic planning with a business plan. Consists of information about basic product or service, steps to reach potential market. Fixed portion represents basic minimum cost of having activity ready and available for use. Variable portion represents cost incurred for actual consumption.
