Management and Organizational Studies 1023A/B Study Guide - Final Guide: Gross Margin, Cost Driver, Financial Accounting

• School: Western University
• Department: Management and Organizational Studies
• Course: Management and Organizational Studies 1023A/B
• Professor: Maria Ferraro

Document Summary

Opportunity cost: the value you give up to get something. Shareholder value: maximize the returns to shareholders investing in the company. Planning decisions: choices about acquiring and using resources to deliver products and services to customers. Control decisions: relate to motivating, monitoring, and evaluating performance through past performance with the purpose of improving future plans. Financial accounting: satisfy the needs of decision makers outside of the firm. Managerial accounting: satisfy the needs of decision makers inside the firm. Product costs: costs associated with getting products and services ready for sale ex. Service firms: offer not tangible or storable good ex. Cogs: cost of goods become part of cogs only when firm sells the items. Cost of beg inv + cost of goods purchased during the period cost of ending inventory = cogs during period. Overhead (manufacturing overhead): total of all these indirect manufacturing inputs ex. Production support staff, machines, equipment selling and administrative costs.