BU247 Study Guide - Final Guide: Candy Bar, Vilfredo Pareto, Customer Satisfaction
Document Summary
Session 1: ch 1 how management accounting information supports decision making. Management accounting: financial and nonfinancial info, used for decision making, allocating resources, rewarding performance. Cost of producing a product, delivering a service, serving a customer, performing a business process: no rules about its content, orientated to needs of employers and managers (internal, helps a business develop and implement its strategy. Plan-do-check-act cycle: way to develop, implement, monitor, and change a course of action, steps. Plan: defines the organization"s purpose and selects the focus of its strategy. Do: implementation of a course of action. Check: measuring and monitoring performance and taking short-term actions. Act: managers taking action to reduce costs. Session 2: cost classifications - ch 3 using costs in decision making. Management accounting supports decision making: cost information is widely used throughout decision-making situations. Pricing often set price that is an increment of its product"s cost. Product planning developing a product that has a good profit potential.
