ACC 406 Chapter 1-2:

• School: Ryerson University
• Department: Accounting
• Course: ACC 406
• Professor: Richard Deklerk

Document Summary

Provides accounting information to a company"s internal users. Not bound by gaap (generally accepted accounting principles) or ifrs. Type of information: includes historical events, but focuses on future events. Degree of aggregation: performance of entities, product lines, departments, and managers. Breadth: multiple disciplines: managerial economics, industrial, engineering, management, science, etc. Time orientation: includes historical events, but focuses on future events. Needs to be exible enough to provide both nancial and managerial accounting information. Flexibility-the system should be able to supply di erent information for di erent purposes. Changes in technology, transportation, and communication have resulted in a new focus: (cid:12254) New methods of costing products and services such as activity-based costing. More detailed approach to determine the cost of goods and services. Emphasizes cost of many activities or tasks that must be done to produce a product. Advantage comes when a company chan create better customer value. Customer value = what customer receives - what customer gives up.